As of Wednesday, April 22, the GuruFocus All-in-One Screener, a Premium feature, found that the following utility 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.
Simon Property Group
With a market cap of $16.37 billion, Simon Property Group Inc. (SPG) has a price-earnings ratio of 7.86. According to the DCF calculator, the stock has a fair value of $161.10 while trading at $53.56.
The stock has lost 69.67% over the last 12 months and is now 70.25% below the 52-week high and 26.77% above the 52-week low.
The second-largest American real estate investment trust has a GuruFocus profitability rating of 9 out of 10. The return on equity of 71.72% and return on assets of 6.68% are outperforming 81% of companies in the REITs industry. Its financial strength is rated 3 out of 10. The cash-debt ratio of 0.03 is below the industry median of 0.06.
The company’s largest guru shareholder is Barrow, Hanley, Mewhinney & Strauss with 0.68% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.41% and Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.18%.
Brookfield Property Partners
With a $8.11 billion market cap, Brookfield Property Partners LP (BPY) is trading with a price-earnings ratio of 4.78. According to the DCF calculator, the stock has a fair value of $20.33 while trading at $8.47.
The share price has declined 59.22% over the past 12 months and is now 59.97% below the 52-week high and 19.30% above the 52-week low.
The company, which owns commercial properties in North America, Europe, Australia and Brazil, has a GuruFocus profitability rating of 7 out of 10. The return on equity of 71.72% and return on assets of 6.68% are outperforming 81% of companies in the real estate industry. Its financial strength is rated 3 out of 10. The cash-debt ratio of 0.03 is below the industry median of 0.26.
Simons’ firm is the company’s largest guru shareholder with 0.07% of outstanding shares.
Host Hotels & Resorts
With a market cap of $7.45 billion, Host Hotels & Resorts Inc. (HST) is trading with a price-earnings ratio of 8.38 and a price-book ratio of 1.04. According to the DCF calculator, the stock has a fair value of $13.48 while trading at about $10.56.
Shares have tumbled 44.17% over the last 12 months and are now 47.17% below the 52-week high and 34.44% above the 52-week low.
The company has a GuruFocus profitability rank of 6 out of 10. The company's return on equity of 12.34% and return on assets of 7.34% are outperforming 80% of competitors in the REITs industry. The cash-debt ratio of 0.36 is above the industry median of 0.06.
The company’s largest guru shareholder is Simons’ firm with 0.67% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.25% and Chris Davis (Trades, Portfolio) with 0.09%.
Vornado Realty Trust
Vornado Realty Trust (VNO) has a market cap of $6.89 billion and is trading with a price-earnings ratio of 2.23. According to the DCF calculator, the stock has a fair value of $173.47 while trading at about $36.07.
Shares have declined 48.27% over the last 12 months and are now trading 48.80% below the 52-week high and 30.50% above the 52-week low.
The company has a GuruFocus profitability rating of 7 out of 10. The return on equity of 52.36% and return on assets of 17.64% are outperforming 94% of companies in the REITs industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.19 is close to the industry median of 0.06.
With 0.90% of outstanding shares, Paul Singer (Trades, Portfolio)’s Elliott Management is the company’s largest guru shareholder, followed by Third Avenue Management (Trades, Portfolio) with 0.30% and Davis with 0.10%.
Jones Lang LaSalle
Jones Lang LaSalle Inc. (JLL) has a market cap of $98.98 million. Its shares are trading with a price-earnings ratio of 9.37. According to the DCF calculator, the stock has a fair value of $102.84 while trading at $113.01.
Share prices have declined 36.52% over the past 12 months and are currently trading 44.56% below the 52-week high and 26.43% above the 52-week low.
The estate-related services provider has a GuruFocus profitability rating of 9 out of 10. The return on equity of 12.63% and return on assets of 4.62% are outperforming 71% of competitors in the real estate industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.17 is below the industry median of 0.26.
The company’s largest guru shareholder is Al Gore (Trades, Portfolio) with 9.26% of outstanding shares, followed by John Rogers (Trades, Portfolio) with 1.58% and Diamond Hill Capital (Trades, Portfolio) with 50%.
Equity Commonwealth
Equity Commonwealth (EQC) has a market cap of $4.03 billion. Its shares are trading with a price-earnings ratio of 8.49 and a price-book ratio of 1.34. According to the DCF calculator, the stock has a fair value of $41.63 while trading at $33.01.
Shares have increased 3.77% over the past 12-month period and are currently trading 5.55% below the 52-week high and 19.51% above the 52-week low.
The company has a GuruFocus profitability rating of 6 out of 10. The return on equity of 14.53% and return on assets of 13.69% are outperforming 87% of companies in the REITs industry. Its financial strength is rated 8 out of 10. The cash-debt ratio of 108.82 is far above the industry median of 0.06.
The company’s largest guru shareholder is Simons’ firm with 0.41% of outstanding shares, followed by Wallace Weitz (Trades, Portfolio) with 0.20%, Rogers with 0.08% and Pioneer Investments (Trades, Portfolio) with 0.05%.
Disclosure: I do not own any stocks mentioned.
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