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 April 1, the following undervalued companies have a high margin of safety and have grown their earnings per share over a five-year period.
TFI International
TFI International Inc.'s (TFII, Financial) earnings per share have grown 27.30% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 73% margin of safety at $20.73 per share. The price-earnings ratio is 8.58. The share price has been as high as $35.98 and as low as $15.224 in the last 52 weeks; it is currently 42.38% below its 52-week high and 36.02% above its 52-week low.
The Canadian logistics and transportation company has a market cap of $1.93 billion and an enterprise value of $3.5 billion.
Ryanair
The earnings per share of Ryanair Holdings PLC (RYAAY, Financial) have grown 17.1% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with an 8.91% margin of safety at $20.73 per share. The price-earnings ratio is 9.73. The share price has been as high as $96.79 and as low as $44.44 in the last 52 weeks; it is currently 46.02% below its 52-week high and 17.57% above its 52-week low.
The low-cost airline has a market cap of $11.57 billion and an enterprise value of $12.40 billion.
The company's largest guru shareholder is David Herro (Trades, Portfolio) with 4.98% of outstanding shares, followed by Sarah Ketterer (Trades, Portfolio)’s Causeway Capital Management with 2.93% and Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 1.59%.
Grupo Aeroportuario del Pacifico
Grupo Aeroportuario del Pacifico SAB de CV's (PAC, Financial) earnings per share have grown 20% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 43.88% margin of safety at $50.93 per share. The price-earnings ratio is 13.29. The share price has been as high as $135.31 and as low as $44.28 in the last 52 weeks; it is currently 62.36% below its 52-week high and 15.02% above its 52-week low.
The Mexican airport operator has a market cap of $3.03 billion and an enterprise value of $2.76 billion.
The company's largest guru shareholder is Simons’ firm with 1.84% of outstanding shares.
Old Dominion Freight Lines
The earnings per share of Old Dominion Freight Lines Inc. (ODFL, Financial) have grown 22.7% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with an 11.85% margin of safety at $127.98 per share. The price-earnings ratio is 24.92. The share price has been as high as $151.47 and as low as $87.25 in the last 52 weeks; it is currently 15.51% below its 52-week high and 46.68% above its 52-week low.
The less than truckload shipping company has a market cap of $15.19 billion and an enterprise value of $14.83 billion.
The company's largest guru shareholder is PRIMECAP Management (Trades, Portfolio) with 0.33% of outstanding shares, followed by Jerome Dodson (Trades, Portfolio) with 0.19% and Pioneer Investments (Trades, Portfolio) with 0.08%.
Norfolk Southern
Norfolk Southern Corp.'s (NSC, Financial) earnings per share have grown 16.8% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 23.95% margin of safety at $141.69 per share. The price-earnings ratio is 13.87. The share price has been as high as $219.88 and as low as $112.62 in the last 52 weeks; it is currently 35.56% below its 52-week high and 25.81% above its 52-week low.
The railroad operator has a market cap of $36.5 billion and an enterprise value of $48.65 billion.
With 0.32% of outstanding shares, Pioneer Investments is the company's largest guru shareholder, followed by Andreas Halvorsen (Trades, Portfolio) with 0.24% and Ken Fisher (Trades, Portfolio) with 0.15%.
Marten Transport
The earnings per share of Marten Transport Ltd. (MRTN, Financial) have grown 18.7% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 10.67% margin of safety at $20.34 per share. The price-earnings ratio is 18.14. The share price has been as high as $23.39 and as low as $16.01 in the last 52 weeks; it is currently 13.04% below its 52-week high and 27.05% above its 52-week low.
The transportation company has a market cap of $1.11 billion and an enterprise value of $1.08 billion.
Notable shareholders of the company are Chuck Royce (Trades, Portfolio) with 0.19% of outstanding shares, as well as Joel Greenblatt (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) with 0.03% each.
Disclosure: I do not own any stocks mentioned.
Read more here:
- 5 Predictable Retailers With a Margin of Safety
- 5 Guru Stocks That Beat the Market
- 5 Undervalued Stocks Trading Below Peter Lynch Value
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
