Undervalued Companies With Growing EPS

Atwood Oceanics and NeuStar have a wide margin of safety

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Apr 04, 2016
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Companies with growing EPS are often a good investment as they can return a very good profit to investors. Here is a selection of the most undervalued companies according to the DCF calculator that have a five-year growing EPS.

Atwood Oceanics Inc. (ATW)Â EPS grew by 11% over the last five years and according to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 95%.

Atwood Oceanics is an offshore drilling contractor, engaged in drilling and completion of exploratory and developmental oil and gas wells.

The stock is trading with a PE ratio of 1.40, and has been as high as $35.66 and as low as $4.82 in the last 52 weeks. The price is currently -74.28% from its 52-week high and +90.25% from its 52-week low.

Arnold Van Den Berg (Trades, Portfolio) is the largest shareholder of the company among the gurus with 1.36% of outstanding shares, followed by David Dreman (Trades, Portfolio) with 0.4%, Jim Simons (Trades, Portfolio) with 0.26%, Barrow, Hanley, Mewhinney & Strauss with 0.18% and Paul Tudor Jones (Trades, Portfolio) with 0.08%.

Ever-Glory International Group Inc. (EVK)Â EPS grew by 15% over the last five years and according to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 92%.

Ever-Glory International Group is an apparel supply chain management provider, manufacturer, distributor and retailer based in China. Fourth quarter total sales had a 0.5% increase and total gross profit for the fourth quarter of 2015 increased by 9.1% year over year.

The stock is trading with a PE ratio of 1.96, and has been as high as $6.90 and as low as $1.35 in the last 52 weeks. The price is currently -74.20% from its 52-week high and +31.85% from its 52-week low.

World Acceptance Corp. (WRLD)Â EPS grew by 21% over the last five years and according to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 89%.

World Acceptance provides small-loan consumer finance companies, offering short-term small installment loans, medium-term larger installment loans, related credit insurance and ancillary products and services to individuals. During the fourth quarter, net income rose 32.95% and total revenue increased 23.2% year over year.

The stock is trading with a PE ratio of 3.17, and has been as high as $96.23 and as low as $25.30 in the last 52 weeks. The price is currently -60.59% from its 52-week high and +49.88% from its 52-week low.

Mesabi Trust. (MSB)Â EPS grew by 6% over the last five years and according to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 39%.

Mesabi is a royalty trust organized to derive income from an iron mine.

The stock is trading with a PE ratio of 6.81, and has been as high as $15.89 and as low as $3.00 in the last 52 weeks. The price is currently -62.30% from its 52-week high and +99.67% from its 52-week low.

The largest shareholder among the gurus is Jim Simons (Trades, Portfolio) with 1.34% of outstanding shares.

PDL BioPharma Inc. (PDLI)Â EPS grew by 28% over the last five years and according to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 84%.

PDL BioPharma is engaged in the discovery of a new generation of targeted treatments for cancer and immunologic diseases. The company focuses on intellectual property asset management, investing in new royalty bearing assets and maximizing the value of its patent portfolio and related assets. Fourth quarter total revenues grew 25% year over year and increased 2% from the prior year.

The stock is trading with a PE ratio of 1.67, and has been as high as $7.42 and as low as $2.58 in the last 52 weeks. The price is currently -55.12% from its 52-week high and +29.07% from its 52-week low.

Jim Simons (Trades, Portfolio) is the largest shareholder of the company among the gurus with 6.3% of outstanding shares, followed by Joel Greenblatt (Trades, Portfolio) with 2.89%, Barrow, Hanley, Mewhinney & Strauss with 0.17%, Jeremy Grantham (Trades, Portfolio) with 0.12% and Paul Tudor Jones (Trades, Portfolio) with 0.08%.

Universal Insurance Holdings Inc. (UVE)Â EPS grew by 37% over the last five years and according to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 78%.

Universal Insurance Holdings is a vertically integrated insurance holding company, which through its various subsidiaries, covers substantially all aspects of insurance underwriting, distribution, claims processing and exposure management. Diluted EPS had an increase of 39.0% year over year.

The stock is trading with a PE ratio of 5.99, and has been as high as $37.49 and as low as $15.86 in the last 52 weeks. The price is currently -52.52% from its 52-week high and +12.23% from its 52-week low.

The largest shareholder among the gurus are Chuck Royce (Trades, Portfolio) with 0.29% of outstanding shares, followed by Paul Tudor Jones (Trades, Portfolio) with 0.16% and Jeremy Grantham (Trades, Portfolio) with 0.1%.

Alliance Holdings GP LPÂ (AHGP)Â EPS grew by 6% over the last five years and according to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 78%.

Alliance Holdings is a Delaware limited partnership, which was formed to own and control Alliance Resource Management GP, the managing general partner of Alliance Resource Partners LP. The company completed its initial public offering in May 2006.

The stock is trading with a PE ratio of 4.14, and has been as high as $53.27 and as low as $12.05 in the last 52 weeks. The price is currently -72.55% from its 52-week high and +21.33% from its 52-week low.

Jim Simons (Trades, Portfolio) is the largest shareholder of the company among the gurus with 0.23% of outstanding shares.

NeuStar Inc. (NSR)Â EPS grew by 15% over the last five years and according to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 72%.

NeuStar is a provider of real-time information services and analytics, using authoritative, hard-to-replicate datasets and proprietary analytics to help its clients promote and protect their businesses. Fourth quarter revenue increased 9% and net income increased 7% year over year.

The stock is trading with a PE ratio of 7.86, and has been as high as $32.66 and as low as $20.00 in the last 52 weeks. The price is currently -24.68% from its 52-week high and +23.00% from its 52-week low.

The largest shareholder among the gurus is PRIMECAP Management (Trades, Portfolio) with 14.1% of outstanding shares, followed by Ronald Muhlenkamp (Trades, Portfolio) with 0.57%, Joel Greenblatt (Trades, Portfolio) with 0.53%, Ken Fisher (Trades, Portfolio) with 0.39%, Jim Simons (Trades, Portfolio) with 0.21% and Paul Tudor Jones (Trades, Portfolio) with 0.16%.