6 Bargain Stocks With Low Price-Sales Ratios

Domino's Pizza on the list

Author's Avatar
Apr 18, 2019
Article's Main Image

According to the GuruFocus All-in-One Screener, the following companies look cheap since they are trading with low price-sales ratios.

Shares of Sinclair Broadcast Group Inc. (SBGI) are trading around $45 with a price-sales ratio of 1.5 and a price-earnings ratio of 13.44.

1942712979.png

The television broadcasting company has a market cap of $4.11 billion. The stock has risen at an annualized rate of 47.23% over the last 10 years.

The discounted cash flow calculator gives the stock a fair value of $35.85, suggesting it is overpriced by 25%. The Peter Lynch earnings line gives the stock a fair value of $50.25.

Seth Klarman (Trades, Portfolio)’s The Baupost Group is the company's largest guru shareholder with 3.28% of outstanding shares, followed by Jim Simons' (Trades, Portfolio) Renaissance Technologies with 1.71% and Ruane Cunniff (Trades, Portfolio) with 1.44%.

Nova Measuring Instruments Ltd. (NVMI) is trading around $28.50 with a price-sales ratio of 3.28 and a price-earnings ratio of 15.07. The semiconductor equipment manufacturer has a market cap of $795.59 million. The stock has risen at an annualized rate of 45.72% over the past decade.

1887063008.png

The discounted cash flow calculator gives the stock a fair value of $20.23, suggesting it is overpriced by 41%. The Peter Lynch earnings line gives the stock a fair value of $28.

The company's largest guru shareholder is Simons’ firm with 7.21% of outstanding shares followed by Chuck Royce (Trades, Portfolio) with 1.68% and Ron Baron (Trades, Portfolio) with 0.47%.

Lithia Motors Inc. (LAD) is trading around $97.5 with a price-sales ratio of 0.2 and price-earnings ratio of 8.95. The company, which retails new and used vehicles and related services, has a market cap of $2.26 billion. The stock has risen at an annualized rate of 45.18% over the last 10 years.

1145682964.png

The discounted cash flow calculator gives the stock a fair value of $116.65, suggesting it is undervalued with a 16% margin of safety. The Peter Lynch earnings line gives the stock a fair value of $166.24.

With 9.94% of outstanding shares, David Abrams (Trades, Portfolio) is the company's largest guru shareholder followed by Joel Greenblatt (Trades, Portfolio)’s Gotham Asset Management with 0.44% and Hotchkis & Wiley with 0.23%.

Natural Health Trends Corp. (NHTC) is trading around $12 with a price-sales ratio of 0.73 and a price-earnings ratio of 4.39. The company which provides products related to personal care and wellness, has a market cap of $136.62 million. The stock has risen at an annualized rate of 44.06% over the past decade.

242314331.png

The DCF calculator gives the company a fair value of $29.32, suggesting it is undervalued with a 59% margin of safety.

The company's largest guru shareholder is Simons’ firm with 7.86% of outstanding shares, followed by Hotchkis & Wiley with 0.83% and Paul Tudor Jones (Trades, Portfolio) with 0.20%.

Domino's Pizza Inc. (DPZ) is trading around $265 with a price-sales ratio of 3.21 and a price-earnings ratio of 32.64. The quick service pizza restaurant chain has a market cap of $10.49 billion. The stock has risen at an annualized rate of 43.45% over the last 10 years.

49157517.png

The DCF calculator gives the company a fair value of $222.62, suggesting it is overpriced by 15%. The Peter Lynch earnings line gives the stock a fair value of $117.35.

The company's largest guru shareholder is Simons’ firm with 7.62% of outstanding shares, followed by Chase Coleman (Trades, Portfolio)’s Tiger Global Management with 4.56%, Ken Fisher (Trades, Portfolio) with 2.60% and Baron with 0.21%.

Radiant Logistics Inc. (RLGT) is trading around $7 with a price-sales ratio of 0.38 and a price-earnings ratio of 35. The provider of domestic and international freight forwarding services, has a market cap of $359.95 million. The stock has risen at an annualized rate of 42.69% over the past decade.

1253641252.png

The DCF calculator gives the company a fair value of $2.17, suggesting it is overpriced by 235%. The Peter Lynch earnings line gives the stock a fair value of $3.06.

With 0.88% of outstanding shares, the Simons’ firm is the company's largest guru shareholder.

Disclosure: I do not own any stocks mentioned.