6 Undervalued Stocks With Predictable Business

Viacom on the list with 49% of margin of safety

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Oct 10, 2018
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According to the GuruFocus All-in-One Screener, the following stocks have high business predictability ratings and a wide margin of safety.

Group 1 Automotive Inc. (GPI)

The company has a three-star business predictability rating and, according to the discounted cash flow calculator, a 50% margin of safety at $59.61 per share.

The company, which sells new and used cars and light trucks, has a market cap of $1.19 billion. Over the last five years, its revenue has increased 11.40% but its earnings per share have fallen 17.90%.

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The stock has fallen 17% over the last 12 months, and it is currently trading with a price-earnings ratio of 5.36 and a price-book ratio of 1.07. The price has been as high as $84.47 and as low as $58.32 in the past 52 weeks. It is currently 29.43% below its 52-week high and 2.21% above its 52-week low.

With 2.3% of outstanding shares, David Abrams (Trades, Portfolio) is the company's largest guru shareholder followed by Hotchkis & Wiley with 1.09% and Barrow, Hanley, Mewhinney & Strauss with 0.33%.

Viacom Inc. Class A(VIA) Class B (VIAB)

The company has a three-star business predictability rating and, according to the DCF calculator, a 49% margin of safety at $36 per share.

With a market cap of $13.33 billion, the company creates television programs, motion pictures and related multimedia applications. Over the last five years, its revenue has grown by 4.80%, but its earnings per share fell 1.90%.

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The stock has raised 5% over the last 12 months, and it is currently trading with a price-earnings ratio of 7.17 and a price-book ratio of 2.04. The price has been as high as $40.64 and as low as $28.20 in the past 52 weeks. It is currently 12.70% below its 52-week high and 25.82% above its 52-week low.

The company's largest guru shareholder is Mario Gabelli (Trades, Portfolio) with 0.72% of outstanding shares.

Genesee & Wyoming Inc. Class A(GWR)

The company has a three-star business predictability rating and, according to the DCF calculator, a 49% margin of safety at $90 per share.

The provider of rail freight services has a market cap of $5.41 billion. Over the last five years, its revenue has increased 13.70%, and its earnings per share have grown 27.70.

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The stock has climbed 25% over the last 12 months, and it is currently trading with a price-earnings ratio of 9.40. The price has been as high as $92.91 and as low as $67.61 in the last 52 weeks. As of Tuesday, is 3.13% below its 52-week high and 33.13% above its 52-week low.

With 0.36% of outstanding shares, Jim Simons (Trades, Portfolio) is the company's largest guru shareholder, followed by Steven Cohen (Trades, Portfolio) with 0.13% and Joel Greenblatt (Trades, Portfolio) with 0.02%.

Credit Acceptance Corp. (CACC)

The company has a 4.5 stars business predictability rating and, according to the DCF calculator, a 48% margin of safety at $415.89 per share.

The company which provides automobile dealers financing programs, has a $8.03 billion market cap. Over the last five years, its revenue has grown 19%, and its earnings per share have grown 20.90%.

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The stock has climbed 47% over the last 12 months, and it is currently trading with a price-earnings ratio of 14.75 and a price-book ratio of 4.50. The price has been as high as $467.26 and as low as $274.02 in the last 52 weeks. It is currently 10.99% below its 52-week high and 51.77% above its 52-week low.

The company's largest guru shareholder is Ruane Cunniff (Trades, Portfolio) with 5.7% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 0.24%, Lee Ainslie (Trades, Portfolio) with 0.1% and Simons with 0.01%.

Hisense Kelon Electrical Holdings Co. Ltd. (HISEF)

The company has a 4.5-star business predictability rating and, according to the DCF calculator, has a 67% margin of safety at 86 cents per share.

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The manufacturer of white household electrical appliances has a market cap of $1.51 billion. Over the last five years, its revenue has grown 8.80% and its earnings per share have climbed by 14.00%. The stock has risen 6% over the last 12 months.

Betsson AB Class B (BSTBF)

The company has a four-star business predictability rating and, according to the DCF calculator, a 45% margin of safety at $7.60 per share.

The company, which provides online gambling activities, has a market cap of $1.11 billion. Over the last five years, its revenue has grown 15%, and its earnings per share have increased 7.60%.

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The stock has fallen 16% over the last 12 months, and it is currently trading with a price-earnings ratio of 11.04 and a price-book ratio of 2.37.

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

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