5 Tech Stocks Trading With Low Price-Earnings Ratios

Ebix on the list

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Oct 21, 2020
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As of Oct. 21, the GuruFocus All-in-One Screener, a Premium feature, found that the following technology companies have low price-earnings ratios and are owned 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.

Huami

With a market cap of $740.92 million, Huami Corp. (HMI) has a price-earnings ratio of 12.34 and a price-book ratio of 2.03. According to the DCF calculator, the stock has a fair value of $10.37 while trading at $11.96.

The stock has gained 32.89% over the last 12 months and is now 34.32% below the 52-week high and 40.38% above the 52-week low.

The biometric and activity data-driven company has a GuruFocus profitability rating of 5 out of 10. The return on equity of 18.41% and return on assets of 9.43% are outperforming 86% of companies in the hardware industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 2.83 is below the industry median of 1.31.

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Jim Simons (Trades, Portfolio)' Renaissance Technologies is the company's largest guru shareholder with 0.83% of outstanding shares, followed by Caxton Associates (Trades, Portfolio) with 0.02%.

ChipMOS TECHNOLOGIES

With a $731.56 billion market cap, ChipMOS TECHNOLOGIES Inc. (IMOS) is trading with a price-earnings ratio of 7.17 and a price-book ratio of 1.06. According to the DCF calculator, the stock has a fair value of $28.62 while trading at $20.12.

The share price was stable over the past 12 months and is now 18.97% below the 52-week high and 34.13% above the 52-week low.

The company, which provides semiconductor testing and packaging solutions, has a GuruFocus profitability rating of 6 out of 10. The return on assets of 8.69% is outperforming 79% of companies in the semiconductors industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.59 is below the industry median of 1.43.

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With 4.45% of outstanding shares, Simons' firm is the company's largest guru shareholder.

Ebix

With a market cap of $591.98 million, Ebix Inc. (EBIX) is trading with a price-earnings ratio of 6.47. According to the DCF calculator, the stock has a fair value of $46.14 while trading at $19.15.

Shares have lost 51% over the last 12 months and are now 56.86% below the 52-week high and 118.86% above the 52-week low.

The company, which provides enterprise cloud e-commerce solutions, has a GuruFocus profitability rank of 9 out of 10. The company's return on equity of 16.84% and return on assets of 5.76% are outperforming 67% of competitors in the software industry. Its financial strength is rated 4 out of 10 with a cash-debt ratio of 0.15 that is far below the industry median of 2.14.

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Chuck Royce (Trades, Portfolio) is the company's largest guru shareholder with 1.29% of outstanding shares, followed by HOTCHKIS & WILEY with 0.75%.

VirnetX

VirnetX Holding Corp. (VHC) has a market cap of $414.27 million and is trading with a price-earnings ratio of 1.48 and a price-book ratio of 1.77. According to the DCF calculator, the stock has a fair value of $42.38 while trading at $5.83.

Shares have risen 10% over the last 12 months and are now trading 25.16% below the 52-week high and 104.56% above the 52-week low.

The company, which operates in the business of commercializing patents, has a GuruFocus profitability rating of 2 out of 10. The return on equity of 249.98% and return on assets of 186.94% are outperforming 99% of companies in the software industry. Its financial strength is rated 10 out of 10 with no debt.

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With 0.04% of outstanding shares, Paul Tudor Jones (Trades, Portfolio) is the company's largest guru shareholder.

Viomi

Viomi Technology Co. Ltd. (VIOT) has a market cap of $408.04 million. Its shares are trading with a price-earnings ratio of 15.65. According to the DCF calculator, the stock has a fair value of $4 while trading at $5.85.

Shares have decreased 29% over the past 12 months and are currently trading 45.83% below the 52-week high and 39.29% above the 52-week low.

The provider of Internet of Things (IoT) products has a GuruFocus profitability rating of 4 out of 10. The return on equity of 14.22% and return on assets of 7.12% are outperforming 78% of competitors in the hardware industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 43.77 is far above the industry median of 1.31.

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The company's largest guru shareholder is Renaissance Technologies with 1.05% of outstanding shares.

Disclosure: I do not own any stocks mentioned.

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