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Tiziano Frateschi
Tiziano Frateschi
Articles (2357)  | Author's Website |

5 Cyclical Companies Boosting Book Value

Gentex makes the list

March 26, 2020 | About:

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 26.

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.

Asbury Automotive Group

The book value per share of Asbury Automotive Group Inc. (ABG) has grown 12.7% over the past 10 years. The price-book ratio is 1.75 and the price-tangible book ratio is 3.51.

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The automobile dealer has a market cap of $1.13 billion and an enterprise value of $2.79 billion.

According to the discounted cash flow calculator, the stock is undervalued and is trading with a 78% margin of safety at $58. The share price has been as high as $123.45 and as low as $39.36 in the last 52 weeks. As of Thursday, the stock was trading 52.47% below its 52-week high and 49.06% above its 52-week low. The price-earnings ratio is 6.17.

With 10.99% of outstanding shares, David Abrams (Trades, Portfolio) is the company's largest guru shareholder, followed by Chuck Royce (Trades, Portfolio) with 0.26% and HOTCHKIS & WILEY with 0.16%.

Dick’s Sporting Goods

Dick’s Sporting Goods Inc.'s (DKS) book value per share has grown 7.2% over the past decade. The price-book ratio is 1.04 and the price-tangible book ratio is 1.29.

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The retailer of athletic apparel and footwear has a market cap of $1.8 billion and an enterprise value of $4.8 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 55.65% margin of safety at $20.88. The share price has been as high as $49.80 and as low as $13.46 in the last 52 weeks. As of Thursday, the stock was trading 58.07% below its 52-week high and 55.13% above its 52-week low. The price-earnings ratio is 6.26.

With 0.46% of outstanding shares, Louis Moore Bacon (Trades, Portfolio) is the company's largest guru shareholder, followed by Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.16% and Richard Snow (Trades, Portfolio) with 0.08%.

Gentex

Gentex Corp.'s (GNTX) book value per share has grown 11.6% over the past decade. The price-book ratio is 2.7 and the price-tangible book ratio is 3.86.

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The producer of equipment for the detection of smoke has a market cap of $5.2 billion and an enterprise value of $4.77 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 52% margin of safety at $20.70. The share price has been as high as $31.27 and as low as $3.86 in the last 52 weeks. As of Thursday, the stock was trading 33.74% below its 52-week high and 6.37% above its 52-week low. The price-earnings ratio is 12.56.

Simons’ firm is the company's largest guru shareholder with 1.28% of outstanding shares, followed by Steven Cohen (Trades, Portfolio)’s Point72 Asset Management with 0.91% and Royce with 0.81%.

Lithia Motors

The book value per share of Lithia Motors Inc. (LAD) has grown 19.4% over the past 10 years. The price-book ratio is 1.42 and the price to tangible book ratio is 2.95.

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The retailer of new and second-hand cars and other vehicles has a market cap of $2 billion and an enterprise value of $5.75 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 73% margin of safety at $88. The share price has been as high as $165.27 and as low as $55.74 in the last 52 weeks. As of Thursday, the stock was trading 46.72% below its 52-week high and 57.98% above its 52-week low. The price-earnings ratio is 7.60.

With 9.58% of outstanding shares, Abrams is the company's largest guru shareholder, followed by Ken Heebner (Trades, Portfolio) with 0.68% and Simons’ firm with 0.65%.

Miller Industries

Miller Industries Inc.'s (MLR) book value per share has grown 5.6% over the past decade. The price-book ratio is 1.19 and the price-tangible book ratio is 1.24.

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The manufacturer of towing vehicle and recovery equipment has a market cap of $305 million and an enterprise value of $290 million.

According to the DCF calculator, the stock is undervalued with a 64% margin of safety at $26.82. The share price has been as high as $38.18 and as low as $25.25 in the last 52 weeks. As of Thursday, the stock was trading 29.75% below its 52-week high and 6.22% above its 52-week low. The price-earnings ratio is 7.8.

Royce is a company's notable guru shareholder with 11.74% of outstanding shares, followed by HOTCHKIS & WILEY with 6.6%.

Disclosure: I do not own any stocks mentioned.

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About the author:

Tiziano Frateschi
You can read about me on www.theextraincome.info, which gives suggestions on position trading.

Visit Tiziano Frateschi's Website


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