6 Stocks With Low Price-Sales Ratios

Royal Dutch Shell tops the list

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Jan 03, 2019
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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.

Class A shares of Royal Dutch Shell PLC (RDS.A, Financial) are trading around $59 with a price-sales ratio of 0.70 and a price-earnings ratio of 12.15. The integrated oil and gas company has a market cap of $242.58 billion. The stock has risen at an annualized rate of 5.9% over the last 10 years.

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The discounted cash flow calculator gives the company a fair value of $54.58, suggesting it is overpriced by 7%. The Peter Lynch earnings line gives the stock a fair value of $70.20.

Ken Fisher (Trades, Portfolio) is the company's largest shareholder among the gurus with 0.18% of outstanding shares, followed by Richard Pzena (Trades, Portfolio) with 0.14%, Hotchkis & Wiley with 0.12% and Steven Cohen (Trades, Portfolio)’s Point72 Asset Management with 0.04%.

Blackstone Mortgage Trust Inc. (BXMT, Financial) shares are trading around $31.60 with a price-sales ratio of 11.36 and a price-earnings ratio of 12.84. The real estate company has a market cap of $3.85 billion. The stock has risen at an annualized rate of 6% over the past decade.

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The DCF calculator gives the company a fair value of $26.54, suggesting it is overpriced by 20%. The Peter Lynch earnings line gives the stock a fair value of $34.35.

The company's largest guru shareholder is Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.5% of outstanding shares, followed by Scott Black (Trades, Portfolio) with 0.05% and Murray Stahl (Trades, Portfolio) with 0.01%.

Shares of C.H. Robinson Worldwide Inc. (CHRW, Financial) are trading around $80 with a price-sales ratio of 0.69 and price-earnings ratio of 18. The company, which offers non-asset-based third-party logistics, has a market cap of $11.56 billion. The stock has risen at an annualized rate of 6% over the last 10 years.

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The DCF calculator gives the company a fair value of $54.68, suggesting it is overpriced by 54%. The Peter Lynch earnings line gives the stock a fair value of $61.05.

With 4.57% of outstanding shares, First Eagle Investment (Trades, Portfolio) is the company's largest guru shareholder, followed by Mairs and Power (Trades, Portfolio) with 1.31%, David Rolfe (Trades, Portfolio) with 0.5% and Simons’ firm with 0.26%.

Coca-Cola Femsa SAB de CV (KOF, Financial) shares are trading around $62 with a price-sales ratio of 1.18 and price-book ratio of 2.23. The beverage company has a market cap of $13 billion. The stock has risen at an annualized rate of 6% over the past decade.

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The company's largest guru shareholder is Bill Gates (Trades, Portfolio) with 2.96% of outstanding shares, followed by Tweedy Browne (Trades, Portfolio) with 0.57%, the Tweedy Browne (Trades, Portfolio) Global Value Fund with 0.25% and Joel Greenblatt (Trades, Portfolio) with 0.01%.

Suncor Energy Inc. (SU, Financial) shares are trading around $28 with a price-sales ratio of 1.59 and a price-earnings ratio of 12.68. The integrated energy company has a market cap of $44.92 billion. The stock has risen at an annualized rate of 6% over the last 10 years.

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The DCF calculator gives the stock a fair value of $24.85, suggesting it is overpriced by 13%. The Peter Lynch earnings line gives the stock a fair value of $34.80.

The company's largest guru shareholder is Dodge & Cox with 2.03% of outstanding shares, followed by NWQ Managers (Trades, Portfolio) with 0.09%, Simons’ firm with 0.07% and Ken Heebner (Trades, Portfolio) with 0.06%.

Shares of Kennametal Inc. (KMT, Financial) are trading around $32 with a price-sales ratio of 1.16 and a price-earnings ratio of 12.69. The manufacturer of metalworking tools has a market cap of $2.73 billion. The stock has risen at an annualized rate of 6% over the past decade.

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The stock has a fair value of $28.04 according to the DCF calculator, suggesting it is overpriced by 19%. The Peter Lynch earnings line gives the stock a fair value of $39.30.

With 6.7% of outstanding shares, John Rogers (Trades, Portfolio) is the company's largest guru shareholder, followed by David Tepper (Trades, Portfolio) with 1.81% and Mario Gabelli (Trades, Portfolio) with 0.49%.

Disclosure: I do not own any stocks mentioned.

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