RS Investment Management (Trades, Portfolio) invests in public equity and fixed income markets across the world, as well as both growth and value stocks. In March, the firm launched an emerging markets small-cap fund for both retail and institutional share classes.
The privately held San Francisco-based investment firm provides services for pension and profit-sharing plans, pooled investment vehicles, corporations, and banks. Matthew H. Scanlon, a graduate of Northwestern’s Kellog School of Management, is the firm’s CEO. RS Investment’s total assets are almost $27 billion.
Web Page:http://www.rsinvestments.com/
The following companies, Yahoo! Inc (YHOO), Newpark Resources Inc (NR), Petroleo Brasileiro SA Petrobras (PBR), Reinsurance Group of America Inc (RGA), Murphy Oil Corp (MUR), are the stocks in its portfolio that are currently trading at low P/E ratio and that have the most growing EBITDA.
Yahoo! Inc (YHOO)
The company is a global technology company. It offers search, content and communication on mobile phone, tablet or desktop. Advertisers can build their businesses through advertising to targeted audiences on its online properties and services (Yahoo! Properties) and a distribution network of third party entities who integrate its advertising offerings into their websites or other offerings.
YHOO has a market cap of $41.84 billion and is currently trading at P/E (ttm) of 6.00 that is ranked higher than 98% of the 605 companies in the Global Internet Content & Information industry.
At current price, based on DCF model, YHOO fair value is $212.37, and these days the stock is trading with a margin of safety of 79%, while for the Peter Lynch earnings line the fair value is set to $17.1 so the stock looks overpriced by 160%.
The price rose by 23% over the last 12 months.
Over the last five years, the company's revenue dropped by 0.20%, EBITDA grew by 53.4% and EPS growth rate is 61.80% (+487% since the last 12 months). YHOO has positive returns (32.95% of ROE, 22.24% of ROA and 8.66% of ROC) and an average financial strength, rated 5/10.
First Pacific Advisors is the main Guru holding YHOO with 0.41% of shares outstanding, followed by Pioneer Investments (0.23%) and David Einhorn (0.22%).
Newpark Resources Inc (NR)
The company is an oil and gas industry supplier providing products and services mainly to the oil and gas exploration and production industry serving customers in North America, Europe, the Middle East and Africa, Latin America and Asia Pacific regions.
NR has a market cap of $ 874.32 million and is currently trading at P/E (ttm) of 9.90 and NR's P/E(ttm) is ranked higher than 89% of the 601 companies in the global oil and gas equipment and services industry.
At current price, based on DCF model, NR fair value is $ 12.24, and these days the stock is trading with a margin of safety of 15%.
The price dropped by 13% over the last 12 months.
Over the last five years, the company's revenue rose by 13.40%, EBITDA grew by 40.40% and Book Value Growth rate is 12.50%. NR has positive returns (16.92% of ROE, 10.34% of ROA and 20.86% of ROC) and an average financial strength, rated 4/10.
BlackRock Inc. is the main Guru holding NR with 9.26% of shares outstanding, followed by Dimensional Fund Advisors Lp (8.34%) and Wells Fargo & Company/Mn (8.14%).
Petroleo Brasileiro SA Petrobras (PBR)
The company began operations in 1954 and has been carrying out crude oil and natural gas production and refining activities in Brazil on behalf of the government. The company operates as an integrated oil and gas company in Brazil and internationally.
PBR has a market cap of $ 57.13 billion and is currently trading at P/E (ttm) of 7.80 and PBR's P/E(ttm) is ranked higher than 97% of the 270 companies in the Global Oil and Gas Integrated industry. .
At current price, based on DCF model, PBR fair value is $14.08, and these days the stock is trading with a margin of safety of 40% and the Peter Lynch earnings line Fair Value is set to $22.0 with a current margin of safety of 60%.
The price dropped by 37% over the last 12 months.
Over the last 10 years, the growth rate of company's revenue is 11.50%, EBITDA grew by 5.50% and EPS growth rate is 3.50%. PBR has positive returns (6.23% of ROE, 2.78% of ROA and 5.58% of ROC) and good financial strength, rated 7/10, ranked higher the 80% of other competitors.
Dimensional Fund Advisors Lp is the main Guru holding PBR with 0.5% of shares outstanding, followed by Macquarie Group Ltd (0.25%) and Credit Suisse Ag. (0.23%)
Reinsurance Group of America Inc (RGA)
The company is engaged in the reinsurance of individual and group coverages for traditional life and health, longevity, disability income, asset-intensive and critical illness products, and financial reinsurance.
RGA has a market cap of $ 6.42 billion and is currently trading at P/E (ttm) of 9.50 and RGA's P/E(ttm) is ranked higher than 83% of the 133 companies in the Global Insurance - Reinsurance industry.
At current price, based on DCF model, RGA fair value is $ 139.8, and these days the stock is trading with a margin of safety of 33% and even the Peter Lynch earnings line fair value ($156.7) gives a margin of safety of 40%.
The price rose by 21% over the last 12 months.
Over the last five years, the company's revenue rose by 9.70 %, EBITDA grew by 8.20% and EPS growth rate is 6.90%. RGA has positive returns (10.50% of ROE and 1.62% of ROA) and good financial strength, rated 7/10.
BlackRock Inc. is the main Guru holding RGA with 6.96% of shares outstanding, followed by FMR LLC (6.87%) and BlackRock Fund Advisors (2.89%).
Murphy Oil Corp (MUR)
The company is an oil and gas exploration and production company, with refining and marketing operations in the United Kingdom that are held for sale. The company is in the process of transitioning from an integrated oil company to an enterprise entirely focused on oil and gas exploration and production activities.
MUR has a market cap of $ 8.81 billion and is currently trading at P/E (ttm) of 9.80 and MUR's P/E(ttm) is ranked higher than 88% of the 1,327 companies in the Global Oil & Gas E&P industry.
At current price, based on DCF model, MUR fair value is $ 57.37, and these days the stock is trading with a margin of safety of 13% while the Peter Lynch earnings line, with a fair value of $19.6 says the company is overpriced by 158%.
The price dropped by 23% over the last 12 months.
Over the last five years, the company's revenue dropped by 28.20 %, EBITDA grew by 7.70% and EPS growth rate is 7.70%. MUR has positive returns (10.71% of ROE, 5.17% of ROA and 10.46% of ROC) and good financial strength, rated 7/10.
Mason Hawkins is the main Guru holding MUR with 11% of shares outstanding, followed by BlackRock Inc. (6.46%) and Price T Rowe Associates Inc /MD/ (5.73%).
