7 Stocks With Growing Book Values

Companies have wide margins of safety

Author's Avatar
Apr 11, 2017
Article's Main Image

The following companies have grown their book values per share (BV/S) over the last 10 years.

BV/S is calculated as total equity minus preferred stock, divided by shares outstanding (EOP). Theoretically it is what the shareholders will receive if the company is liquidated. Total equity is a balance sheet item and equal to total assets minus total liabilities. Because the BV/S may not reflect the company’s true value, some investors check the tangible book value to confirm their investment ideas.

The BV/S of Itau Unibanco Holding SA ADRÂ (ITUB) has grown by 10.8% over the last 10 years. The price-book (P/B) ratio is 1.8, and the price to tangible book ratio is 2.1.

02May2017120233.png

Itau Unibanco Holding SA provides financial products and services to individual and corporate clients in Brazil and abroad. It provides investment banking, credit card, financing, leasing and foreign trade financing.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 21% at $12.05. The price has been as high as $8.30 and as low as $6.57 in the last 52 weeks. It is 11.72% below its 52-week high and 52.34% above its 52-week low. The price earnings (P/E) ratio is 10.15.

Howard Marks (Trades, Portfolio) is the largest shareholder among the gurus with 0.12% of outstanding shares followed by Dodge & Cox with 0.09%, Jeremy Grantham (Trades, Portfolio) with 0.01% and Jim Simons (Trades, Portfolio) with 0.01%.

The BV/S of GameStop Corp. Class AÂ (GME) has grown by 8% over the last 10 years. The P/B ratio is 1.0, and the price to tangible book ratio is 99.5.

02May2017120234.png

GameStop is an omnichannel video game retailer. It sells new and preowned video game hardware, physical and digital video game software and accessories through GameStop, EB Games and Micromania stores.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 40% at $21.88. The price has been as high as $13.81 and as low as $8.37 in the last 52 weeks. It is 35.11% below its 52-week high and 8.86% above its 52-week low. The P/E ratio is 6.43.

The company’s largest shareholder among the gurus is Ray Dalio (Trades, Portfolio) with 0.87% of outstanding shares followed by Joel Greenblatt (Trades, Portfolio) with 0.44%, NWQ Managers (Trades, Portfolio) with 0.43%, Ronald Muhlenkamp (Trades, Portfolio) with 0.26%, Chuck Royce (Trades, Portfolio) with 0.09% and Grantham with 0.04%.

The BV/S of Alliance Resource Partners LPÂ (ARLP) has grown by 18% over the last 10 years. The P/B ratio is 1.7, and the price to tangible book ratio is 1.7.

02May2017120234.png

Alliance Resource Partners LP is a diversified producer and marketer of coal to U.S. utilities and industrial users. It operates eight underground mining complexes in Illinois, Indiana, Kentucky, Maryland and West Virginia.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 51% at $22.00. The price has been as high as $23.25 and as low as $16.20 in the last 52 weeks. It is 17.45% below its 52-week high and 84.56% above its 52-week low. The P/E ratio is 6.49.

Grantham is the largest shareholder among the gurus with 0.28% of outstanding shares.

The BV/S of Urban Outfitters Inc. (URBN) has grown by 10% over the last 10 years. The P/B ratio is 2.0, and the price to tangible book ratio is 2.0.

02May2017120234.png

Urban Outfitters is a lifestyle specialty retail company that operates under the Urban Outfitters, Anthropologie, Free People, Terrain and Bhldn brands. It also operates a wholesale segment under the Free People brand.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 12% at $22.39. The price has been as high as $22.48 and as low as $16.10 in the last 52 weeks. It is 45.12% below its 52-week high and 2.57% above its 52-week low. The P/E ratio is 12.04.

Steven Cohen (Trades, Portfolio) is the largest shareholder among the gurus with 0.31% of outstanding shares followed by Greenblatt with 0.29%, John Hussman (Trades, Portfolio) with 0.13%, Murray Stahl (Trades, Portfolio) with 0.01% and Paul Tudor Jones (Trades, Portfolio) with 0.01%.

The BV/S of Telecom Argentina SA ADRÂ (TEO) has grown by 25% over the last 10 years. The P/B ratio is 3.4, and the price to tangible book ratio is 5.7.

02May2017120235.png

Telecom Argentina SA provides fixed-line public telecommunication services, international long-distance service, data transmission and internet services in Argentina.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 42% at $22.54. The price has been as high as $22.12 and as low as $14.66 in the last 52 weeks. It is 6.04% below its 52-week high and 36.03% above its 52-week low. The P/E ratio is 17.08.

The BV/S of Orchids Paper Products Co. (TIS) has grown by 13% over the last 10 years. The P/B ratio is 1.8, and the price to tangible book ratio is 2.1.

02May2017120236.png

Orchids Paper Products manufactures bulk tissue paper, known as parent rolls, and converts parent rolls into a line of finished products, including paper towels, bathroom tissue and paper napkins for the consumer, or at-home, market.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 26% at $23.07. The price has been as high as $21.17 and as low as $11.79 in the last 52 weeks. It is 36.46% below its 52-week high and 2.08% above its 52-week low. The P/E ratio is 18.59.

The company’s largest shareholder among the gurus is Simons with 2.42% of outstanding shares.

The BV/S of Flanigan's Enterprises Inc. (BDL) has grown by 11% over the last 10 years. The P/B ratio is 1.5, and the price to tangible book ratio is 1.5.

02May2017120236.png

Flanigan's Enterprises operates as a chain of small cocktail lounges and package liquor stores throughout South Florida.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 14% at $23.75. The price has been as high as $23.25 and as low as $16.20 in the last 52 weeks. It is 10.88% below its 52-week high and 34.03% above its 52-week low. The P/E ratio is 14.22.

Simons is the largest shareholder among the gurus with 2.5% of outstanding shares.

Disclosure: I do not own any shares of any stocks mentioned in this article.

Start a free seven-day trial of Premium Membership to GuruFocus.