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Top 4 International Stocks at 52-Week Lows
Posted by: Holly LaFon (IP Logged)
Date: October 31, 2012 03:47PM
According to GuruFocus’ list of 52-week lows, these Guru-owned stocks are traded at close to their 52-week lows: NTT DoCoMo Inc. (DCM), Baidu Inc. (BIDU), Banco Santander Brasil SA (BSBR) and Shire Plc (SHPG).
NTT DoCoMo Inc. (DCM)
NTT DoCoMo is trading for $14.30, close to its 52-week low of $14.70, after falling almost 20% over the last year. Five Gurus hold this stock.
NTT DoCoMo is the largest mobile, data and multimedia services company in Japan, and one of the world’s largest mobile communications companies with more than 60 million customers in Japan and a domestic market share of 46.9%.
DoCoMo’s revenues declined annually from 2008 to 2011, and increased from 4.2 billion yen that year to 4.2 billion yen in 2012. Net income has been near half a billion yen for the past five years, declining from 491 million yen in 2011 to 460 million yen in 2012.
GuruFocus indicates that the company has seven good signs: a strong financial position, enough cash to cover all of its debt, consistent revenue per share growth, expanding margin, a stock price near its 52-week low, a P/E ratio (11) close to a three-year low and a P/B ratio (1) also close to a three-year low.
The growth in the Japanese mobile communication market is expected to be slow for conventional voice use, the company said in its annual report for the year ended March 31, 2012. It expects growth from the expanded use of smartphones, flat-rate packet services and high-speed data communication services which are increasing data usage and the creation of new market opportunities like mobile phone content and apps.
DoCoMo’s recent share price decline to 14-year lows primarily resulted from it cutting its annual profit forecast due to not selling the Apple iPhone 5.
Baidu Inc. (BIDU)
Baidu is trading for $107.02, close to its 52-week low of $104.98, after declining almost 24% over the last year. Eleven Gurus hold this stock.
Baidu is the Chinese Internet search engine comparable to Google with the world’s largest Internet user population of 477 million as of mid-2011. It generates revenue through offering online marketing and display advertising on its organic and affiliated websites.
In the last five years, Baidu has grown revenue at a rate of 77.4% annually, EBITDA at a rate of 92.8% annually and book value at a rate of 67.6% annually.
In 2011, Baidu’s revenue jumped 83.2% year over year to $2.3 billion, with online marketing revenues increasing 83.1%, driven by an increase in the number of marketing customers and revenue per customer.
In its most recently reported third quarter, ended Sept. 30, 2012, Baidu reported a 49.7% year over year revenue increase to $996.4 million, driven by a 49.6% increase in online marketing revenues as a result of an increase in the number of customers and revenue per customer. Net income increased 59.8% to $478.6 million, driven by its continued investment in areas it sees as growing in the future, such as mobile and cloud.
Baidu is losing Chinese search engine market share to a new competitor, Qihoo 360, according to Forbes.
GuruFocus gives the company five good signs: strong financial strength, strong Altman Z-Score (which indicates the a company’s closeness to bankruptcy), stock price close to one-year low, a P/E ratio (29.1) close to a three-year low and a P/B ratio (11.8) close to a three-year low.
Banco Santander Brasil SA (BSBR)
Banco Santander is trading for $6.84, close to its 52-week low of $6.77, after declining 25% over the last year.
Banco Santander Brasil is the Brazilian unit of the Spanish bank, Santander, and the nation’s third-largest bank not owned by the government. It went public in October 2009 and its stock has declined 48% since then.
In the three years it has been a public company, Santander Brasil’s revenue increased from $23.6 billion to $36.4 billion, and net income increased from $2.8 billion to $4.7 billion. Its cash has increased from $98.9 billion to $168.1 billion, and long-term liabilities and debt have increased from $28.39 billion to $41.75 billion. Return on equity increased from 8% to 9.9% and return on assets increased from 1.7% to 1.9%.
Santander Brasil has a P/E of 8.57, P/S of 0.39 and P/B of 0.32.
The bank’s third quarter net revenue was $741 million, an 8.5% year-over-year decline due to loan loss provision expenses related to a year-over-year rise in default rates. Return on equity increased slightly to 11.7% from 11.5% the previous quarter. Its number of clients also increased to 26.85 million from 24.7% in the same period a year ago.
Shire Plc (SHPG)
Shire Plc is trading for $84.39, close to its 52-week low of $82.65, after declining 3.4% over the last year. Seven Gurus hold this stock.
Shire Pharmaceuticals Group Plc is the world’s largest maker of pharmaceuticals to treat attention deficit and hyperactivity disorder (ADHD), and also focuses on gastrointestinal (GI) diseases, human genetic therapies (HGT) and regenerative medicine (RM) and other areas. It has 5,000 employees in 29 countries.
In the last five years, Shire has increased revenue per share at an annual growth rate of 14.8%, EBITDA per share at an annual growth rate of 29.5%, free cash flow per share at an annual growth rate of 14.6% and book value per share at an annual growth rate of 13.3%. It has cash on its balance sheet of $1.9 billion and long-term liabilities and debt of $1.9 billion.
GuruFocus sees seven good signs in Shire: strong financial strength, consistent per-share revenue growth, expanding operating margin, dividend yield close to a two-year high, price close to a one-year low, P/E ratio close to a three-year low and P/B ratio close to a three-year low.
Shire has a P/E of 14, P/B of 4.38 and P/S of 3.7.
For the quarter ended Sept. 30, 2012, Shire reported 1% year-over-year increase in revenues to $1.1 billion, and 6% in non-GAAP earnings per ADS, driven by a 20% increase in R&D investment in its late-stage pipeline. It reported in its third quarter results that it is on track to deliver double-digit earnings growth in full year 2012.
Product sales excluding its ADD drug Adderall XR were up 10%; Adderall sales declined 32% to $102 million as it faced competition from a generic version released in the second quarter of 2012.
In the third quarter, the company also approved a $500 million share buy-back program, which it said will not impede its organic growth and acquisition strategy.
Find more international stocks that are trading for their lowest prices in 52 weeks and are owned by Gurus here.
Stocks Discussed: DCM, BIDU, BSBR, SHPG,