Companies that are growing their earnings are often good investments because they can return a solid profit to investors.
According to GuruFocus's discounted cash flow calculator as of Dec. 29, the following undervalued companies have a high margin of safety, and they have also grown their earnings per share over a five-year period.
Hingham Institution for Savings
Hingham Institution for Savings' (HIFS) earnings per share have grown 13.8% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 34.26% margin of safety at $210 per share. The price-earnings ratio is 14.18. The share price has been as high as $211.41 and as low as $163.00 in the last 52 weeks; it is currently 1.01% below its 52-week high and 28.39% above its 52-week low.
The bank, which operates in the business of residential and commercial real estate mortgage lending, has a market cap of $446.53 million and an enterprise value of $735.87 million.
With 1.28% of outstanding shares, Jim Simons (Trades, Portfolio)’ Renaissance Technologies is the company's largest guru shareholder, followed by HOTCHKIS & WILEY with 0.68%.
Miller Industries
The earnings per share of Miller Industries Inc. (MLR) have grown 25.4% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 56.11% margin of safety at $37.20 per share. The price-earnings ratio is 11.17. The share price has been as high as $38.18 and as low as $25.90 in the last 52 weeks; it is currently 1.73% below its 52-week high and 44.86% above its 52-week low.
The company, which provides towing and recovery equipment, has a market cap of $427.73 million and an enterprise value of $412.20 million.
The company's largest guru shareholder is Chuck Royce (Trades, Portfolio) with 11.61% of outstanding shares followed by HOTCHKIS & WILEY with 8.10%, Simons with 0.79% and Jeremy Grantham (Trades, Portfolio)’s GMO LLC with 0.38%.
Mesabi Trust
Mesabi Trust's (MSB) earnings per share have grown 15% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 9.34% margin of safety at $23.48 per share. The price-earnings ratio is 9.7. The share price has been as high as $32.39 and as low as $21.31 in the last 52 weeks; it is currently 27.51% below its 52-week high and 10.18% above its 52-week low.
The royalty trust has a market cap of $308.06 million and an enterprise value of $282.12 million.
Nathan's Famous
The earnings per share of Nathan's Famous Inc. (NATH) have grown 3.5% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 16.55% margin of safety at $72.70 per share. The price-earnings ratio is 14.21. The share price has been as high as $82.18 and as low as $62.20 in the last 52 weeks; it is currently 12.86% below its 52-week high and 15.13% above its 52-week low.
The American fast food franchise company has a market cap of $302.7 million and an enterprise value of $377.28 million.
The company's largest guru shareholder is Simons’ firm with 6.06% of outstanding shares, followed by Mario Gabelli (Trades, Portfolio)’s GAMCO Investors with 5.86%.
MiX Telematics
MiX Telematics Ltd's (MIXT) earnings per share have grown 12.7% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 5% margin of safety at $12.80 per share. The price-earnings ratio is 16.51. The share price has been as high as $20.07 and as low as $11.96 in the last 52 weeks; it is currently 37.85% below its 52-week high and 4.26% above its 52-week low.
The company, which provides fleet and mobile asset management solutions, has a market cap of $274.96 million and an enterprise value of $265.45 million.
With 3.27% of outstanding shares, Simons’ firm is the company's largest guru shareholder, followed by Grantham with 0.08%.
Superior Group Of Companies
The earnings per share of Superior Group Of Companies Inc. (SGC) have grown 15.4% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 48.24% margin of safety at $13.40 per share. The price-earnings ratio is 14.93. The share price has been as high as $19.00 and as low as $12.70 in the last 52 weeks; it is currently 30.21% below its 52-week high and 4.41% above its 52-week low.
The company, which operates in the apparel and accessories manufacturing industry, has a market cap of $202.29 million and an enterprise value of $318.53 million.
The company's largest guru shareholder is Simons’ firm with 1.46% of outstanding shares.
Disclosure: I do not own any stocks mentioned.
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