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5 Undervalued Stocks Growing Book Value

- By Tiziano Frateschi

According to the GuruFocus All-In-One Screener, the following companies have grown their book value per share (BV/S) over the past decade.

BV/S is calculated as total equity minus preferred stock, divided by shares outstanding. Theoretically, it is what shareholders will receive if a company is liquidated. Total equity is a balance sheet item and equal to total assets minus total liabilities. Since the BV/S may not reflect the company's true value, some investors check the tangible book value to confirm their investment ideas.


The BV/S of Gildan Activewear Inc. Class A (GIL) has grown 17% over the past 10 years. The price-book ratio is 3.17 and the price to tangible book value is 4.7.

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The apparel manufacturer has a market cap of $6.03 billion.

According to the discounted cash flow calculator, the stock is undervalued and is trading with a 15% margin of safety at $28.90. The stock price has been as high as $34.19 and as low as $25.33 in the past 52 weeks. It is 15.5% below its 52-week high and above 14% its 52-week low. The price-earnings ratio is 18.76.

The company's largest shareholder among the gurus is Sarah Ketterer (Trades, Portfolio) with 7.57% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 0.71%.

Gentex Corp. (GNTX)'s BV/S has grown 12% over the past decade. The price-book ratio is 3.3 and the price to tangible book value is 4.9.

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The company designs and manufactures auto parts and has a market cap of $6.32 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 43% margin of safety at $23.5. The stock price has been as high as $25.41 and as low as $18.04 in the past 52 weeks. It is 7.44% below its 52-week high and 30.38% above its 52-week low. The price-earnings ratio is 15.08.

The company's largest shareholder among the gurus is Chuck Royce (Trades, Portfolio) with 1.13% of outstanding shares followed by Simons with 0.47%, Columbia Wanger (Trades, Portfolio) with 0.37% and First Pacific Advisors (Trades, Portfolio) with 0.24%.

The BV/S of CAI International Inc. (CAI) has grown 17% over the past 10 years. The price-book ratio is 0.8 and the price to tangible book value is 0.9.

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The transportation finance and logistics company has a market cap of $512 million.

According to the DCF calculator, the stock is undervalued and is trading with a 45% margin of safety at $26.5. The stock price has been as high as $40.11 and as low as $19.35 in the past 52 weeks. It is 38.42% below its 52-week high and 27.65% above its 52-week low. The price-earnings ratio is 5.83.

Royce is the largest shareholder of the company among the gurus with 2.92% of outstanding shares.

IRSA Propiedades Comerciales SA ADR (IRCP)'s BV/S has grown 38% over the past decade. The price-book ratio is 0.93 and the price to tangible book value is 0.9.

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The company operates in the real estate industry with a market cap of $799.47 million.

According to the DCF calculator, the stock is undervalued and is trading with a 89% margin of safety at $25. The stock price has been as high as $64.68 and as low as $24 in the past 52 weeks. It is 61.78% below its 52-week high and 3% above its 52-week low. The price-earnings ratio is 2.42.

The company's largest shareholder among the gurus is Ruane Cunniff (Trades, Portfolio) with 0.33% of outstanding shares.

The BV/S of Silgan Holdings Inc. (SLGN) has grown 6% over the past 10 years. The price-book ratio is 3.6.

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The company manufactures rigid packaging for consumer goods products. It has a market cap of $3 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 29% margin of safety at $27.35. The stock price has been as high as $31.05 and as low as $26.47 in the past 52 weeks. It is 11.92% below its 52-week high and above 4.47% its 52-week low. The price-earnings ratio is 9.53.

Simons is the largest shareholder of the company among the gurus with 0.34% of outstanding shares followed by Hotchkis & Wiley with 0.09%, Joel Greenblatt (Trades, Portfolio) with 0.02% and Murray Stahl (Trades, Portfolio) with 0.01%.

Disclosure: I do not own any shares of any stocks mentioned in this article.

This article first appeared on GuruFocus.