Companies that are growing their earnings are often good investments because they can return a solid profit to investors. According to the discounted cash flow calculator as of Dec. 17, the following undervalued companies have grown their earnings per share over a five-year period.
Encore Wire Corp
Encore Wire Corp.'s (WIRE) earnings per share have grown 11.90% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 39.54% margin of safety at $57.40 per share. The price-earnings ratio is 16.54. The share price has been as high as $62.08 and as low as $45.84 in the last 52 weeks; it is currently 7.54% below its 52-week high and 25.22% above its 52-week low.
The electrical wire and cable manufacturer has a market cap of $1.20 billion and an enterprise value of $999.28 million.
With 3.70% of outstanding shares, Barrow, Hanley, Mewhinney & Strauss is the company's largest guru shareholder, followed by Chuck Royce (Trades, Portfolio) with 0.66%, Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.51% and HOTCHKIS & WILEY with 0.25%.
Encore Capital Group Inc.Â
The earnings per share of Encore Capital Group Inc. (ECPG) have grown 4.10% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 65.78% margin of safety at $36.73 per share. The price-earnings ratio is 6.71. The share price has been as high as $39.19 and as low as $21.49 in the last 52 weeks; it is currently 6.28% below its 52-week high and 70.29% above its 52-week low.
The company, which provides debt-recovery solutions, has a market cap of $1.14 billion and an enterprise value of $4.39 billion.
The company's largest guru shareholder is Barrow, Hanley, Mewhinney & Strauss with 0.14% of outstanding shares.
ePlus Inc.
ePlus Inc.'s (PLUS) earnings per share have grown 14.30% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 40.86% margin of safety at $83 per share. The price-earnings ratio is 16.84. The share price has been as high as $99.63 and as low as $65.52 in the last 52 weeks; it is currently 16.69% below its 52-week high and 26.68% above its 52-week low.
The information technology solutions provider has a market cap of $1.21 billion and an enterprise value of $1.17 billion.
With 0.35% of outstanding shares, Simons’ Renaissance Technologies is the company's largest guru shareholder, followed by HOTCHKIS & WILEY with 0.27% and Royce with 0.22%.
iRobot Corp
The earnings per share of iRobot Corp. (IRBT) have grown 22% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 45.37% margin of safety at $48.99 per share. The price-earnings ratio is 15.55. The share price has been as high as $132.88 and as low as $42.41 in the last 52 weeks; it is currently 63.13% below its 52-week high and 15.52% above its 52-week low.
The company has a market cap of $1.38 billion and an enterprise value of $1.36 billion.
The company's largest guru shareholder is PRIMECAP Management (Trades, Portfolio) with 14.11% of outstanding shares, followed by Lee Ainslie (Trades, Portfolio)’s Maverick Capital with 0.26% and John Hussman (Trades, Portfolio) with 0.12%.
Big Lots Inc.
Big Lots Inc.'s (BIG) earnings per share have grown 12.60% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 62% margin of safety at $26.95 per share. The price-earnings ratio is 4.16. The share price has been as high as $39.53 and as low as $45.36 in the last 52 weeks; it is currently 31.82% below its 52-week high and 45.36% above its 52-week low.
The company, which operates discount retail stores, has a market cap of $1.05 billion and an enterprise value of $2.76 billion.
With 0.87% of outstanding shares, Bestinfond (Trades, Portfolio) is the company's largest guru shareholder, followed by the Barrow, Hanley, Mewhinney & Strauss with 0.29% and Simons’ firm with 0.25%.
John B Sanfilippo & Son Inc.
The earnings per share of John B Sanfilippo & Son Inc. (JBSS) have grown 6.80% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 18.85% margin of safety at $91.94 per share. The price-earnings ratio is 23.10. The share price has been as high as $107.86 and as low as $53.12 in the last 52 weeks; it is currently 14.76% below its 52-week high and 73.08% above its 52-week low.
The nut products distributer has a market cap of $1.05 billion and an enterprise value of $1.09 billion.
The company's largest guru shareholder is Royce with 1.77% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 1.08%, Mario Gabelli (Trades, Portfolio)’s GAMCO Investors with 0.17%, Simons’ firm with 0.14%, Paul Tudor Jones (Trades, Portfolio) with 0.05% and Joel Greenblatt (Trades, Portfolio)’s Gotham Asset Management with 0.05%.
Disclosure: I do not own any stocks mentioned.
Read more here:
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- 6 Dividend Stocks Trading at a Discount
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