Company Shares Trading With Low P/S Ratios

Most of these stocks are undervalued

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May 23, 2016
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According to GuruFocus' All-in-One Screener, the following are companies with market caps above $5 billion that are trading with low P/S ratios.

Principal Financial Group Inc. (PFG) is trading at about $43 with a P/S ratio of 1.04 and an estimated P/E multiple of 10.99. The company has a market cap of $12.52 billion; over the last 10 years, the stock has dropped by 18%. During the last 52 weeks, the price has been as high as $58.02 and as low as $33.09.

The company offers retirement services, insurance solutions and asset management services. It provides financial products and services through financial services companies to businesses, individuals, and institutional clients.

The DCF model gives a fair value of $42.06, making the stock overpriced by 3%. The Peter Lynch earnings line suggests the stock is undervalued, giving a fair price of $59.0.

The company’s largest shareholder among the gurus is Bill Gates (Trades, Portfolio) with 1.59% of outstanding shares followed by Mairs and Power (Trades, Portfolio) with 1%, Jim Simons (Trades, Portfolio) with 0.17%, Jeremy Grantham (Trades, Portfolio) with 0.07%, Manning & Napier Advisors Inc. with 0.02% and Paul Tudor Jones (Trades, Portfolio) with 0.01%.

T-Mobile US Inc. (TMUS) is trading at about $41 with a P/S ratio of 1.05 and an estimated P/E multiple 28.37. The company has a market cap of $34.29 billion and over the last 10 years, the stock has dropped by 24%. During the last 52 weeks, the price has been as high as $43.43 and as low as $33.23.

The company provides wireless communication services in the postpaid, prepaid and wholesale markets. The company's products and services include voice, messaging, data services, wireless devices, smartphones and other mobile communication devices.

The DCF model gives a fair value of $15.52, making the stock overpriced by 169%. The Peter Lynch earnings line suggests the stock is less overpriced giving a fair price of $21.8.

The company’s largest shareholder among the gurus is John Paulson (Trades, Portfolio) with 1.78% of outstanding shares followed by Andreas Halvorsen (Trades, Portfolio) with 0.33%, First Eagle Investment (Trades, Portfolio) with 0.28%, George Soros (Trades, Portfolio) with 0.07%, Mario Gabelli (Trades, Portfolio) with 0.06% and Louis Moore Bacon (Trades, Portfolio) with 0.02%.

Ecopetrol SAĂ‚ (EC) is trading at about $9.19 with a P/S ratio of 1.10 and an estimated forward P/B multiple of 1.40. The company has a market cap of $18.89 billion; over the last 10 years, the stock has dropped by 66%. During the last 52 weeks, the price has been as high as $15.65 and as low as $5.15.

The company operates in three business segments: exploration and production, transportation and logistics and refining and petrochemicals.

The company’s largest shareholder among the gurus is Simons with 0.21% of outstanding shares followed by Grantham with 0.13%.

Nomura Holdings Inc. (NMR) is trading at about $4.16 with a P/S ratio of 1.11 and an estimated P/E multiple of 13.05. The company has a market cap of $15.01 billion, and over the last 10 years, the stock has dropped by 79%. During the last 52 weeks, the price has been as high as $7.32 and as low as $3.96.

It is a financial services company in Japan. Its clients include individuals, corporations, financial institutions, governments and governmental agencies.

The DCF model gives a fair value of $3.08 making the stock overpriced by 35%. The Peter Lynch earnings line suggests the stock is a few undervalued, giving a fair price of $4.3.

Richard Pzena (Trades, Portfolio) is the largest shareholder among the gurus with 0.28% of outstanding shares followed by Simons with 0.14% and Steven Cohen (Trades, Portfolio) with 0.03%.

BRF SAĂ‚ (BRFS) is trading at about $13.06 with a P/S ratio of 1.13 and an estimated P/E multiple of 14.29. The company has a market cap of $10.61 billion; over the last 10 years, the stock has risen by 244%. During the last 52 weeks, the price has been as high as $22.35 and as low as $11.05.

The company is a producer of fresh and frozen protein foods. It includes marinated, frozen, whole and cut Chester rooster and turkey meats, specialty meats, frozen processed meats, frozen prepared entrees and portioned products.

The DCF model gives a fair value of $22.37, making the stock overpriced by 42%. The Peter Lynch earnings line suggests the stock is less overpriced, giving a fair price of $12.

Simons is the largest shareholder among the gurus with 1.15% of outstanding shares followed by Howard Marks (Trades, Portfolio) with 0.35% and Sarah Ketterer (Trades, Portfolio) with 0.01%.

Autoliv Inc. (ALV) is trading at about $121 with a P/S ratio of 1.13 and an estimated P/E multiple of 19.16. The company has a market cap of $10.7 billion and over the last 10 years, the stock has risen by 124%. During the last 52 weeks, the price has been as high as $131.47 and as low as $95.34.

The company is a developer, manufacturer and supplier to the automotive industry of automotive safety systems. Its products include passive safety systems and active safety systems.

The DCF model gives a fair value of $68.5, making the stock overpriced by 77%. The Peter Lynch earnings line suggests the stock is less overpriced giving a fair price of $94.2

John Keeley (Trades, Portfolio) is the company's largest shareholder among the gurus, with 0.01% of outstanding shares followed by Chuck Royce with 0.01%.

Eastman Chemical Co. (EMN) is trading at about $73.28 with a P/S ratio of 1.16 and an estimated P/E multiple of 11.80. The company has a market cap of $10.83 billion and over the last 10 years, the stock has risen by 170%. During the last 52 weeks, the price has been as high as $83.90 and as low as $56.03.

The company is a specialty chemical company that manufactures and sells a portfolio of chemicals, plastics and fibers. It has 11 manufacturing sites in seven countries that supply chemicals, plastics and fiber products to customers.

The DCF model gives a fair value of $109.96, making the stock undervalued with a margin of safety of 33%. The Peter Lynch earnings line suggests the stock is less undervalued giving a fair price of $93.2.

The company’s largest shareholder among the gurus is First Eagle Investment (Trades, Portfolio) with 1.57% of outstanding shares followed by Diamond Hill Capital (Trades, Portfolio) with 0.64%, Leon Cooperman (Trades, Portfolio) with 0.55%, RS Investment Management (Trades, Portfolio) with 0.12%, Joel Greenblatt (Trades, Portfolio) with 0.07%, Signature Select Canadian Fund (Trades, Portfolio) with 0.05% and Ray Dalio (Trades, Portfolio) with 0.04%.

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