5 Insurance Companies Trading with Low Price-Sales Ratio

Selective Insurance Group makes the list

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Apr 07, 2021
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According to the GuruFocus All-In-One Screener, a Premium feature, the following companies providing insurance services were trading with low price-sales ratios as of April 7.

Selective Insurance Group

Shares of Selective Insurance Group Inc. (SIGI) were trading around $74.61 with a price-sales ratio of 1.54 and a price-earnings ratio of 18.29.

The U.S. regional property-casualty insurer has a $4.48 billion market cap. The share price has risen at an annualized rate of 16.28% over the past decade.

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The discounted cash flow calculator gives the stock a fair value of $171.85, suggesting it is undervalued with a 56.58% of margin of safety.

The company's largest guru shareholder is Chuck Royce (Trades, Portfolio) with 0.29% of outstanding shares, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.05%.

The Hanover Insurance Group

On Wednesday, The Hanover Insurance Group Inc. (THG) was trading around $133.17 with a price-sales ratio of 1.05 and a price-earnings ratio of 13.97.

The company, which provides property and casualty insurance products and services, has a market cap of $4.84 billion. The stock has risen at an annualized rate of 13.38% over the past 10 years.

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The discounted cash flow calculator gives the stock a fair value of $393.62, suggesting it is undervalued with a 66.17% margin of safety.

With a 0.27% stake, Richard Pzena (Trades, Portfolio) is the company's largest guru shareholder, followed by Royce with 0.18% and HOTCHKIS & WILEY with 0.16%.

Kemper

Kemper Corp. (KMPR) was trading around $81.77 on Wednesday with a price-sales ratio of 1.05 and a price-earnings ratio of 13.30.

The company has a market cap of $5.36 billion. The stock has risen at an annualized rate of 11.34% over the past decade.

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The discounted cash flow calculator gives the stock a fair value of $136.87, suggesting it is undervalued with a 40.26% of margin of safety.

The company's largest guru shareholder is Royce with 0.22% of outstanding shares.

Enstar Group

Enstar Group Ltd. (ESGR) was trading around $250.54 with a price-sales ratio of 2.07 and a price-earnings ratio of 3.19.

The diversified insurance company has a market cap of $5.54 billion. The stock has risen at an annualized rate of 69.63% over the past decade.

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The discounted cash flow calculator gives the stock a fair value of $1,153.60, suggesting it is undervalued with a 78.28% of margin of safety.

With a 2.23% stake, HOTCHKIS & WILEY is the company's largest guru shareholder, followed by Diamond Hill Capital (Trades, Portfolio) with 1.09% and Simons' firm with 0.01%.

First American Financial

First American Financial Corp. (FAF) shares were trading around $58.66 with a price-sales ratio of 0.94.

The company has a $6.43 billion market cap. The share price has risen at an annualized rate of 15.60% over the past decade.

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The discounted cash flow calculator gives the stock a fair value of $258, suggesting it is undervalued with a 77.31% of margin of safety.

The company's largest guru shareholder is John Rogers (Trades, Portfolio) with 3.91% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.89% and Pioneer Investments (Trades, Portfolio) with 0.41%.

Disclosure: I do not own any stocks mentioned.

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