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5 Undervalued Industrial Companies Boosting Earnings

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GuruFocus.com
·4 min read
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- By Tiziano Frateschi

The following industrial companies have grown their earnings per share over a five-year period. According to the GuruFocus discounted cash flow calculator as of Oct. 15, all of them also trade with a margin of safety.

Grupo Aeroportuario del Sureste

Grupo Aeroportuario del Sureste SAB de CV's (ASR) earnings per share have grown 20.30% per annum over the past five years.


According to the DCF calculator, the stock is undervalued with a 57.09% margin of safety at $114.49 per share. The price-earnings ratio 12.50. The share price has been as high as $210.38 and as low as $82.08 in the last year; it is currently 45.58% below its 52-week high and 39.49% above its 52-week low.

5 Undervalued Industrial Companies Boosting Earnings
5 Undervalued Industrial Companies Boosting Earnings

The company, which operates nine airports in Southeast Mexico, has a market cap of $3.43 billion and an enterprise value of $4.23 billion.

The company's largest guru shareholder is Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.88% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 0.11%.

GATX

The earnings per share of GATX Corp. (GATX) have grown 7.40% per annum over the past five years.

According to the DCF calculator, the stock is undervalued with a 46.89% margin of safety at $66.64 per share. The price-earnings ratio is 12.67. The share price has been as high as $86.01 and as low as $50.69 in the last year; it is currently 22.52% below its 52-week high and 31.47% above its 52-week low.

5 Undervalued Industrial Companies Boosting Earnings
5 Undervalued Industrial Companies Boosting Earnings

The company, which provides railcar leasing and maintenance services, has a market cap of $2.33 billion and an enterprise value of $7.30 billion.

The company's largest guru shareholder is Mario Gabelli (Trades, Portfolio)'s GAMCO Investors with 5.52% of outstanding shares, followed by Simons' firm with 0.20% and Ray Dalio (Trades, Portfolio)'s Bridgewater Associates with 0.02%.

Allegiant Travel

Allegiant Travel Co.'s (ALGT) earnings per share have grown 13.80% per annum over the past five years.

According to the DCF calculator, the stock is undervalued with a 417.05% margin of safety at $127.58 per share. The price-book ratio is $2.81. The share price has been as high as $183.26 and as low as $60.06 in the last year; it is currently 30.38% below its 52-week high and 112.42% above its 52-week low.

5 Undervalued Industrial Companies Boosting Earnings
5 Undervalued Industrial Companies Boosting Earnings

The travel services provider has a market cap of $2.07 billion and an enterprise value of $2.91 billion.

The company's largest guru shareholder is Diamond Hill Capital (Trades, Portfolio) with 2.81% of outstanding shares, followed by Chuck Royce (Trades, Portfolio) with 0.47% and PRIMECAP Management (Trades, Portfolio) with 0.24%.

Encore Wire

The earnings per share of Encore Wire Corp. (WIRE) have grown 13.30% per annum over the past five years.

According to the DCF calculator, the stock is undervalued with a 38.66% margin of safety at $48.37 per share. The price-earnings ratio is 17.46. The share price has been as high as $62.08 and as low as $38.01 in the last year; it is currently 22.08% below its 52-week high and 27.26% above its 52-week low.

5 Undervalued Industrial Companies Boosting Earnings
5 Undervalued Industrial Companies Boosting Earnings

The company, which manufactures electrical building wire and cable, has a market cap of $997.96 million and an enterprise value of $747.57 million.

The company's largest guru shareholder is Barrow, Hanley, Mewhinney & Strauss with 3.83% of outstanding shares, followed by Royce with 0.64% and HOTCHKIS & WILEY with 0.15%.

SP Plus

SP Plus Corp.'s (SP) earnings per share have grown 24.70% per annum over the past five years.

According to the DCF calculator, the stock is undervalued with a 130.44% margin of safety at $18.26 per share. The price-book ratio is 1.57. The share price has been as high as $47.33 and as low as $14.44 in the last year; it is currently 61.42% below its 52-week high and 26.45% above its 52-week low.

5 Undervalued Industrial Companies Boosting Earnings
5 Undervalued Industrial Companies Boosting Earnings

The company, which provides parking management, ground transportation and other ancillary services, has a market cap of $421.57 million and an enterprise value of $1.13 billion.

With a 2.81% stake, Renaissance Technologies is the company's largest guru shareholder, followed by Barrow, Hanley, Mewhinney & Strauss with 0.09% and Paul Tudor Jones (Trades, Portfolio) with 0.05%.

Disclosure: I do not own any stocks mentioned.

Read more here:

  • 5 Companies Trading With Low Price-Earnings Ratios

  • The Parnassus Fund Exits Trimble, Dentsply Sirona

  • 5 Guru Stocks Growing Book Value



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This article first appeared on GuruFocus.