Causeway International Value (Trades, Portfolio) made four new buys in the first quarter – the largest in an oil and gas company and the others in financial services and retail.
Causeway’s purchase of a 3,954,497-share stake in Royal Dutch Shell PLC (LSE:RDSB, Financial), an oil and gas company with offices in London and The Hague, was its largest of the first quarter. The firm paid an average price of £15.47 ($22.20 in U.S. currency) per share in a deal that had a 1.86% impact on Causeway’s portfolio.
The stake is 0.05% of Royal Dutch Shell’s outstanding shares and 1.86% of Causeway’s total assets. The acquisition made Causeway the company’s leading shareholder among the gurus.
Royal Dutch Shell has a forward P/E of 19.3, a P/B of 1 and a P/S of 0.7. GuruFocus gives Royal Dutch Shell a financial Strength rating of 5/10 and a Profitability and Growth rating of 6/10 with an ROE of -1.13 and an ROA of -0.55% that are lower than 68% of the companies in the Global Oil & Gas Integrated industry.
Royal Dutch Shell sold for £17.87 ($25.65 in American money) per share Friday. The DCF Calculator gives Royal Dutch Shell a fair value of £-2.31.
Causeway purchased a 3,615,970-share stake in ING Groep NV (XAMS:INGA, Financial), an Amsterdam-based banking and financial services company, for an average price of €10.9 ($12.29 in U.S. dollars) per share. The transaction had a 0.84% impact on Causeway’s portfolio.
The stake is 0.09% of ING’s outstanding shares and 0.84% of Causeway’s total assets. Causeway is ING’s only shareholder among the gurus.
ING has a P/E of 11.7, a forward P/E of 9.5, a P/B of 0.9 and a P/S of 4.2. GuruFocus gives ING a Financial Strength rating of 5/10 and a Profitability and Growth rating of 4/10 with an ROE of 6.95% that is lower than 60% of the companies in the Global Banks – Global industry and an ROA of 0.39% that is lower than 77% of the companies in that industry.
ING sold for €9.98 ($11.25 in American currency) per share Friday. The DCF Calculator gives ING a fair value of €10.06 with a margin of safety of 6%.
Causeway’s third-largest new buy of the quarter was a 598,534-share stake in Prudential PLC (LSE:PRU, Financial), a London-based life insurance and financial services company, for an average price of £13.07 ($18.76 in U.S. money) per share. The deal had a 0.22% impact on Causeway’s portfolio.
The stake is 0.02% of Prudential’s outstanding shares and 0.22% of Causeway’s total assets. Causeway is Prudential’s leading shareholder among the gurus.
Prudential has a P/E of 12.1, a forward P/E of 10.3, a P/B of 2.4 and a P/S of 0.8. GuruFocus gives Prudential a Financial Strength rating of 5/10 and a Profitability and Growth rating of 6/10 with an ROE of 20.98% that is higher than 91% of the companies in the Global Insurance – Life industry and an ROA of 0.68% that is lower than 56% of the companies in that industry.
Prudential sold for £12.25 ($17.58 in American dollars) per share Friday. The DCF Calculator gives Prudential a fair value of £10.81.
Causeway also invested in a 576,506-share stake in Marks & Spencer Group PLC (LSE:MKS, Financial), a London-based retailer, for an average price of £4.2 ($6.03 in U.S. currency) per share. The transaction had a 0.06% impact on Causeway’s portfolio.
The stake is 0.04% of Marks & Spencer’s outstanding shares and 0.06% of Causeway’s total assets. Causeway is Marks & Spencer’s only shareholder among the gurus.
Marks & Spencer has a P/E of 14.1, a forward P/E of 10.2, a P/B of 1.7 and a P/S of 0.6. GuruFocus gives Marks & Spencer a Financial Strength rating of 5/10 and a Profitability and Growth rating of 6/10 with an ROE of 12.57% that is higher than 70% of the companies in the Global Department Stores industry and an ROA of 4.91% that is higher than 64% of the companies in that industry.
Marks & Spencer sold for £3.52 ($5.05 in American money) per share Friday. The DCF Calculator gives Marks & Spencer a fair value of £2.57.
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