6 Stocks With Low Price-Sales Ratios

SRC Energy, Toll Brothers make the list

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Dec 10, 2018
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According to the GuruFocus All-in-One Screener, the following companies with market caps over $5 billion look cheap since they are trading with low price-sales ratios.

SRC Energy Inc. (SRCI) shares are trading around $5.24 with a price-sales ratio of 2.26 and a price-earnings ratio of 5.46. The company which operates in the exploration and production of oil and natural gas properties, has a market cap of $1.27 billion. The stock has risen at an annualized rate of 6.6% over the last 10 years.

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The discounted cash flow calculator gives the stock a fair value of $14.16, suggesting it is undervalued with a 60% of margin of safety. The Peter Lynch earnings line gives the stock a fair value of $14.40.

Ken Fisher (Trades, Portfolio) is the company's largest shareholder among the gurus with 0.75% of outstanding shares, followed by Steven Cohen (Trades, Portfolio) with 0.24%.

United States Cellular Corp. (USM) shares are trading around $54 with a price-sales ratio of 1.21 and a price-earnings ratio of 11.61. The company, which provides wireless telecommunication service, has a market cap of $4.68 billion. The stock has risen at an annualized rate of 5.0% over the past decade.

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The DCF calculator gives the company a fair value of $50.3, suggesting it is overpriced by 8%. The Peter Lynch earnings line gives the stock a fair value of $11.70.

The company's largest guru shareholder is Mario Gabelli (Trades, Portfolio) with 2.83% of outstanding shares, followed by Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 1.07%, Jeremy Grantham (Trades, Portfolio) with 0.02% and Paul Tudor Jones (Trades, Portfolio) with 0.01%.

Toll Brothers Inc. (TOL) shares are trading around $33 with a price-sales ratio of 0.78, a price-earnings ratio of 6.75 and a forward price-earnings ratio of 6.60. The luxury homebuilder has a market cap of $4.86 billion. The stock has risen at an annualized rate of 5% over the last 10 years.

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The company's largest guru shareholder is Ray Dalio (Trades, Portfolio) with 0.9% of outstanding shares, followed by Fisher with 0.31% and Donald Smith (Trades, Portfolio) with 0.21%.

Blackstone Mortgage Trust Inc. Class A (BXMT) shares are trading around $35 with a price-sales ratio of 12.48, a price-earnings ratio of 14.08 and a forward price-earnings ratio of 13.37. The real estate company has a market cap of $4.23 billion. The stock has risen at an annualized rate of 5% over the past decade.

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The company's largest guru shareholder is Simons’ firm with 0.51% of outstanding shares, followed by Scott Black (Trades, Portfolio) with 0.06%, David Dreman (Trades, Portfolio) with 0.01% and Murray Stahl (Trades, Portfolio) with 0.01%.

KBR Inc. (KBR) shares are trading around $17.48 with a price-sales ratio of 0.54, a price-earnings ratio of 4.82 and a forward price-earnings ratio of 10.89. The company, which supplies differentiated professional services and technologies, has a market cap of $2.46 billion. The stock has risen at an annualized rate of 5% over the last 10 years.

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The DCF calculator gives the stock a fair value of $38.74, suggesting it is undervalued with a 55% margin of safety. The Peter Lynch earnings line gives the stock a fair value of $54.30.

The company's largest guru shareholder is HOTCHKIS & WILEY with 3.99% of outstanding shares, followed by Richard Pzena (Trades, Portfolio) with 2.67% and Chuck Royce (Trades, Portfolio) with 1.01%.

CRH PLC ADR (CRH) shares are trading around $26.83 with a price-sales ratio of 0.78, a forward price-earnings ratio of 11.31 and a price-earnings ratio of 6.62. The manufacturer of building materials has a market cap of $20.81 billion. The stock has risen at an annualized rate of 5.1% over the past decade.

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The stock has a fair value of $37.82 according to the DCF calculator, suggesting it is undervalued with a 29% margin of safety. The Peter Lynch earnings line gives the stock a fair value of $37.35

With 0.04% of outstanding shares, Charles Brandes (Trades, Portfolio) is the company's largest guru shareholder, followed by Simons’ firm with 0.04% and Cohen with 0.01%.

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