The following six stocks have low price-earnings ratios and have been bought by gurus. While some of them are great investments, others need to be checked again, according to the discounted cash flow calculator.
With a market cap of $2.5 billion, Murphy USA Inc. (MUSA) is trading with a price-earnings ratio of 9.36 and a price-sales ratio of 0.20. According to the discounted cash flow calculator, the stock has a fair value of $86.26 while trading at $74.41. The stock price is stable when compared to 12 months ago and is currently 16.39% below its 52-week high and 22.83% above its 52-week low.
GuruFocus gives the company a profitability and growth rating of 5 out of 10. Its return on equity of 41.53% and return on assets of 12.97% are outperforming 86% of companies in the Global Specialty Retail industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.16 is below the industry median of 1.02.
The company’s largest shareholder among the gurus is Mario Gabelli (Trades, Portfolio) with 0.8% of outstanding shares followed by Joel Greenblatt (Trades, Portfolio) with 0.19% and Wallace Weitz (Trades, Portfolio) with 0.14%.
Legg Mason Inc. (LM) has a market cap of $2.95 billion and is trading with a price-earnings ratio of 11.39 and a price-sales ratio of 0.98. According to the DCF calculator, the stock has a fair value of $32.43 while trading around $34.53. The stock is overpriced by 6%. The stock price has decreased 9% during the past 12 months and is currently 27.10% below its 52-week high and 0.70% above its 52-week low.
GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 7.03% and the return on assets of 3.50% are outperforming 55% of companies in the Global Asset Management industry. Its financial strength is rated 5 out of 10 with a cash-debt ratio of 0.55.
Gabelli is the company’s largest shareholder of the company among the gurus, with 2.73% of outstanding shares followed by Richard Pzena (Trades, Portfolio) with 0.75% and Robert Olstein (Trades, Portfolio) with 0.41%.
With a market cap of $4.35 billion, Air Lease Corp. Class A (AL) is trading with a price-earnings ratio of 5.92 and a price-sales ratio of 3.08. According to the DCF calculator, the stock has a fair value of $75.45 while trading around $41.85. The stock price has increased 12% during the past 12 months and is currently 16.43% below its 52-week high and 13.07% above its 52-week low.
GuruFocus gives the company a profitability and growth rating of 7 out of 10. The return on equity of 20.55% and the return on assets of 5.16% are outperforming 66% of companies in the Global Rental and Leasing Services industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.03 is above the industry median of 0.66.
The company’s largest shareholder among the gurus is Ron Baron (Trades, Portfolio) with 2.27% of outstanding shares followed by Chuck Royce (Trades, Portfolio) with 1.66%, Jerome Dodson (Trades, Portfolio) with 0.42% and Steven Cohen (Trades, Portfolio) with 0.19%.
Mobile TeleSystems PJSC ADR (MBT) has a market cap of $8.48 billion and is trading with a price-earnings ratio of 8.57 and a price-sales ratio of 1.12. According to the DCF calculator the stock has a fair value of $11.27 while is trading at about $9.01. The stock price has increased 7% during the past 12 months and is currently 29.34% below its 52-week high and 16.56% above its 52-week low.
GuruFocus gives the company a profitability and growth rating of 6 out of 10. The return on equity of 45.77% and the return on assets of 10.02% are outperforming 86% of companies in the Global Telecom Services industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.29 is below the industry median of 0.42%.
Jim Simons (Trades, Portfolio) is the company’s largest shareholder of the company among the gurus, with 2.01% of outstanding shares followed by Jeremy Grantham (Trades, Portfolio) with 1.48% and Sarah Ketterer (Trades, Portfolio) with 0.6%.
Berry Global Group Inc. (BERY) has a market cap of $6.06 billion. It is trading with a price-earnings ratio of 13.30 and a price-sales ratio of 0.84. According to the DCF calculator, the stock has a fair value of $37.03 while trading at about $46. The stock is overpriced by 26%. The stock price has declined 19% during the past 12 months and is currently 24.63% below its 52-week high and 2.0% above its 52-week low.
GuruFocus gives the company a profitability and growth rating of 7 out of 10. The return on equity of 46.72% and the return on assets of 5.45% are outperforming 60% of companies in the Global Packaging and Containers industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.05 is below the industry median of 0.57.
The company’s largest shareholder among the gurus is Cohen with 0.96% of outstanding shares followed by Baron with 0.61% and Simons with 0.5%.
Energy Company of Minas Gerais ADR (CIG) has a market cap of $2.72 billion. It is trading with a price-earnings ratio of 14.47 and a price-sales ratio of 0.44. According to the DCF calculator, the stock has a fair value of $1.35 while trading at about $1.89. The stock is overpriced by 40%. The stock price has fallen 21% during the last 12 months and is currently 35.38% below its 52-week high and 13.86% above its 52-week low.
GuruFocus gives the company a profitability and growth rating of 7 out of 10. The return on equity of 8.14% and the return on assets of 2.69% are underperforming 81% of companies in the Global Utilities - Diversified industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.15 is below the industry median of 0.25.
Pioneer Investments (Trades, Portfolio) is the company’s largest shareholder of the company among the gurus, with 0.03% of outstanding shares followed by Grantham with 0.03% and Simons with 0.02%.
Disclosure: I do not own any shares of any stocks mentioned in this article.
