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6 Retailers Trading With Low Price-Earnings Ratios

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·6 min read
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As of Thursday, the GuruFocus All-in-One Screener, a Premium feature, found that the following restaurants stocks have low price-earnings ratios and have been bought 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.

Best Buy


With a market cap of $13.85 billion, Best Buy Co. Inc. (BBY) has a price-earnings ratio of 9.28. According to the DCF calculator, the stock has a fair value of $62.18 while trading at $54.

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The stock has lost 22% over the last 12 months and is now 41.70% below the 52-week high and 11.47% above the 52-week low.

The company has a GuruFocus profitability rating 7 out of 10. The return on equity of 46.56% and return on assets of 10.28% are outperforming 89% of companies in the retail - cyclical industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 0.55 is above the industry median of 0.42.

The company's largest guru shareholder is Pioneer Investments (Trades, Portfolio) with 1.08% of outstanding shares, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.65% and Joel Greenblatt (Trades, Portfolio)'s Gotham Asset Management with 0.05%.

Ardagh Group

With a $2.71 billion market cap, Ardagh Group SA (ARD) is trading with a price-earnings ratio of 1.87.

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The share price has declined 13% over the past 12 months and is now 46.43% below the 52-week high and 25.43% above the 52-week low.

The producer of consumer metal packaging has a GuruFocus profitability rating of 5 out of 10. The return on assets of 14.22% is outperforming 96% of companies in the packaging and containers industry. Its financial strength is rated 3 out of 10. The cash-debt ratio of 0.1 is below the industry median of 0.31.

Simons' firm is the company's largest guru shareholder with 0.40% of outstanding shares, followed by Mario Gabelli (Trades, Portfolio)'s GAMCO Investors with 0.01%.

BorgWarner

With a market cap of $4.68 billion, BorgWarner Inc. (BWA) is trading with a price-earnings ratio of 6.29 and a price-book ratio of 1. According to the DCF calculator, the stock has a fair value of $102.49 while trading at about $22.70.

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Shares have tumbled 45% over the last 12 months and are now 51.18% below the 52-week high and 33.82% above the 52-week low.

The auto-parts supplier has a Gurufocus profitability rank of 8 out of 10. The company's return on equity of 16.91% and return on assets of 7.41% are outperforming 84% of companies in the vehicles and parts industry. The cash-debt ratio of 0.41 is below the industry median of 0.46.

The company's largest guru shareholder is Diamond Hill Capital (Trades, Portfolio) with 5.37% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 1.90% and John Rogers (Trades, Portfolio) with 0.96%.

Carnival

Carnival Corp. (CCL) has a market cap of $6.25 billion and is trading with a price-earnings ratio of 2.04. According to the DCF calculator, the stock has a fair value of $57.83 while trading at about $8.80.

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Shares have tumbled 83% over the last 12 months and are now trading 86.08% below the 52-week high and 3.42% above the 52-week low.

GuruFocus gives the global cruise company a profitability rating of 8 out of 10. The return on equity of 12.11% and return on assets of 6.8% are outperforming 79% of companies in the travel and leisure industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.05 is below the industry median of 0.45.

With 3.10% of outstanding shares, PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder, followed by Leon Cooperman (Trades, Portfolio)'s Omega Advisors with 0.11% and Rogers with 0.09%.

Capri Holdings

Capri Holdings Ltd. (CPRI) has a market cap of $1.35 billion. Its shares are trading with a price-earnings ratio of 3.97. According to the DCF calculator, the stock has a fair value of $24.40 while trading at $8.99.

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Share prices have declined 81% over the past 12 months and are currently trading 82% below the 52-week high and 65.87% above the 52-week low.

The apparel and accessories distributor has a GuruFocus profitability rating of 8 out of 10. The return on equity of 14.43% and return on assets of 4.6% are outperforming 70% of companies in the apparel and accessories industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.06 is far below the industry median of 0.48.

The company's largest guru shareholder is PRIMECAP Management (Trades, Portfolio) with 2.54% of outstanding shares, followed by Louis Moore Bacon (Trades, Portfolio) with 0.23% and Pioneer Investments (Trades, Portfolio) with 0.18%.

Crocs

Crocs Inc. (CROX) has a market cap of $1.05 billion. Its shares are trading with a price-earnings ratio of 9.14 and a price-book ratio of 8.15. According to the DCF calculator, the stock has a fair value of $17.98 while trading at $15.34.

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Shares have declined 42% over the past 12-month period and are currently trading 65.08% below the 52-week high and 82.02% above the 52-week low.

The designer of footwear accessories has a GuruFocus profitability rating of 7 out of 10. The return on equity of 94.15% and return on assets of 18.12% are outperforming 97% of companies in the apparel and accessories industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.28 is below the industry median of 0.48.

The company's largest guru shareholder is the Simons' firm with 7% of outstanding shares, followed by Lee Ainslie (Trades, Portfolio)'s Maverick Capital with 0.39% and Cohen with 0.11%.

Disclosure: I do not own any stocks mentioned.

Read more here:

  • 6 Healthcare Companies Boosting Book Value

  • 5 Defensive Stocks Gurus Are Buying

  • 6 Transportation Stocks Growing Earnings



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This article first appeared on GuruFocus.