5 Companies Growing Book Value

Dorman Products tops the list

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Oct 03, 2019
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According to the GuruFocus All-In-One Screener, the following companies have grown their book value per share over the past decade.

Book value per share is calculated as total equity minus preferred stock, divided by shares outstanding. Theoretically, it is what shareholders will receive if a company is liquidated. Total equity is a balance sheet item and equal to total assets minus total liabilities. Since the book value per share may not reflect the company’s true value, some investors check the tangible book value to confirm their investment ideas.

The book value per share of Dorman Products Inc. (DORM, Financial) has grown 15.10% over the last 10 years. The price-book ratio is 3.53 and the price-tangible book value is 4.01.

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The company, which provides replacement parts for automobiles, has a market cap of $2.64 billion and an enterprise value of $2.63 billion.

According to the discounted cash flow calculator, the stock is undervalued and is trading with a 19.13% margin of safety at $80. The share price has been as high as $97.38 and as low as $65.68 in the last 52 weeks. As of Thursday, the stock was trading 19.16% below its 52-week high and 19.85% above its 52-week low. The price-earnings ratio is 23.02.

With 1.61% of outstanding shares, Chuck Royce (Trades, Portfolio) is the company's largest guru shareholder, followed by Third Avenue Management (Trades, Portfolio) with 0.13%.

Methanex Corp.'s (MEOH, Financial) book value per share has grown 6.60% over the past decade. The price-book ratio is 1.84 and the price-tangible book value is 1.83.

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The methanol supplier has a market cap of $2.61 billion and an enterprise value of $4.76 billion.

According to the DCF calculator, the stock is undervalued and is trading with 26% margin of safety at $34.05. The share price has been as high as $83.23 and as low as $30.25 in the last 52 weeks. As of Thursday, the stock was trading 59.10% below its 52-week high and 12.53% above its 52-week low. The price-earnings ratio is 7.99.

With 0.48% of outstanding shares, Jim Simons (Trades, Portfolio)’ Renaissance Technologies is the company's largest guru shareholder, followed by Joel Greenblatt (Trades, Portfolio) with 0.08% and Steven Cohen (Trades, Portfolio) with 0.04%.

Allegiant Travel Co.'s (ALGT, Financial) book value per share has grown 11.30% over the past decade. The price-book ratio is 2.97 and the price-tangible book value is 3.02.

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The travel services provider has a market cap of $2.45 billion and an enterprise value of $3.28 billion

According to the DCF calculator, the stock is undervalued and is trading with a 53.57% margin of safety at $150.03. The share price has been as high as $157.50 and as low as $98.18 in the last 52 weeks. As of Thursday, the stock was trading 5.50% below its 52-week high and 51.59% above its 52-week low. The price-earnings ratio is 13.24.

With 3.34% of outstanding shares, Diamond Hill Capital (Trades, Portfolio) is the company's largest guru shareholder, followed by First Pacific Advisors (Trades, Portfolio) with 2.13% and Royce with 0.99%

The book value per share of Werner Enterprises Inc. (WERN, Financial) has grown 6.10% over the last 10 years. The price-book ratio is 2.37, and the price to tangible book value is 2.36.

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The company has a market cap of $2.40 billion and an enterprise value of $2.74 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 5.77% margin of safety at $34.45. The share price has been as high as $36.53 and as low as $27.27 in the last 52 weeks. As of Thursday, the stock was trading 5.49% below its 52-week high and 26.59% above its 52-week low. The price-earnings ratio is 13.53.

With 0.80% of outstanding shares, Royce is the company's largest guru shareholder, followed by Barrow, Hanley, Mewhinney & Strauss with 0.15%, Hotchkis & Wiley with 0.13% and Greenblatt with 0.04%.

Universal Forest Products Inc.'s (UFPI, Financial) book value per share has grown 6.20% over the past decade. The price-book ratio is 2.03 and the price-tangible book value is 2.67.

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The manufacturer of lumber and treated wood products has a market cap of $2.40 billion and an enterprise value of $2.67 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 48.57% margin of safety at $39. The share price has been as high as $42.80 and as low as $24.14 in the last 52 weeks. As of Thursday, the stock was trading 10.63% below its 52-week high and 58.45% above its 52-week low. The price-earnings ratio is 14.96.

Ken Fisher (Trades, Portfolio) is the company's largest guru shareholder with 0.94% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 0.27% and Simons’ firm with 0.07%.

Disclosure: I do not own any stocks mentioned.

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