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5 Utilities Trading With Low Price-Earnings Ratios

GuruFocus.com
·5 min read

- By Tiziano Frateschi

As of Nov. 26, the GuruFocus All-in-One Screener, a Premium feature, found that the following utilities have low price-earnings ratios and are owned by gurus. While some of them are great value investments, others may need to be researched more carefully, according to the discounted cash flow calculator.


China Recycling Energy

With a market cap of $15.44 million, China Recycling Energy Corp. (CREG) has a price-earnings ratio of 2.47 and a price-book ratio of 0.16. According to the DCF calculator, the stock has a fair value of $21.40 while trading at $4.94.

5 Utilities Trading With Low Price-Earnings Ratios
5 Utilities Trading With Low Price-Earnings Ratios

The stock has gained 155% over the last 12 months and is now 33.24% below the 52-week high and 208.85% above the 52-week low.

The company, which develops waste energy recycling for industrial applications in China, has a GuruFocus profitability rating of 4 out of 10. While the return on equity of 2.88% is underperforming the sector, the return on assets of 1.73% is outperforming 55% of companies in the utilities, independent power producers industry. Its financial strength is rated 3 out of 10. The cash-debt ratio of 3.38 is above the industry median of 0.21.

Kenon Holdings

With a $1.44 billion market cap, Kenon Holdings Ltd. (KEN) is trading with a price-earnings ratio of 4.79 and a price-book ratio of 1.62. According to the DCF calculator, the stock has a fair value of $54.69 while trading at $26.80.

5 Utilities Trading With Low Price-Earnings Ratios
5 Utilities Trading With Low Price-Earnings Ratios

The share price has risen 30% over the past 12 months and is now 1.111% below the 52-week high and 153% above the 52-week low.

The holding company has a GuruFocus profitability rating of 4 out of 10. The return on equity of 42.69% and return on assets of 18.38% are outperforming 96% of companies in the utilities, regulated industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.53 is below the industry median of 0.25.

Cia Paranaense De Energia

With a market cap of $3.56 billion, Cia Paranaense De Energia (ELP) is trading with a price-earnings ratio of 5.32. According to the DCF calculator, the stock has a fair value of $27.73 while trading at $13.01.

5 Utilities Trading With Low Price-Earnings Ratios
5 Utilities Trading With Low Price-Earnings Ratios

Shares have lost 9.84% over the last 12 months and are now 28.32% below the 52-week high and 57.13% above the 52-week low.

The company, which produce power, has a GuruFocus profitability rank of 7 out of 10. The company's return on equity of 18% and return on assets of 8.16% are outperforming 85% of competitors in the utilities, regulated industry. Its financial strength is rated 4 out of 10 with a cash-debt ratio of 0.35 that is above the industry median of 0.25.

Jim Simons (Trades, Portfolio)' Renaissance Technologies is the company's largest guru shareholder with 0.16% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.04% and Jeremy Grantham (Trades, Portfolio) with 0.02%.

Companhia De Saneamento Basico

Companhia De Saneamento Basico Do Estado De Sao Paolo (SBS) has a market cap of $5.58 billion and is trading with a price-earnings ratio of 15.02 and a price-book ratio of 1.40. According to the DCF calculator, the stock has a fair value of $8.82 while trading at $8.16.

5 Utilities Trading With Low Price-Earnings Ratios
5 Utilities Trading With Low Price-Earnings Ratios

Shares have declined 36% over the last 12 months and are now trading 47.01% below the 52-week high and 47.29% above the 52-week low.

The Brazilian water and waste management company has a GuruFocus profitability rating of 8 out of 10. The return on equity of 9.35% and return on assets of 4.27% are outperforming 56% of companies in the utilities, regulated industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.21 is below the industry median of 0.25.

With 0.97% of outstanding shares, Simons' firm is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.14% and Grantham with 0.02%.

UGI

UGI Corp. (UGI) has a market cap of $7.4 billion. Its shares are trading with a price-earnings ratio of 14.88. According to the DCF calculator, the stock has a fair value of $29.60 while trading at $37.64.

5 Utilities Trading With Low Price-Earnings Ratios
5 Utilities Trading With Low Price-Earnings Ratios

Shares have decreased 15% over the past 12 months and are currently trading 19.11% below the 52-week high and 73.06% above the 52-week low.

The U.S. holding company has a GuruFocus profitability rating of 6 out of 10. The return on equity of 13.2% and return on assets of 3.82% are outperforming 62% of competitors in the utilities, regulated industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.05 is far above the industry median of 0.25.

The company's largest guru shareholder is First Eagle Investment (Trades, Portfolio) with 3.53% of outstanding shares, followed by Diamond Hill Capital (Trades, Portfolio) with 1.31%.

Disclosure: I do not own any stocks mentioned.

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This article first appeared on GuruFocus.