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8 Undervalued Stocks With Growing Book Values

- By Tiziano Frateschi

The following companies have grown their book values per share (BV/S) over the last 10 years.

BV/S is calculated as total equity minus preferred stock, divided by shares outstanding (EOP). Theoretically, it is what shareholders will receive if the company is liquidated. Total equity is a balance sheet item and equal to total assets minus total liabilities. Because 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 ConnectOne Bancorp Inc. (CNOB) has grown by 11% over the last 10 years. The price-book (P/B) ratio is 2, and the price to tangible book ratio is 2.

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ConnectOne Bancorp is a one-bank holding company. It provides banking services, including lending, depository and related financial services to commercial, industrial and government customers.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 11% at $22.9. The price has been as high as $26.65 and as low as $15.09 in the last 52 weeks. It is 13.88% below its 52-week high and 52.09% above its 52-week low. The price earnings (P/E) ratio is 22.73.

Jim Simons (Trades, Portfolio) is the largest shareholder of the company among the gurus with 2.66% of outstanding shares, followed by Paul Tudor Jones (Trades, Portfolio) with 0.11%.

The BV/S of BofI Holding Inc. (BOFI) has grown by 19% over the last 10 years. The P/B ratio is 2.1, and the price to tangible book ratio is 2.1.

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BofI Holding provides diversified financial services, including consumer and business banking products through its branchless distribution channels and affinity partners.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 56% at $24.77. The price has been as high as $32.57 and as low as $15.29 in the last 52 weeks. It is 23.95% below its 52-week high and 62.00% above its 52-week low. The P/E ratio is 12.55.

The company's largest shareholder among the gurus is Chuck Royce (Trades, Portfolio) with 0.71% of outstanding shares, followed by David Dreman (Trades, Portfolio) with 0.03%.

The BV/S of Home BancShares Inc. (HOMB) has grown by 14% over the last 10 years. The P/B ratio is 2.7, and the price to tangible book ratio is 3.8.

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Home BancShares, through its subsidiary, provides commercial and retail banking and related financial services to businesses, real estate developers and investors, individuals and municipalities.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 30% at $25.28. The price has been as high as $29.69 and as low as $18.32 in the last 52 weeks. It is 14.85% below its 52-week high and 37.99% above its 52-week low. The P/E ratio is 20.06.

The BV/S of Corning Inc. (GLW) has grown by 12% over the last 10 years. The P/B ratio is 1.9, and the price to tangible book ratio is 1.6.

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Corning manufactures specialty glass and ceramics. The company's segments are Display Technologies, Optical Communications, Environmental Technologies, Specialty Materials and Life Sciences.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 22% at $26.54. The price has been as high as $28.36 and as low as $18.21 in the last 52 weeks. It is 6.42% below its 52-week high and 45.74% above its 52-week low. The P/E ratio is 8.32.

Dodge & Cox is the largest shareholder of the company among the gurus with 3.37% of outstanding shares, followed by Hotchkis & Wiley with 3.04%, PRIMECAP Management (Trades, Portfolio) with 2.02%, Charles Brandes (Trades, Portfolio) with 0.5%, Donald Yacktman (Trades, Portfolio) with 0.33%, Mairs and Power (Trades, Portfolio) with 0.28%, Richard Pzena (Trades, Portfolio) with 0.17%, the Yacktman Fund (Trades, Portfolio) with 0.16%, Pioneer Investments (Trades, Portfolio) with 0.09% and Mario Gabelli (Trades, Portfolio) with 0.06%.

The BV/S of Carriage Services Inc. (CSV) has grown by 8% over the last 10 years. The P/B ratio is 2.6.

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Carriage Services provides death care services and merchandise in the United States. It operates funeral homes and cemeteries. It provides funeral services and sells related merchandise such as caskets and urns.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 13% at $27.49 The price has been as high as $29.11 and as low as $21.67 in the last 52 weeks. It is 5.57% below its 52-week high and 26.86% above its 52-week low. The P/E ratio is 24.78.

The company's largest shareholder among the gurus is Simons with 4.5% of outstanding shares, followed by Keeley Asset Management Corp (Trades, Portfolio) with 1.33%.

The BV/S of Cardinal Financial Corp. (CFNL) has grown by 9% over the last 10 years. The P/B ratio is 2, and the price to tangible book ratio is 2.2.

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Cardinal Financial provides financial products and services. The company offers home mortgages to small business loans, a personal checking account, wealth management services or corporate cash management relationships.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 33% at $27.97. The price has been as high as $34.75 and as low as $20.01 in the last 52 weeks. It is 19.51% below its 52-week high and 39.78% above its 52-week low. The P/E ratio is 19.03.

The company's largest shareholder among the gurus is Mairs and Power (Trades, Portfolio) with 0.83% of outstanding shares, followed by Simons with 0.4%.

The BV/S of LKQ Corp. (LKQ) has grown by 18% over the last 10 years. The P/B ratio is 2.5.

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LKQ is a provider of vehicle products, including replacement parts, components and systems used in the repair and maintenance of vehicles, as well as specialty vehicle products and accessories.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 32% at $28.08. The price has been as high as $36.35 and as low as 83 cents in the last 52 weeks. It is 22.75% below its 52-week high and 0.83% above its 52-week low. The P/E ratio is 18.85.

David Rolfe (Trades, Portfolio) is the largest shareholder of the company among the gurus with 1.24% of outstanding shares, followed by Chuck Akre (Trades, Portfolio) with 1.15%, Alan Fournier (Trades, Portfolio) with 0.65%, Columbia Wanger (Trades, Portfolio) with 0.64%, Simons with 0.16%, Pioneer Investments (Trades, Portfolio) with 0.12%, Steven Cohen (Trades, Portfolio) with 0.07% and Royce with 0.06%,

The BV/S of Hibbett Sports Inc. (HIBB) has grown by 16% over the last 10 years. The P/B ratio is 1.9, and the price to tangible book ratio is 1.8.

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Hibbett Sports operates sporting goods retail stores in small to mid-sized markets in the Southeast, Southwest, Mid-Atlantic and Midwest.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 44% at $28.30. The price has been as high as $45.85 and as low as $27.25 in the last 52 weeks. It is 38.28% below its 52-week high and 3.85% above its 52-week low. The P/E ratio is 10.45.

The company's largest shareholder among the gurus is Royce with 3.3% of outstanding shares, followed by First Pacific Advisors (Trades, Portfolio) with 1.18%, Barrow, Hanley, Mewhinney & Strauss with 0.74%, John Hussman (Trades, Portfolio) with 0.6%, Cohen with 0.74% and Robert Olstein (Trades, Portfolio) with 0.1%.

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

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This article first appeared on GuruFocus.