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Tiziano Frateschi
Tiziano Frateschi
Articles (2472)  | Author's Website |

5 Industrial Companies Boosting Book Value

Norfolk Southern makes the list

April 21, 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 April 21.

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.

Norfolk Southern

The book value per share of Norfolk Southern Corp. (NYSE:NSC) has grown 8.50% over the past 10 years. The price-book ratio is 2.61 and the price-tangible book ratio is 2.61.

The railroad company has a market cap of $39.51 billion and an enterprise value of $51.67 billion.

According to the discounted cash flow calculator, the stock is undervalued and is trading with a 51.71% margin of safety at $153.7. The share price has been as high as $219.88 and as low as $112.62 in the last 52 weeks. As of Tuesday, the stock was trading 30.10% below its 52-week high and 36.48% above its 52-week low. The price-earnings ratio is 15.0.

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With 0.32% of outstanding shares, Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder, followed by Andreas Halvorsen (Trades, Portfolio) with 0.24% and Ken Fisher (Trades, Portfolio) with 0.15%.

Kansas City Southern

Kansas City Southern's (NYSE:KSU) book value per share has grown 8.70% over the past decade. The price-book ratio is 2.85 and the price-tangible book ratio is 2.94.

The rail transportation company has a market cap of $12.46 billion and an enterprise value of $16 billion.

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According to the DCF calculator, the stock is undervalued and is trading with a 22.79% margin of safety at $131.23 The share price has been as high as $178.59 and as low as $92.86 in the last 52 weeks. As of Tuesday, the stock was trading 26.52% below its 52-week high and 41.32% above its 52-week low. The price-earnings ratio is 21.98.

With 0.77% of outstanding shares, Pioneer Investments is the company's largest guru shareholder, followed by Fisher with 0.47% and Steven Cohen (Trades, Portfolio) with 0.09%.

Snap-on

Snap-on Inc.'s (NYSE:SNA) book value per share has grown 11% over the past decade. The price-book ratio is 1.84 and the price-tangible book ratio is 2.79.

The company, which manufactures tools and software for professional technicians, has a market cap of $6.27 billion and an enterprise value of $7.31 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 60.19% margin of safety at $114.66. The share price has been as high as $172.61 and as low as $90.72 in the last 52 weeks. As of Tuesday, the stock was trading 33.57% below its 52-week high and 26.39% above its 52-week low. The price-earnings ratio is 9.23.

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John Rogers (Trades, Portfolio) is the company's largest guru shareholder with 1.79% of outstanding shares, followed by the T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.77% and Richard Pzena (Trades, Portfolio) with 0.63%.

China Southern Airlines

The book value per share of China Southern Airlines Co. Ltd. (NYSE:ZNH) has grown 14.90% over the past 10 years. The price-book ratio is 0.98 and the price to tangible book ratio is 0.97.

The Chinese state-owned airline has a market cap of $5.9 billion and an enterprise value of $33.27 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 55.99% margin of safety at $22.94. The share price has been as high as $46.46 and as low as $18.45 in the last 52 weeks. As of Tuesday, the stock was trading 50.62% below its 52-week high and 24.34% above its 52-week low. The price-earnings ratio is 7.86.

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With 0.16% of outstanding shares, Jim Simons (Trades, Portfolio)’ Renaissance Technologies is the company's largest guru shareholder.

Quanta Services

Quanta Services Inc.'s (NYSE:PWR) book value per share has grown 6.30% over the past decade. The price-book ratio is 1.24 and price-tangible book ratio is 3.10.

The contracting services and infrastructure solutions provider has a market cap of $4.63 billion.

According to the DCF calculator, the stock is undervalued with a 28.56% margin of safety at $33.64. The share price has been as high as $44.09 and as low as $23.77 in the last 52 weeks. As of Tuesday, the stock was trading 23.70% below its 52-week high and 41.52% above its 52-week low. The price-earnings ratio is 12.32.

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NWQ Managers (Trades, Portfolio) is a notable shareholder of the company with 0.65% of outstanding shares, followed by Louis Moore Bacon (Trades, Portfolio) with 0.13% and Pioneer Investments with 0.11%.

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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