As of Monday, the GuruFocus All-in-One Screener, a Premium feature, found that the following utility stocks have low price-earnings ratios and have been bought by gurus. While some of them are great value investments, others may need to be researched more carefully, according to the discounted cash flow calculator.
Central Puerto
With a market cap of $391 million, Central Puerto SA (CEPU) has a price-earnings ratio of 4.57. According to the DCF calculator, the stock has a fair value of $10.59 while trading at $2.60.
The stock has lost 67% over the last 12 months and is now 76.19% below the 52-week high and 39.78% above the 52-week low.
The company has a GuruFocus profitability rating 9 out of 10. The return on equity of 16.97% and return on assets of 8.76% are outperforming 81% of companies in the utilities, regulated industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.24 is near the industry median of 0.25.
Jim Simons (Trades, Portfolio)’ Renaissance Technologies sold shares of the company during the fourth quarter of 2019 after a loss of 28%.
Energy Company Of Minas Gerais
With a $391 million market cap, Energy Company of Minas Gerais (CIG) is trading with a price-earnings ratio of 3.3.
The share price has declined 44.79% over the past 12 months and is now 55.72% below the 52-week high and 26.39% above the 52-week low.
The Brazilian power company has a GuruFocus profitability rating of 8 out of 10. The return on equity of 26.95% and return on assets of 7.76% are outperforming 85% of companies in the utilities industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.19 is below the industry median of 0.25.
Simons’ firm is the company’s largest guru shareholder with 0.18% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.15%.
Vistra Energy
With a market cap of $8.69 billion, Vistra Energy Corp. (VST) is trading with a price-earnings ratio of 9.83 and a price-book ratio of 1.18. According to the DCF calculator, the stock has a fair value of $19.37 while trading at about $17.79.
Shares have tumbled 28.21% over the last 12 months and are now 36.37% below the 52-week high and 57.43% above the 52-week low.
The independent power producer has a Gurufocus profitability rank of 5 out of 10. The company's return on equity of 11.8% and return on assets of 3.54% are outperforming 66% of competitors. The cash-debt ratio of 0.03 is below the industry median of 0.17.
The company’s largest guru shareholder is Howard Marks (Trades, Portfolio)’ Oaktree Capital Management with 5.58% of outstanding shares, followed by Simons’ firm with 1.25% and George Soros (Trades, Portfolio) with 0.36%.
Enel America
Enel America SA (ENIA) has a market cap of $12.23 billion and is trading with a price-earnings ratio of 8.03. According to the DCF calculator, the stock has a fair value of $12.63 while trading at about $8.03.
Shares have declined 4.11% over the last 12 months and are now trading 28.37% below the 52-week high and 53.83% above the 52-week low.
The company delivers electricity in Brazil, Peru, Colombia and Argentina. GuruFocus gives the company a profitability rating of 8 out of 10. The return on equity of 22.52% and return on assets of 6.06% are outperforming 78% of companies in the utilities, regulated industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.35 is close to the industry median of 0.36.
With 0.31% of outstanding shares, Simons’ firm is the company’s largest guru shareholder, followed by Jeremy Grantham (Trades, Portfolio)’s GMO with 0.11% and Pioneer Investments (Trades, Portfolio) with 0.05%.
Pampa Energy
Pampa Energy SA (PAM) has a market cap of $678 million. Its shares are trading with a price-earnings ratio of 2.34. According to the DCF calculator, the stock has a fair value of $102.84 while trading at $10.42.
Share prices have declined 57.59% over the past 12 months and are currently trading 71.38% below the 52-week high and 19.50% above the 52-week low.
The energy company has a GuruFocus profitability rating of 8 out of 10. The return on equity of 39.17% and return on assets of 12.03% are outperforming 96% of competitors. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.33 is above the industry median of 0.25.
The company’s largest guru shareholder is Marks’ firm with 1.16% of outstanding shares, followed by Grantham’s firm with 0.57% and Pioneer Investments (Trades, Portfolio) with 0.09%.
Centrais Eletricas Brasileiras
Centrais Eletricas Brasileiras SA (EBR) has a market cap of $7.89 billion. Its shares are trading with a price-earnings ratio of 4.60 and a price-book ratio of 0.49. According to the DCF calculator, the stock has a fair value of $14.66 while trading at $5.03.
Shares have declined 40% over the past 12-month period and are currently trading 56.97% below the 52-week high and 69.93% above the 52-week low.
The Brazilian government-controlled energy company has a GuruFocus profitability rating of 5 out of 10. The return on equity of 17.4% and return on assets of 5.96% are outperforming 77% of companies in the utilities, regulated industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.34 is above the industry median of 0.25.
The company’s largest guru shareholder is Simons’ firm with 0.06% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.02%.
Disclosure: I do not own any stocks mentioned.
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