As of Wednesday, the GuruFocus All-in-One Screener found the following stocks have low price-earnings ratios and have been bought by gurus. While some of them are great investments, others need to be checked again, according to the discounted cash flow calculator.
Micro Focus International
With a market cap of $4.80 billion, Micro Focus International PLC (MFGP, Financial) is trading with a price-earnings ratio of 3.2. The stock has tumbled 35% over the last 12 months and is now 47.33% below the 52-week high and 15.12% above the 52-week low.
The software solutions provider has a GuruFocus profitability rating of 9 out of 10. The return on equity of 26.92% and return on assets of 11.74% are outperforming 85% of companies in the software industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.57 is below the industry median of 2.21.
The company’s largest guru shareholder is Dodge & Cox with 10.69% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 2.37% and Sarah Ketterer (Trades, Portfolio) with 0.20%.
Companhia Siderurgica Nacional
With a $4.79 billion market cap, Companhia Siderurgica Nacional (SID, Financial) is trading with a price-earnings ratio of 7.86. According to the DCF calculator, the stock has a fair value of $5.14 while trading at $3.45. The share price has risen 33% over the past 12 months and is now 26.75% below the 52-week high and 40.24% above the 52-week low.
GuruFocus gave the steel producer a profitability rating of 7 out of 10. The return on equity of 28.04% and return on assets of 5.11% are outperforming 73% of companies in the steel industry. Its financial strength is rated 3 out of 10. The cash-debt ratio of 0.09 is below the industry median of 0.26.
Jim Simons (Trades, Portfolio)’ Renaissance Technologies is the company’s largest guru shareholder with 0.30% of outstanding shares.
Enable Midstream Partners
With a market cap of $4.53 billion, Enable Midstream Partners LP (ENBL, Financial) is trading with a price-earnings ratio of 8.83 and a price-book ratio of 0.61. According to the DCF calculator, the stock has a fair value of $9.31 while trading at about $10.42. Shares have fallen 31.34% over the last 12 months and are now trading 36.81% below the 52-week high and 18.14% above the 52-week low.
GuruFocus gave the midstream energy company a profitability rating of 6 out of 10. The return on equity of 6.84% and return on assets of 4.48% are outperforming 65% of companies in the oil and gas industry. The equity-asset ratio of 0.6 is above the industry median of 0.47.
The company’s largest guru shareholder is Simons’ firm with 0.02% of outstanding shares.
Ashland Global Holdings
Ashland Global Holdings Inc. (ASH, Financial) has a market cap of $4.50 billion and is trading with a price-earnings ratio of 9.13 and a price-book ratio of 1.26. According to the DCF calculator, the stock has a fair value of $4.07 while trading at about $74.76. Shares have risen 3% over the last 12 months and are currently trading 7.95% below the 52-week high and 6.04% above the 52-week low.
GuruFocus gave the specialty chemicals producer a profitability rating of 5 out of 10. The return on equity of 14.98% and return on assets of 6.41% are outperforming 66% of companies in the chemicals industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.14 is far below the industry median of 0.61.
With 2.49% of outstanding shares, Diamond Hill Capital (Trades, Portfolio) is the company’s largest guru shareholder, followed by Leon Cooperman (Trades, Portfolio) with 1.28%, Mario Gabelli (Trades, Portfolio) with 0.39% and Joel Greenblatt (Trades, Portfolio) with 0.12%
PacWest Bancorp
PacWest Bancorp (PACW, Financial) has a market cap of $4.49 billion. Its shares are trading with a price-earnings ratio of 9.74 and a price-book ratio of 0.91. According to the DCF calculator, the stock has a fair value of $41.09 while trading at $37.46. Shares have advanced 6.24% over a 12-month period and are currently trading 9.95% below the 52-week high and 14.77% above the 52-week low.
The commercial banking services provider has a GuruFocus profitability rating of 4 out of 10. The return on equity of 9.55% and return on assets of 1.79% are outperforming 50% of companies in the banks industry. Its financial strength is rated 2 out of 10. The cash-debt ratio of 0.43 is below the industry median of 1.11.
The company’s largest guru shareholder is Ken Fisher (Trades, Portfolio) with 0.62% of outstanding shares, followed by NWQ Managers (Trades, Portfolio) with 0.55%, Pioneer Investments (Trades, Portfolio) with 0.12% and Caxton Associates (Trades, Portfolio) with 0.01%.
VEON
VEON Ltd. (VEON, Financial) has a market cap of $4.48 billion. Its shares are trading with a price-earnings ratio of 7.9 and a price-book ratio of 3.59. According to the DCF calculator, the stock has a fair value of $3.53 while trading at $2.56. Shares were stable over a 12-month period and are currently trading 21.83% below the 52-week high and 23.67% above the 52-week low.
The Amsterdam-based telecom company has a GuruFocus profitability rating of 6 out of 10. The return on equity of 17.49% and return on assets of 3.68% are outperforming 61% of companies in the telecommunication services industry. Its financial strength is rated 3 out of 10. The cash-debt ratio of 0.19 is below the industry median of 0.27.
The company’s largest guru shareholder is Simons’ firm with 0.17% of outstanding shares, followed by the Lee Ainslie (Trades, Portfolio) with 0.10% and Howard Marks (Trades, Portfolio) with 0.10%.
Disclosure: I do not own any stocks mentioned.
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