6 Stocks Trading With Low Price-Sales Ratios

Tyson Foods tops the list

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Feb 06, 2020
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According to the GuruFocus All-In-One Screener, a Premium feature, the following companies were trading with low price-sales ratios as of Feb. 6.

Tyson Foods

Tyson Foods Inc. (TSN, Financial) was trading around $81 per share with a price-sales ratio of 0.68 and a price-earnings ratio of 14.6.

The company, which processes raw and value-added beef, chicken, pork and prepared food products, has a market cap of $29.46 billion. The stock has risen at an annualized rate of 19.92% over the past decade.

The discounted cash flow calculator gives the company a fair value of $59.07, suggesting it is overpriced by 42%, while the Peter Lynch value gives the stock a fair price of $89.79.

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The company's largest guru shareholder is the T Rowe Price Equity Income Fund (Trades, Portfolio) with 1.18% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 0.18%, Steven Cohen (Trades, Portfolio) with 0.18% and Ken Heebner (Trades, Portfolio) with 0.11%.

Johnson Controls International

As of Thursday, Johnson Controls International PLC (JCI) was trading around $40 per share with a price-sales ratio of 1.38 and a price-earnings ratio of 6.33.

The company, which operates in the construction industry, has a market cap of $30.37 billion. The stock has risen at an annualized rate of 6.86% over the last 10 years.

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The DCF calculator gives the stock a fair value of $14.98, suggesting it is overpriced by 165%. The Peter Lynch fair value gives the stock a fair price of $19.65.

With 12.29% of outstanding shares, Dodge & Cox is the company's largest guru shareholder, followed by Barrow, Hanley, Mewhinney & Strauss with 4.09% and the T Rowe Price Equity Income Fund with 0.52%.

Motorola Solutions

Motorola Solutions Inc. (MSI, Financial) was trading around $179 on Thursday with a price-sales ratio of 4.03 and a price-earnings ratio of 30.

The company, which manufactures communication equipment, has a market cap of $30.27 billion. The stock has risen at an annualized rate of 21.91% over the past decade.

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The DCF calculator gives the company a fair value of $64.1, suggesting it is overpriced with a 175% margin of safety. The Peter Lynch earnings line gives the stock a fair price of $88.65.

The company's largest guru shareholder is Philippe Laffont (Trades, Portfolio) with 0.93% of outstanding shares, followed by Mairs and Power (Trades, Portfolio) with 0.18% and David Rolfe (Trades, Portfolio) with 0.12%.

Cintas

Cintas Corp. (CTAS, Financial) was trading around $294 with a price-sales ratio of 4.45 and a price-earnings ratio of 34.28.

The business services company has a market cap of $30.23 billion. The stock has climbed at an annualized rate of 28.49% over the last 10 years.

The DCF calculator gives the company a fair value of $224.47, suggesting it is overpriced by 29%. The Peter Lynch fair value gives the stock a fair price of $127.2.

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With 0.40% of outstanding shares, Jim Simons (Trades, Portfolio)’ Renaissance Technologies is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.07% and Joel Greenblatt (Trades, Portfolio)’s Gotham Asset Management with 0.06%

Public Service Enterprise Group

Public Service Enterprise Group Inc. (PEG, Financial) was trading around $58.6 with a price-sales ratio of 2.99 and a price-earnings ratio of 20.73.

The company, which provides regulated gas and electricity delivery services, has a market cap of $29.98 billion. The stock has risen at an annualized rate of 9.77% over the past decade.

The DCF calculator gives the company a fair value of $30.61, suggesting it is overpriced by 93%. The Peter Lynch earnings line gives the stock a fair price of $42.9.

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The company's largest guru shareholder is Pioneer Investments with 0.37% of outstanding shares, followed by Simons’ firm with 0.27%.

EBay

Shares of eBay Inc. (EBAY, Financial) were trading around $38.48 on Thursday with a price-sales ratio of 3.06 and a price-earnings ratio of 18.52.

The company, which operates an e-commerce platform, has a market cap of $30.81 billion. The stock has climbed at an annualized rate of 14.70% over the last decade.

The DCF calculator gives the company a fair value of $22.37, suggesting it is overpriced by 65%. The Peter Lynch fair value gives the stock a fair price of $33.

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With 2.05% of outstanding shares, Seth Klarman (Trades, Portfolio) is the company's largest guru shareholder, followed by Paul Singer (Trades, Portfolio) with 1.22% and Bill Nygren (Trades, Portfolio) with 0.80%.

Disclosure: I do not own any stocks mentioned.

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