6 Utilities Trading With Low Price-Sales Ratios

Dominion Energy on the list

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Apr 22, 2020
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According to the GuruFocus All-In-One Screener, a Premium feature, the following utilities were trading with low price-sales ratios as of April 22.

Dominion Energy

Shares of Dominion Energy Inc. (D) were trading around $76.61 with a price-sales ratio of 3.74 and a price-earnings ratio of 45.87.

The integrated energy company has an $64.20 billion market cap. The stock has risen at an annualized rate of 9.56% over the past decade.

The discounted cash flow calculator gives the company a fair value of $17.87, suggesting it is overpriced by 328%, while the Peter Lynch fair value is $76.61.

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The company's largest guru shareholder is Barrow, Hanley, Mewhinney & Strauss with 1.10% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.08%.

Duke Energy

As of Wednesday, Duke Energy Corp. (DUK) was trading around $85.44 per share with a price-sales ratio of 2.48 and a price-earnings ratio of 16.85.

The company, which operates in electric utility, gas utility and commercial renewables, has a market cap of $62.72 billion. The stock has risen at an annualized rate of 9.24% over the past 10 years.

The DCF calculator gives the stock a fair value of $54.95, suggesting it is overpriced by 55.45%. The Peter Lynch earnings line gives the stock a fair price of $67.20.

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With 0.85% of outstanding shares, Jim Simons (Trades, Portfolio)’ Renaissance Technologies is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.09%, Steven Cohen (Trades, Portfolio)’s Point72 Asset Management with 0.05% and Robert Bruce (Trades, Portfolio) with 0.04%.

Southern

Southern Co. (SO) was trading around $55.50 on Wednesday with a price-sales ratio of 2.73 and a price-earnings ratio of 12.31.

The electricity and natural gas distributor has a market cap of $58.66 billion. The stock has risen at an annualized rate of 8.36% over the past decade.

The DCF calculator gives the company a fair value of $48.26, suggesting it is overpriced by 15%. The Peter Lynch earnings line gives the stock a fair price of $67.56.

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With 0.74% of outstanding shares, T Rowe Price Equity Income Fund (Trades, Portfolio) is the company's largest guru shareholder, followed by Simons’ firm with 0.57% and HOTCHKIS & WILEY with 0.33%.

American Electric Power

American Electric Power Co. Inc. (AEP) was trading around $82.47 with a price-sales ratio of 2.62 and a price-earnings ratio of 21.26

The company, which provides electricity generation, transmission and distribution, has a market cap of $40.81 billion. The stock has climbed at an annualized rate of 11.87% over the past 10 years.

The DCF calculator gives the company a fair value of $41.52, suggesting the stock is overpriced by 98.61%. The Peter Lynch earnings line gives the stock a fair price of $59.85.

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Some notable guru shareholders are Simons’ firm with 0.94% of outstanding shares and Pioneer Investments (Trades, Portfolio) with 0.22%.

National Grid

National Grid PLC (NGG) was trading around $55.18 with a price-sales ratio of 2.06 and a price-earnings ratio of 20.81.

The company, which operates electric and gas transmission systems in England and Wales, has a market cap of $38.72 billion. The stock has risen at an annualized rate of 5.42% over the past decade.

The DCF calculator gives the company a fair value of $37.80, suggesting it is overpriced by 96%. The Peter Lynch earnings line gives the stock a fair price of $41.55.

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The company's largest guru shareholder is Simons’ firm with 0.97% of outstanding shares, followed by NWQ Managers (Trades, Portfolio) with 0.03%.

Sempra Energy

Sempra Energy (SRE) was trading around $119.27 with a price-sales ratio of 3.14 and a price-earnings ratio of 19.58.

The company has a market cap of $34.87 billion. The stock has risen at an annualized rate of 11.39% over the past decade.

The DCF calculator gives the company a fair value of $65.17, suggesting it is overpriced by 83%. The Peter Lynch earnings line gives the stock a fair price of $91.35.

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The company's largest guru shareholder is T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.34% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.07% and David Carlson (Trades, Portfolio) with 0.03%.

Disclosure: I do not own any stocks mentioned.

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