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Alberto Abaterusso
Alberto Abaterusso
Articles (2195) 

3 Stocks With Low Price-Sales Ratios

These high profitable businesses are based on solid financial pillars

April 28, 2020 | About:

Investors may be interested in the following stocks , as they have low price-sales ratios, high profitability and good financial conditions.

RF Industries Ltd

The first company that meets the above-listed criteria is RF Industries Ltd (NASDAQ:RFIL), a San Diego, California-based manufacturer and marketer of electrical interconnect products and systems.

The stock price closed at $5 per share on Monday, April 27 for a price-sales ratio of 0.86 versus the industry median of 0.89.

RF Industries has a GuruFocus profitability rating of 7 out of 10, return on total assets of 8.05% (versus the industry median of 3.17%) and a three-year revenue growth rate of 17.7% (versus the industry median of 5.1%).

The company has received the same rating of 7 out of 10 for its financial strength, which is driven by a high cash-debt ratio of 12.08 (versus the industry median of 0.96), a low debt-to-equity ratio of 0.04 (versus the industry median of 0.32) and a strong Altman Z-Score of 6.5.

RF Industries’ share price declined by nearly 35% in the past year.

The stock has a market cap of $48.79 million and a 52-week range of $3.31 to $8.89.

Wall Street sell-side analysts recommend buying this stock and have established an average target price of $9 per share.

AMN Healthcare Services Inc

The second company that meets the above-listed criteria is AMN Healthcare Services Inc (NYSE:AMN), a Dallas-based provider of workforce solutions and staffing services to U.S. medical care facilities.

The stock price closed at $45.75 per share on April 27 for a price-sales ratio of 0.98 versus the industry median of 1.47.

AMN Healthcare Services has a GuruFocus financial strength rating of 5 out of 10, which is mainly driven by a high interest coverage ratio of 6.22.

The company has received a higher rating of 7 out of 10 for its profitability, on the back of a return on equity of 16.71% (versus the industry median of 6.74%) and a high return on capital of 56.03% (versus the industry median of 12.9%).

AMN Healthcare Services’ share price fell by 11.6% in the past year.

The stock has a market cap of $2.14 billion and a 52-week range of $43.78 to $89.22.

Wall Street sell-side analysts recommend an overweight rating for this stock and have set an average target price of $75.50 per share.

Landstar System Inc

The third company that meets the above-listed criteria is Landstar System Inc (NASDAQ:LSTR), a Jacksonville, Florida-based provider of integrated services of freight and logistics.

The stock price closed at $108.03 per share on April 27 for a price-sales ratio of 1.07 versus the industry median of 0.57.

Landstar System has a GuruFocus profitability rating of 9 out of 10. The company has a high return on equity ratio of 28.83% (versus the industry median of 6.63%), a high return on total assets ratio of 15.21% (versus the industry median of 2.66%) and a return on capital of 56.68% (versus the industry median of 9.13%).

Landstar System has received a score of 8 out of 10 for its financial strength. This score is driven by a high cash-debt ratio of 1.53 (versus the industry median of 0.27), a low debt-to-equity ratio of 0.23 (versus the industry median of 0.74), a low debt-to-Ebitda ratio of 0.44 (versus the industry median of 3.73) and a strong Altman Z-Score of 9.37.

Landstar Systems’ share price declined slightly by 1.4% in the past year.

The stock has a market cap of $4.15 billion and a 52-week range of $85.30 to $120.23

Wall Street sell-side analysts recommend holding this stock and have established an average target price of $101.90 per share.

Disclosure: I have no positions in any securities mentioned in this article.

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About the author:

Alberto Abaterusso
I am a contributor at GuruFocus. I primarily write about gold, silver and precious metals mining industries. My articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. I hold a Master's Degree in Business Administration from Università degli Studi di Bari (Italy), Aldo Moro. I am based in The Netherlands.

You can follow me on Twitter at https://twitter.com/AAbaterusso

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Comments

DanaBoy
DanaBoy - 2 months ago    Report SPAM

Because it doesn't have a past history of generating decent free cash flow year after year, RFIL isn't really worth pursuing as a potential investment opportunity.

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