Ford, General Motors Among Stocks Trading With Low PS Ratio

Stock ideas that present an interesting chance to buy

Author's Avatar
Feb 02, 2016
Article's Main Image

According to GuruFocus' All-in-One Screener, the following are the stocks that are companies with a market cap above $5 billion that are trading with a very low P/S ratio.

ArcelorMittal SAĂ‚ (MT) is trading at about $3.8 with a P/S ratio of 0.10 and an estimated forward P/E multiple of 5.44. The company has a market cap of $6.29 billion and over the last 10 years, the stock has dropped by 89%. During the last 52 weeks, the price has been as high as $11.95 and as low as $3.25.

It is a steel and mining company. The company has six reportable segments corresponding to continuing operations: Flat Carbon Americas; Flat Carbon Europe; Long Carbon Americas and Europe; AACIS; Distribution Solutions; and Mining.

Jim Simons (Trades, Portfolio) is the largest shareholder of the company among the gurus with 0.11% of outstanding shares.

AmerisourceBergen Corp. (ABC) is trading at about $90 with a P/S ratio of 0.14 and an estimated forward P/E multiple of 13.61. The company has a market cap of $18.54 billion and over the last 10 years, the stock has risen by 325%. During the last 52 weeks, the price has been as high as $120.68 and as low as $89.68.

It is a pharmaceutical sourcing and distribution services company. It serves healthcare providers and pharmaceutical manufacturers in the pharmaceutical supply channel and provides drug distribution and related services designed to reduce costs and improve patient outcomes.

The company’s largest shareholder among the gurus is Jim Simons (Trades, Portfolio) with 0.38% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.05%, John Keeley (Trades, Portfolio) with 0.03%, Ray Dalio (Trades, Portfolio) with 0.02% and Jeremy Grantham (Trades, Portfolio) with 0.02%.

Anthem Inc. (ANTX) is trading at about $43 with a P/S ratio of 0.16, a trailing 12-month P/E multiple of 12.81 and an estimated forward P/E multiple of 3.82. During the last 52 weeks, the price has been as high as $54.78 and as low as $43.55.

The DCF model gives a fair value of $160.28 putting the stock as undervalued with a margin of safety of 73% at current prices. The Peter Lynch earnings line suggests a bigger margin of safety, giving a fair price of $156.

The company offers a spectrum of network-based managed care plans to the large and small employer, individual, Medicaid and senior markets.

HP Inc. (HPQ) is trading at about $9.62 with a P/S ratio of 0.17, a trailing 12-month P/E multiple of 3.95 and an estimated forward P/E multiple of 5.65. The company has a market cap of $17.24 billion and over the last 10 years, the stock has dropped by 32%. During the last 52 weeks, the price has been as high as $17.66 and as low as $9.24.

The DCF model gives a fair value of $26.54, putting the stock as undervalued with a margin of safety of 64% at current prices. The Peter Lynch earnings line suggests a bigger margin of safety, giving a fair price of $37.

The company is a provider of products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses (SMBs) including customers in the government, health and education sectors.

The company’s largest shareholder among the gurus is Dodge & Cox with 10.97% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 2.43%, Richard Pzena (Trades, Portfolio) with 1.07%, HOTCHKIS & WILEY with 0.84% and First Eagle Investment (Trades, Portfolio) with 0.35%.

Energy Transfer Equity LPĂ‚ (ETE) is trading at about $8.80 with a P/S ratio of 0.21, a trailing 12-month P/E multiple of 11.32 and an estimated forward P/E multiple of 6.88. The company has a market cap of $9.25 billion, and over the last 10 years the stock has risen by 56%. During the last 52 weeks, the price has been as high as $35.44 and as low as $6.60.

The DCF model gives a fair value of $6.46 putting the stock overpriced by 37%. The Peter Lynch earnings line suggests the stock is undervalued, giving a fair price of $10.5.

The company is a publicly traded partnership, which owns the general partner of Energy Transfer Partners L.P., a limited partnership company, which through its wholly owned subsidiaries, owns and operates, natural gas gathering systems, natural gas intrastate pipeline systems and gas processing plants.

The company’s largest shareholder among the gurus is Richard Perry (Trades, Portfolio) with 0.38% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.19%, John Burbank (Trades, Portfolio) with 0.02%, Andreas Halvorsen (Trades, Portfolio) with 0.01% and Ron Baron (Trades, Portfolio) with 0.01%.

Marathon Petroleum Corp. (MPC) is trading at about $39 with a P/S ratio of 0.28, a trailing 12-month P/E multiple of 6.35 and an estimated forward P/E multiple of 7.11. The company has a market cap of $21.24 billion and over the last 10 years, the stock has risen by 104%. During the last 52 weeks, the price has been as high as $60.38 and as low as $38.95.

The DCF model gives a fair value of $67.74, putting the stock as undervalued with a margin of safety of 41% at current prices. The Peter Lynch earnings line suggests a bigger margin of safety, giving a fair price of $90.6.

The company is a marketer, transporter and transporter of petroleum product refiners in the U.S. The company owns and operates seven refineries, all located in the U.S., with an aggregate crude oil refining capacity of approximately 1.7 mmbpcd.

James Barrow (Trades, Portfolio) is the largest shareholder of the company among the gurus with 2.08% of outstanding shares, followed by Alan Fournier (Trades, Portfolio) with 0.79%, John Griffin (Trades, Portfolio) with 0.66% and Pioneer Investments (Trades, Portfolio) with 0.33%.

KT Corp. (KT) is trading at about $11.30 with a P/S ratio of 0.29, a trailing 12-month P/E multiple of 18.02 and an estimated forward P/E multiple of 9.40. The company has a market cap of $5.95 billion and over the last 10 years, the stock has dropped by 46%. During the last 52 weeks, the price has been as high as $14.90 and as low as $5.37.

The DCF model gives a fair value of $2.96, putting the stock overpriced by 285%. The Peter Lynch earnings line suggests the stock is less overpriced, giving a fair price of $9.1.

The company is an integrated provider of telecommunications services. Its services include mobile service, fixed-line telephone services, Internet services including broadband Internet access service and data communication service.

The company’s largest shareholder among the gurus is Sarah Ketterer (Trades, Portfolio) with 0.01% of outstanding shares.

ManpowerGroup (MAN) is trading at about $74 with a P/S ratio of 0.30, a trailing 12-month P/E multiple of 14.11 and an estimated forward P/E multiple of 11.61. The company has a market cap of $5.45 billion and over the last 10 years, the stock has risen by 38%. During the last 52 weeks, the price has been as high as $96.87 and as low as $63.57.

The DCF model gives a fair value of $56.29, putting the stock overpriced by 32%. The Peter Lynch earnings line suggests the stock is undervalued giving a fair price of $78.

The company develops solutions that drive organizations forward, accelerate individual success and help build more sustainable communities

Larry Robbins (Trades, Portfolio) is the largest shareholder among the gurus with 8.2% of outstanding shares, followed by Chuck Royce (Trades, Portfolio) with 1.35%, Pioneer Investments (Trades, Portfolio) with 0.7%, HOTCHKIS & WILEY with 0.51% and Joel Greenblatt (Trades, Portfolio) with 0.21%.

General Motors Co. (GM) is trading at about $29 with a P/S ratio of 0.32, a trailing 12-month P/E multiple of 10.67 and an estimated forward P/E multiple of 4.91. The company has a market cap of $45.46 billion and over the last 10 years, the stock has dropped by 15%. During the last 52 weeks, the price has been as high as $39 and as low as $24.62.

The company designs, builds and sell cars, trucks and automobile parts. The company also provides automotive financing services through General Motors Financial Company.

The company’s largest shareholder among the gurus is Warren Buffett (Trades, Portfolio) with 3.21% of outstanding shares, followed by David Einhorn (Trades, Portfolio) with 1.05%, HOTCHKIS & WILEY with 0.97%, David Tepper (Trades, Portfolio) with 0.83% and Bill Nygren (Trades, Portfolio) with 0.5%.

Ford Motor Co. (F) is trading at about $11.85 with a P/S ratio of 0.33, a trailing 12-month P/E multiple of 9.99 and an estimated forward P/E multiple of 5.92. The company has a market cap of $47.03 billion and over the last 10 years, the stock has risen by 37%. During the last 52 weeks, the price has been as high as $16.74 and as low as $10.44.

The DCF model gives a fair value of $12.73, putting the stock as undervalued with a margin of safety of 7% at current prices. The Peter Lynch earnings line suggests a bigger margin of safety, giving a fair price of $15.3.

James Barrow (Trades, Portfolio) is the largest shareholder of the company among the gurus with 2.03% of outstanding shares, followed by Richard Pzena (Trades, Portfolio) with 0.46%, Ken Heebner (Trades, Portfolio) with 0.19% and NWQ Managers (Trades, Portfolio) with 0.14%.