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The Top 10 Undervalued Predictable Companies Trading at 52-Week Lows
Posted by: Dianne Tordillo (IP Logged)
Date: December 5, 2012 05:03PM

There are several companies, with a ranking of either four or five stars in GuruFocus’ Business Predictability that are trading at or close to their 52-week lows. Using the GuruFocus Undervalued Predictable Company Screener, the following stocks showed up as the results that meet the mentioned criteria, as they trade right at their lowest, or no more than about $2 from their lowest in one year.

Nicholas Financial Inc. (NICK)


Today, holding company Nicholas Financial Inc. is trading at $12.85, close to its 52-week low of $10.38, Nicholas’ price dipped down in early November, around the time the company declared the amount of its cash dividend that was dispersed Nov. 30. The stock is down almost 2 percent today, for morning trading. It is ranked 4 stars in Business Predictability.

Through branch offices, Nicholas Financial is a finance company that provides direct consumer loans and purchases installment sales contracts from automobile dealers in the Southeast and Midwest. It has been a publicly traded company since 1987, and has a market cap of $154 million.

With a dividend yield of 3.8 percent and a payout ratio of 0.26, Nicholas Financial made November’s list of Top 5 Undervalued Predictable Companies with the Highest Yields. Gurus who have holding of Nicholas Financial include Jim Simons and Tom Gayner (NICK: Guru Trades). To review its financial data, visit its 10-Year Financials.

MICROS Systems Inc. (MCRS)


Maryland-based MICROS Systems Inc. is trading at $41.96, close to its 52-week low of $42.30. It has a Business Predictability rank of 4 stars. The month of October started its downhill path to the stock’s one-year all-time low, while it traded as high as $58 only in May.

With a market cap of $3.49 billion, MICROS is an enterprise applications provider for the hospitality and retail industries. Thus far, it has installed more than 330,000 of its systems in table and quick service restaurants, hotels, motels, casino and retail operations in over 180 countries.

Recently, MICROS announced the succession plan for the company’s new executive member. Former Perot Systems (now, Dell Inc. (DELL)) president and CEO, Peter Altabef, will succeed MICROS’ president and CEO, Tom Giannopoulos starting Jan. 2, 2013. Giannopolous will continue working for the company until June 30, 2014 as executive chairman. According to the company’s Insider data, Giannopolous has not traded any company shares since February 2010.

Gurus such as Paul Tudor Jones, Bruce Kovner and Jim Simons presented MICROS as a new buy in the third quarter, joining several other Guru who have added to their stake (MCRS: Guru Trades). To view its financial data, visit 10-Year Financials

CEC Entertainment Inc. (CEC)


Texas-based CEC Entertainment Inc. is trading at $31.18 today, close to its 52-week low of $28.23. The company has a Business Predictability rank of 4.5 stars.

Parent company of large family dining and entertainment chain, Chuck E. Cheese’s, CEC Entertainment has built an empire of 562 restaurant locations in 48 U.S. states and eight foreign countries and territories, in the 30 years that it has been in operation. The company has a market cap of $559.8 million.

In its third quarter financial results, the company announced a 9 percent increase in their cash dividend, which was the highlight of the release. The news accompanied unfortunate news about the company experiencing a 1.7 percent decrease in total revenue, which were related to a decrease in store sales and offset by revenue used for the new locations it opened in the end of last year’s third quarter.

For the first nine months’ data, the company’s net income decreased 15.3 percent, reporting $8 million compared to $52.2 million for the previous year.

CEC has a dividend yield of 2.8 percent, and a dividend payout ratio of 0.31. Paul Tudor Jones, David Dreman and Jim Simons purchased shares of CEC in the third quarter, along with other Gurus (CEC: Guru Trades). View its latest financial standings in 10-Year Financials.

Republic Bancorp Inc. (RBCAA)


Republic Bancorp Inc. is trading at its 52-week low of $20.15. It has a Business Predictability rank of 5 stars.

With a market cap of $428.8 million, Republic is a large Kentucky-based, locally owned financial services provider, which operates 44 banking centers and serves as the parent company of Republic Bank & Trust Company and Republic Bank.

In November, Republic extended its shareholders a special cash dividend in addition to its regular quarterly dividend, representing the company’s strong capital levels. In a financial release, Republic’s CEO, Steve Trager, said the dividend was “not only a reward for the company’s past success, but also represents [his] confidence in the company’s future prospects.”

Republic has a dividend yield of 3.2 percent, and a dividend payout ratio of 0.12, making November’s list for Top 5 Undervalued Predictable Companies with the Highest Yields. View its holding history with Gurus at RBCAA: Holding History. To review Republic Bancorp’s financial data, visit its 10-Year Financials page.

FLIR Systems Inc. (FLIR)

FLIR Systems is trading at $19.79, close to its 52-week low of $17.99. Over the past year, FLIR has gradually slid down from an almost $27-high in the beginning of the year.

With a market cap of $3.06 billion, FLIR is involved in designing, manufacturing and marketing sensor systems using the company’s advanced thermal imaging and threat detection systems, and its clients make up a wide range of government entities.

In its third quarter financial results, it announced the acquisition of video surveillance systems company, Lorex Technology (LOXFF), along with a report of the company’s devastating revenue decreases in such divisions as commercial systems, thermal vision and measurement and government systems. Much of the decreases resulted from a backlog in delivery firm orders, reaching its highest level in three years.

Gurus such as Jim Simons, Joel Greenblatt and Chuck Royce own stake in FLIR, along with other investors (FLIR: Guru Trades). To view more of its financial data, visit 10-Year Financials.

Intel Corp. (INTC)


Intel Corp. is trading several cents away from its 52-week low, at $19.94. GuruFocus gives it a 4-star rating in Business Predictability.

With a market cap of $98.71 billion, Intel Corp. develops an expansive list of computing devices and technologies such as processors, Ethernet products, TVs, smart phones, tablets, motherboards, chipsets and more. It is currently trading at $19.90, close to its two-year low.

Intel is one of the undervalued predictable companies with the highest yields, according to November’s list. With a dividend payout ratio of 0.39, Intel’s diluted earnings per share over the years have undergone drastic increases, dispersing $0.77 in 2009, $2.01 in 2010 and $2.39 in 2011.

In its third quarter news release, Intel announced generating about $5.1 billion in cash from operations, paying $1.1 billion in dividends and $1.2 billion to repurchase stock.

Gurus who have holding of Intel include Meridian Funds, Louis Moore Bacon and Joel Greenblatt (INTC: Guru Trades). To review its financial data, visit 10-Year Financials.

Monro Muffler/Brake Inc. (MNRO)


Today, Monro Muffler/Brake is trading at $32.03, near its 52-week low of $30.72. It has a Business Predictability rank of 4 stars.

Headquartered in Rochester, N.Y., Monro has a market cap of $1.06 billion and operates more than 800 stores in 19 states, according to its website. It services include tire, repair and auto maintenance.

On Dec. 4, the company announced to accelerate the payment date for its $0.10 per share regular quarterly cash dividend so that the dividend can be combined with the company’s third quarter dividend in December at the same amount. Altogether, the dividend of $0.20 per share will be paid to shareholders on Dec. 21.

Monro has a dividend yield of 1.3 percent and a payout ratio of 0.27. Gurus Chuck Royce, Chuck Akre and Mario Gabelli have holding of Monro (MNRO: Guru Trades). Views its financial data on 10-Year Financials.

Kohl’s Corp. (KSS)


Ranked 4 stars in Business Predictability, large family clothing retailer Kohl’s is trading at $44.04, close to its 52-week low of $42.72.

Throughout the last 52-weeks, Kohl’s price lacked consistency in trend line, teetering from drastic highs to lows every several months. At the end of November, it dropped almost $10 in a week.

Headquartered Wisconsin, Kohl’s operates 1,146 department stores in 49 states, offering value-oriented deals for its national brand apparel, shoes, accessories, beauty and home products. It has a market cap of $10.47 billion.

For the third quarter, Kohl’s reported a share increase of 14 percent in diluted earnings. Today, the company plans to pay $0.32 per share to its shareholders.

The company declared a 4.9 percent total sales decrease for the month of November alone, compared to a 5.6 percent decrease at the same time last year. Year to date, total sales increased by 0.4 percent, compared to the same time last year.

Richard Pzena, Jean-Marie Eveillard and Ken Fisher are some Gurus who have holding of Kohl’s, along with many others (KSS: Guru Trades). To view the company’s financial data, visit 10-Year Financials.

John Wiley & Sons Inc. (JW.A, JW.B)

Global publisher, John Wiley & Sons (or Wiley) trades under two stocks, which are both near their 52-week lows. JW.A is trading at $42.11 near its 52-week low of $40.62, while JW.B is trading at $42 near its 52-week low of $41.06. They are ranked 4 stars and 4.5 stars in Business Predictability, respectively.

A company with a $2.54 billion market cap, Wiley has been in business for more than 200 years, publishing an expansive list of works including scholarly journals, encyclopedia, books and online products. It covers all categories, including literature, economics, physiology, medicine, physics, chemistry and peace.

In September, the company reported its first quarter 2013 fiscal year results, experiencing a 4 percent decrease in revenue compared to the previous year’s quarter.

Much of Wiley’s fiscal results were impacted by time-related issues in producing journals, as well as the changes in student behavior as more transition to online book orders and rentals, as opposed to purchasing books from an actual store.

Wiley has a dividend yield of 2.3 percent and a payout ratio of 0.31. Chuck Royce, Pioneer Investments and James Barrow are some Gurus who have holdings of the stock. View both of the stocks’ 10-Year Financials here: JW.A Financials JW.B Financials

Bed Bath & Beyond Inc. (BBBY)


Bed Bath & Beyond is trading at $57.18, close to its 52-week low $55.58. It has a 4.5 star rating in Business Predictability.

Founded in 1971, BBBY operates a chain of retail stores under various names besides Bed Bath and Beyond: World Market, Cost Plus World Market, World Market Stores, Christmas Tree Shops, Harmon, Harmon Face Values, Home & More and buybuy BABY. The retailer operates more than 1,400 stores in the U.S., Canada and Mexico.

The company’s latest reported earnings update was in September for the company’s fiscal second quarter, announcing a quarterly net sales increase by 12.1 percent, a quarterly comparable store sales increase by 3.5 percent, and a declaration to continue with its expectation of turning its 2012 net earnings per diluted share to increase by “a high single digit, to a low double digit percentage range.”

Gurus who have holding of BBBY include Steven Cohen, Scott Black and Ray Dalio, among others (BBBY: Guru Trades). View more of BBBY in its 10-Year Financials.


About the GuruFocus Undervalued Predictable Company Screener


The GuruFocus Undervalued Predictable Premium Feature uses discounted cash flow and discounted earnings and applies them to the top-ranked predictable companies for calculating intrinsic values. It gives users the option to screen by country, market cap or sector, as well as the option to further organize the companies by enabling the download of a customizable spreadsheet containing the list.

GuruFocus’ long list of Premium Membership perks provides many opportunities to follow your favorite Gurus and stocks more closely. If you are not a Premium Member yet, we invite you for a 7-Day Free Trial.


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Re The Top 10 Undervalued Predictable Companies Trading at 52-Week Lows
Posted by: vgm (IP Logged)
Date: December 6, 2012 01:11PM

Dianne,

Thanks for the article.

I disagree about NICK. This stock has traded in a relatively tight range of $11.30 to $14.40 in the past 12 months and is currently around $13. The implication of your title is that it is in bargain territory, which is not the case. It could as easily be said it was trading near its 12-month high.


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