Richard Aster is the founder of Aster Investment Management Company and he manages both Meridian Value Fund and Meridian Growth Fund. According to GuruFocus the hedge funds have a total value of $2,681 million and the following are the top 5 of the 149 stocks of the portfolio that are trading with a wide margin of safety according to the DCF calculator and with a a low P/E ratio.
Baxter International Inc.
Baxter International Inc. (BAX, Financial) is trading at about $35.6 with a trailing 12-month P/E multiple of 8.94 and an estimated forward P/E multiple of 24.39. Over the last 10 years, the stock has risen by 69%. During the last 52 weeks the price has been as high as $43.44 and as low as $32.18.
The DCF model gives a fair value of $61.69 that puts the stock as undervalued with a margin of safety of 43% at current prices. The Peter Lynch earnings line suggests a smaller margin of safety, giving a fair price of $49.0.
The company is a healthcare company. It is engaged in the development, manufacture and sale of products that save and sustain the lives of people with hemophilia, immune disorders, infectious diseases, kidney disease, trauma and other chronic and acute medical conditions.
Baxter had a decrease of 6% for worldwide sales during the second quarter, but it reported a net of $1.00 per diluted share, which exceeded the guidance the company previously provided of 92 cents to 96 cents per diluted share.
Baxter's leading shareholder among the gurus is Daniel Loeb (Trades, Portfolio) with 9.87% of outstanding shares, followed by Richard Pzena (Trades, Portfolio) with 0.92% and Tweedy Browne (Trades, Portfolio) with 0.47%.
Compass Minerals International Inc.
Compass Minerals International Inc. (CMP, Financial)Â is trading at about $83.06 with a trailing 12-month P/E multiple of 11.59 and an estimated forward P/E multiple of 13.70. Over the last 10 years, the stock has risen by 273%, and during the last 52 weeks the price has been as high as $95.68 and as low as $77.13.
The DCF model gives a fair value of $154.27 that puts the stock as undervalued with a margin of safety of 46% at current prices. The Peter Lynch earnings line suggests a smaller margin of safety, giving a fair price of $104.9.
The company is a producer of minerals, including salt, sulfate of potash specialty fertilizer ("SOP") and magnesium chloride. Compass Minerals International has two reportable segments: salt and specialty fertilizer.
During the last quarter the company had the strong commercial and operational performance across both businesses with record-setting earnings, which salt segment earnings set second-quarter record. Net income was up by 200% from 2014 adjusted results and operating earnings increased by 79%.
Pioneer Investments (Trades, Portfolio) with 0.88% of outstanding shares is the company's leading shareholder among the gurus, followed by Chuck Royce (Trades, Portfolio) with 0.54% and Jim Simons with 0.51%.
World Fuel Services Corp.
World Fuel Services Corp. (INT) is trading at about $37.68 with a trailing 12-month P/E multiple of 12.99 and an estimated forward P/E multiple of 13.50. Over the last 10 years, the stock has risen by 146%, and during the last 52 weeks the price has been as high as $58.50 and as low as $33.83.
The DCF model gives a fair value of $71.4 that puts the stock as undervalued with a margin of safety of 47% at current prices. The Peter Lynch earnings line suggests a smaller margin of safety, giving a fair price of $45.8.
The company is a fuel logistics company involved in the marketing and sale of marine, aviation and land fuel products and related services. It has three reportable operating business segments: Marine, Aviation and Land. It reported 42 cents diluted earnings per share for the second quarter of year compared to.68 cents diluted earnings per share in the second quarter of 2014 but despite the decline in consolidated earnings, its balance sheet has strengthened and it generated $71 million of cash flow from operations.
The company's leading shareholder among the gurus is PRIMECAP Management (Trades, Portfolio) which holds 0.68% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 0.60% and James Barrow (Trades, Portfolio) with 0.54%.
FMC Technologies Inc.
FMC Technologies Inc. (FTI) is trading at about $32.76 with a trailing 12-month P/E multiple of 13.00 and an estimated forward P/E multiple of 18.45. Over the last 10 years, the stock has risen by 288%, and during the last 52 weeks the price has been as high as $57.87 and as low as $27.94.
The DCF model gives a fair value of $72.02 that puts the stock as undervalued with a margin of safety of 55% at current prices. The Peter Lynch earnings line suggests a smaller margin of safety, giving a fair price of $41.6.
The company is a provider of technology solutions for the energy industry. It designs, manufactures and services technologically sophisticated systems and products. The company reports its results of operations in the following reporting segments; Subsea Technologies, Surface Technologies and Energy Infrastructure.
For the third quarter, due to the continued decline in the North American land market and the negative impact of the strengthening U.S. dollar in the Subsea Technologies segment, revenue decreased by 22% from the prior-year quarter primarily. Total operating profit was up by 4% year over year and operating margins were 16.9%.
Investor Frank Sands (Trades, Portfolio) is the company's leading shareholder among the gurus with 8.62% of outstanding shares. The second is the hedge fund First Eagle Investment (Trades, Portfolio) with 2.18%, followed by Meridian Funds (Trades, Portfolio) with 0.29% .
CA Inc.
CA Inc. (CA) is trading at about $27.71 with a trailing 12-month P/E multiple of 14.56 and an estimated forward P/E multiple of 11.76. Over the last 10 years, the stock did not face any change and during the last 52 weeks the price has been as high as $33.42 and as low as $25.16.
The DCF model gives a fair value of $51.81 that puts the stock as undervalued with a margin of safety of 47% at current prices. The Peter Lynch earnings line suggests the company is fairly valued giving a fair price of $27.4.
CA Inc. is a provider of enterprise information technology (IT) software and solution. It develops and delivers software and services that help organizations manage and secure their IT infrastructures and deliver more flexible IT services. The company organizes its offerings into three operating segments namely Mainframe Solutions, Enterprise Solutions and Services operating segments.
During the last quarter CA Inc. reported a 118% increase in revenue compared to the second quarter of 2014. The additional $11.9 million Roche revenue at 100% margin made growth in gross profit and margin in which gross profit increased by $11.4 million and resulted a gross margin of 58.2%, compared to gross margin of 27.4% for the same quarter of a year before.
James Barrow (Trades, Portfolio) is the company's leading shareholder among the gurus, and he holds 1.98% of outstanding shares, followed by Brian Rogers (Trades, Portfolio) with 0.6% and Joel Greenblatt (Trades, Portfolio) with 0.52%.
