5 Tech Companies Boosting Book Value

Intel makes the list

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Mar 16, 2020
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According to the GuruFocus All-in-One Screener, a Premium feature, the following companies have grown their book value per share over the past decade through March 16.

Book value per share is calculated as total equity minus preferred stock, divided by shares outstanding. Theoretically, it is what shareholders will receive if a company is liquidated. Total equity is a balance sheet item and is equal to total assets minus total liabilities.

Since the book value per share may not reflect the company’s true value, some investors check the tangible book value to confirm their investment ideas.

Intel

The book value per share of Intel Corp. (INTC) has grown 8.6% over the past 10 years. The price-book ratio is 3.01 and the price-tangible book ratio is 5.76.

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The chipmaker has a market cap of $232 billion and an enterprise value of $248 billion.

According to the discounted cash flow calculator, the stock is undervalued and is trading with a 28% margin of safety at $54.40. The share price has been as high as $69.29 and as low as $42.86 in the last 52 weeks. As of Friday, the stock was trading 21.45% below its 52-week high and 26.99% above its 52-week low. The price-earnings ratio is 11.53.

With 0.63% of outstanding shares, Ken Fisher (Trades, Portfolio) is the company's largest guru shareholder, followed by PRIMECAP Management (Trades, Portfolio) with 0.58% and Chris Davis (Trades, Portfolio) with 0.20%.

Wipro

Wipro Ltd.'s (WIT) book value per share has grown 14.4% over the past decade. The price-book ratio is 2.09 and the price-tangible book ratio is 2.81.

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The IT services provider has a market cap of $17.41 billion and an enterprise value of $14.17 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 17.07% margin of safety at $3.06. The share price has been as high as $4.63 and as low as $2.82 in the last 52 weeks. As of Monday, the stock was trading 33.91% below its 52-week high and 8.51% above its 52-week low. The price-earnings ratio is 11.84.

With 0.08% of outstanding shares, Fisher is the company's largest guru shareholder, followed by Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.06%.

Skyworks Solutions

Skyworks Solutions Inc.'s (SWKS) book value per share has grown 15.40% over the past decade. The price-book ratio is 3.32 and the price-tangible book ratio is 4.75.

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The producer of semiconductors for wireless devices has a market cap of $14.12 billion and an enterprise value of $13.08 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 39% margin of safety at $83. The share price has been as high as $128.48 and as low as $66.29 in the last 52 weeks. As of Monday, the stock was trading 35.40% below its 52-week high and 25.21% above its 52-week low. The price-earnings ratio is 17.36.

Ken Heebner (Trades, Portfolio)’s Capital Growth Management is the company's largest guru shareholder with 0.19% of outstanding shares, followed by Steven Cohen (Trades, Portfolio)’s Point72 Asset Management with 0.08% and Pioneer Investments (Trades, Portfolio) with 0.06%.

Synnex

The book value per share of Synnex Corp. (SNX) has grown 11.20% over the past 10 years. The price-book ratio is 1.24 and the price to tangible book ratio is 12.61.

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The provider of outsourcing services has a market cap of $4.75 billion and an enterprise value of $7.54 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 45% margin of safety at $92. The share price has been as high as $153.07 and as low as $78.55 in the last 52 weeks. As of Monday, the stock was trading 39.66% below its 52-week high and 17.58% above its 52-week low. The price-earnings ratio is 9.49.

With 4.27% of outstanding shares, Sarah Ketterer (Trades, Portfolio)’s Causeway Capital Management is the company's largest guru shareholder, followed by Simons’ firm with 0.54% and Pioneer Investments (Trades, Portfolio) with 0.12%.

Celestica

Celestica Inc.'s (CLS) book value per share has grown 8.8% over the past decade. The price-book ratio is 0.44 and the price-tangible book ratio is 0.65.

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The provider of electronic manufacturing services in the United States has a market cap of $556 million and an enterprise value of $764 million.

According to the DCF calculator, the stock is overpriced by 36% at $4.34. The share price has been as high as $9.61 and as low as $4 in the last 52 weeks. As of Monday, the stock was trading 54.84% below its 52-week high and 8.5% above its 52-week low. The price-earnings ratio is 8.88.

Richard Pzena (Trades, Portfolio) is the company's largest guru shareholder with 4.12% of outstanding shares, followed by Donald Smith (Trades, Portfolio) with 2.69%.

Disclosure: I do not own any stocks mentioned.

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