Companies that are growing their earnings are often good investments because they can return a solid profit to investors.
According to the GuruFocus discounted cash flow calculator as of March 13, the following undervalued companies have a high margin of safety and have grown their earnings per share over a five-year period.
Usana Health Sciences
Usana Health Sciences Inc.'s (USNA, Financial) earnings per share have grown 8.6% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 30% margin of safety at $60.70 per share. The price-earnings ratio is 13.73. The share price has been as high as $101.15 and as low as $58.3 in the last 52 weeks; it is currently 40% below its 52-week high and 4% above its 52-week low.
The company, which provides personal-care and nutritional products, has a market cap of $1.31 billion and an enterprise value of $1.08 billion.
With 7.51% of outstanding shares, Jim Simons (Trades, Portfolio)’ Renaissance Technologies is the company's largest guru shareholder, followed by Hotchkis & Wiley with 0.43% and Chuck Royce (Trades, Portfolio) with 0.02%.
Grand Canyon Education
The earnings per share of Grand Canyon Education Inc. (LOPE, Financial) have grown 18.6% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 53.12% margin of safety at $71.67 per share. The price-earnings ratio is 13.35. The share price has been as high as $132.72 and as low as $69.81 in the last 52 weeks; it is currently 46% below its 52-week high and 2.66% above its 52-week low.
The educational support services company has a market cap of $3.5 billion and an enterprise value of $3.53 billion.
The company's largest guru shareholder is Pioneer Investments (Trades, Portfolio) with 0.1% of outstanding shares.
John B Sanfilippo & Son
John B Sanfilippo & Son Inc.'s (JBSS, Financial) earnings per share have grown 6.8% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 46.35% margin of safety at $69 per share. The price-earnings ratio is 15.27. The share price has been as high as $107.86 and as low as $66.35 in the last 52 weeks; it is currently 35.99% below its 52-week high and 4.05% above its 52-week low.
The processor and distributor of peanuts, almonds and walnuts has a market cap of $844 million and an enterprise value of $884 million.
The company's largest guru shareholder is Royce with 1.32% of outstanding shares, followed by Pioneer Investments with 1.19% and Simons’ firm with 0.5%.
Ingredion
The earnings per share of Ingredion Inc. (INGR, Financial) have grown 5% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 52.3% margin of safety at $69.52 per share. The price-earnings ratio is 11.36. The share price has been as high as $99.51 and as low as $67.94 in the last 52 weeks; it is currently 30.14% below its 52-week high and 2.33% above its 52-week low.
The company, which produces key ingredients like starch, modified starch and starch sugars, has a market cap of $4.47 billion and an enterprise value of $6.23 billion.
The company's largest guru shareholder is Simons’ firm with 0.14% of outstanding shares, followed by Pioneer Investments with 0.13% and Mario Gabelli (Trades, Portfolio) with 0.07%.
National Beverage
National Beverage Corp.'s (FIZZ, Financial) earnings per share have grown 32.30% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 38% margin of safety at $38.88 per share. The price-earnings ratio is 15.13. The share price has been as high as $70.1 and as low as $35.71 in the last 52 weeks; it is currently 44.54% below its 52-week high and 8.88% above its 52-week low.
The soft drink manufacturer has a market cap of $1.89 billion and an enterprise value of $1.67 billion.
With 5.77% of outstanding shares, Simons’ firm is the company's largest guru shareholder, followed by GAMCO Investors with 0.56% and Paul Tudor Jones (Trades, Portfolio) with 0.04%.
Big Lots
The earnings per share of Big Lots Inc. (BIG, Financial) have grown 18.10% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 82% margin of safety at $13 per share. The price-earnings ratio is 2.11. The share price has been as high as $39.53 and as low as $12.3 in the last 52 weeks; it is currently 66.91% below its 52-week high and 6.34% above its 52-week low.
The operator of discount retail stores has a market cap of $506 million and an enterprise value of $1.98 billion.
Notable shareholders of the company are Louis Moore Bacon (Trades, Portfolio) with 0.81% of outstanding shares, as well as Robert Olstein (Trades, Portfolio) and Joel Greenblatt (Trades, Portfolio) with 0.23% each.
Disclosure: I do not own any stocks mentioned.
Read more here:
- 5 Dividend Stocks Near 52-Week Highs
- 5 Guru Stocks Near 52-Week Highs
- 6 Guru Stocks Expected to Boost Earnings
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