5 Stocks With Low Price-Sales Ratios

Amgen tops the list

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Jun 28, 2019
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According to the GuruFocus All-in-One Screener, the following companies look cheap since they are trading with low price-sales ratios.

Shares of Amgen Inc. (AMGN, Financial) are trading around $184 with a price-sales ratio of 5.02 and a price-earnings ratio of 14.73.

The biotechnology company has a market cap of $112.53 billion. The stock has risen at an annualized rate of 14.77% over the last 10 years.

The discounted cash flow calculator gives the stock a fair value of $158, suggesting it is overpriced by 16%. The Peter Lynch earnings line gives the stock a fair value of $177.

PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder with 3.12% of outstanding shares, followed by Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.58% and Pioneer Investments (Trades, Portfolio) with 0.16%.

Linde PLC (LIN, Financial) is trading around $200 with a price-sales ratio of 4.32 and a price-earnings ratio of 16.

The company, which produces industrial gases, has a market cap of $108.31 billion. The stock has risen at an annualized rate of 12.11% over the past decade.

The DCF calculator gives the stock a fair value of $143, suggesting it is overpriced by 38%.

The company's largest guru shareholder is Sarah Ketterer (Trades, Portfolio) with 1.45% of outstanding shares, followed by Dodge & Cox with 1.44% and Pioneer Investments with 0.90%.

Eli Lilly and Co. (LLY, Financial) is trading around $111 with a price-sales ratio of 4.75 and price-earnings ratio of 17.86.

The pharmaceutical company has a market cap of $108.62 billion. The stock has risen at an annualized rate of 14.09% over the last 10 years.

The DCF calculator gives the stock a fair value of $26, suggesting it is overpriced by 317%. The Peter Lynch earnings line gives the stock a fair value of $63.

With 4.45% of outstanding shares, PRIMECAP Management is the company's largest guru shareholder, followed by the Vanguard Health Care Fund (Trades, Portfolio) with 1.67% and Dodge & Cox with 1.51%.

Sanofi SA (SNY, Financial) is trading around $43 with a price-sales ratio of 2.68 and a price-earnings ratio of 21.90.

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The company, which develops oncology and immunology drugs as well as vaccines, has a market cap of $106.90 billion. The stock has risen at an annualized rate of 7.98% over the past decade.

The DCF calculator gives the company a fair value of $21, suggesting it is overpriced by 101%. The Peter Lynch earnings line gives the stock a fair value of $42.95.

The company's largest guru shareholder is Dodge & Cox with 2.43% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 0.91% and Ken Fisher (Trades, Portfolio) with 0.66%.

AstraZeneca PLC (AZN, Financial) is trading around $41.01 with a price-sales ratio of 4.70 and a price-earnings ratio of 43.04.

The company, which develops drugs for diabetes, cardiovascular diseases and neuroscience, has a market cap of $107.82 billion. The stock has risen at an annualized rate of 9.32% over the last 10 years.

The DCF calculator gives the company a fair value of $10, suggesting it is overvalued by 303%.

The company's largest guru shareholder is PRIMECAP Management with 2.15% of outstanding shares, followed by Dodge & Cox with 1.88%, Fisher with 0.59% and Spiros Segalas (Trades, Portfolio) with 0.57%.

Disclosure: I do not own any stocks mentioned.

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