After greeting August at historic highs, the S&P 500 stock index eased a few percentage points by month’s end. Currently, the Shiller P/E ratio is 40% higher than the historical mean of 16.5. This implies a future annual return of just 2.2%. The Shiller P/E ratio is a better indicator of market valuation, as it more evenly incorporates fluctuations in company earnings due to market business cycles.
GuruFocus has also estimated that much higher returns may occur in global markets. For instance, Singapore has a projected annualized market return of 17.6%, followed by Spain at 14.1% and Italy at 13.9% (see how these projections were calculated here). Emerging markets promise still higher growth.
Though such high rates cannot continue indefinitely, many stocks now trade cheaply within foreign markets and may merit further research. The GuruFocus All-in-One screener produces many pages of stocks trading within 5% of their historic low price to book ratios (see the screener settings here).
The stocks trading closest to their historical low P/B ratio are: Compass Minerals International Inc. (CMP, Financial), Minerva S.A. (MRVSY, Financial), Concha y Toro Winery Inc. (VCO, Financial) and Indocement Tunggal Prakarsa Tbk (PITPY, Financial).
Compass Minerals International Inc. (CMP)
Compass Minerals International trades with a P/B ratio of 4.7, which is 0.21% above its historical low P/B ratio of 4.69. The stock price is at $73 per share.
Compass Minerals’ price and P/B ratio history:
Compass Minerals is a provider of mineral products used in highway deicing, food, water care, animal nutrition, potash fertilizer and other products in the U.S., Canada, UK, South America and the Pacific Rim. It debuted on the New York Stock Exchange in December 2003.
Compass Minerals International Inc. has a market cap of $2.44 billion; its shares were traded at around $73.00 with a P/E ratio of 25.10 and P/S ratio of 2.40. The dividend yield of Compass Minerals International Inc. stocks is 2.90%. Compass Minerals International Inc. had an annual average earnings growth of 6.9% over the past 10 years.
The book value per share of Compass has grown at a rate of 61.6% annually over the past five years.
Minerva S.A. (MRVSY)
Minerva has a P/B ratio of 2.1, which is 0.48% above the historical low P/B ratio. Its stock price is $17.63 on Wednesday.
Minerva’s P/B and stock price history:
Minerva produces and sells beef, leather, live cattle exports and cattle byproducts from South America to roughly 100 countries, making it one of the three leading exporters in Brazil.
Minerva S.A. has a market cap of $646 million; its shares were traded with a P/S ratio of 0.40. The dividend yield of Minerva S.A. stocks is 1.40%.
Concha y Toro Winery Inc. (VCO)
Concha y Toro Winery has a P/B ratio of 1.59, which is 0.62% above its historical low P/B ratio. Its stock price is $36.30 on Wednesday, and its P/S ratio is also close to a 10-year low.
Concha’s price and P/B history:
Based in Chile, Concha y Toro is a purveyor of Chilean win, selling 30 million cases globally in 2012.
Concha Y Toro Winery Inc. has a market cap of $1.36 billion, with a P/E ratio of 23.00 and P/S ratio of 1.50. The dividend yield of Concha y Toro Winery Inc. stocks is 1.50%. Concha y Toro Winery Inc. had an annual average earnings growth of 4.3% over the past 10 years.
Its book value grew at a rate of 12% annually over the past five years.
Indocement Tunggal Prakarsa Tbk (PITPY)
Indocement Tunggal Prakarsa has a P/B ratio of 4.1, which is 0.73% above its historical low P/B. The stock price of Indocement on Wednesday is $20.91.
Indocement’s price and P/B ratio history:
Based in Indonesia, Indocement is a producer of quality cement and specialty cement products, with the brand name Tiga Roda.
Indocement Tunggal Prakarsa Tbk has a market cap of $7.7 billion; its shares were traded at around $20.91 with a P/E ratio of 16.80 and P/S ratio of 4.70. The dividend yield of Indocement Tunggal Prakarsa Tbk stocks is 1.60%. Indocement Tunggal Prakarsa Tbk had an annual average earnings growth of 21.4% over the past five years.
The company’s book value per share grew at an annual rate of 22.7% over the past five years.
To see more international stocks at historical low P/B ratios, try the all-in-one screener. Interested in GuruFocus Premium Membership? Try it free for 7 days.
GuruFocus has also estimated that much higher returns may occur in global markets. For instance, Singapore has a projected annualized market return of 17.6%, followed by Spain at 14.1% and Italy at 13.9% (see how these projections were calculated here). Emerging markets promise still higher growth.
Though such high rates cannot continue indefinitely, many stocks now trade cheaply within foreign markets and may merit further research. The GuruFocus All-in-One screener produces many pages of stocks trading within 5% of their historic low price to book ratios (see the screener settings here).
The stocks trading closest to their historical low P/B ratio are: Compass Minerals International Inc. (CMP, Financial), Minerva S.A. (MRVSY, Financial), Concha y Toro Winery Inc. (VCO, Financial) and Indocement Tunggal Prakarsa Tbk (PITPY, Financial).
Compass Minerals International Inc. (CMP)
Compass Minerals International trades with a P/B ratio of 4.7, which is 0.21% above its historical low P/B ratio of 4.69. The stock price is at $73 per share.
Compass Minerals’ price and P/B ratio history:
Compass Minerals is a provider of mineral products used in highway deicing, food, water care, animal nutrition, potash fertilizer and other products in the U.S., Canada, UK, South America and the Pacific Rim. It debuted on the New York Stock Exchange in December 2003.
Compass Minerals International Inc. has a market cap of $2.44 billion; its shares were traded at around $73.00 with a P/E ratio of 25.10 and P/S ratio of 2.40. The dividend yield of Compass Minerals International Inc. stocks is 2.90%. Compass Minerals International Inc. had an annual average earnings growth of 6.9% over the past 10 years.
The book value per share of Compass has grown at a rate of 61.6% annually over the past five years.
Minerva S.A. (MRVSY)
Minerva has a P/B ratio of 2.1, which is 0.48% above the historical low P/B ratio. Its stock price is $17.63 on Wednesday.
Minerva’s P/B and stock price history:
Minerva produces and sells beef, leather, live cattle exports and cattle byproducts from South America to roughly 100 countries, making it one of the three leading exporters in Brazil.
Minerva S.A. has a market cap of $646 million; its shares were traded with a P/S ratio of 0.40. The dividend yield of Minerva S.A. stocks is 1.40%.
Concha y Toro Winery Inc. (VCO)
Concha y Toro Winery has a P/B ratio of 1.59, which is 0.62% above its historical low P/B ratio. Its stock price is $36.30 on Wednesday, and its P/S ratio is also close to a 10-year low.
Concha’s price and P/B history:
Based in Chile, Concha y Toro is a purveyor of Chilean win, selling 30 million cases globally in 2012.
Concha Y Toro Winery Inc. has a market cap of $1.36 billion, with a P/E ratio of 23.00 and P/S ratio of 1.50. The dividend yield of Concha y Toro Winery Inc. stocks is 1.50%. Concha y Toro Winery Inc. had an annual average earnings growth of 4.3% over the past 10 years.
Its book value grew at a rate of 12% annually over the past five years.
Indocement Tunggal Prakarsa Tbk (PITPY)
Indocement Tunggal Prakarsa has a P/B ratio of 4.1, which is 0.73% above its historical low P/B. The stock price of Indocement on Wednesday is $20.91.
Indocement’s price and P/B ratio history:
Based in Indonesia, Indocement is a producer of quality cement and specialty cement products, with the brand name Tiga Roda.
Indocement Tunggal Prakarsa Tbk has a market cap of $7.7 billion; its shares were traded at around $20.91 with a P/E ratio of 16.80 and P/S ratio of 4.70. The dividend yield of Indocement Tunggal Prakarsa Tbk stocks is 1.60%. Indocement Tunggal Prakarsa Tbk had an annual average earnings growth of 21.4% over the past five years.
The company’s book value per share grew at an annual rate of 22.7% over the past five years.
To see more international stocks at historical low P/B ratios, try the all-in-one screener. Interested in GuruFocus Premium Membership? Try it free for 7 days.
