1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Tiziano Frateschi
Tiziano Frateschi
Articles (2476)  | Author's Website |

5 Cyclical Companies Boosting Book Value

Asbury Automotive tops the list

June 01, 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 June 1.

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.

Asbury Automotive

The book value per share of Asbury Automotive Group Inc. (NYSE:ABG) has grown 12.7% over the past 10 years. The price-book ratio is 2.14 and the price-tangible book ratio is 4.10.

809e2afc103acbbd8b561b206a308a9b.png

The automobile dealership owner has a market cap of $1.41 billion and an enterprise value of $2.99 billion.

According to the discounted cash flow calculator, the stock is undervalued and is trading with a 69.64% margin of safety at $72.95. The share price has been as high as $123.45 and as low as $39.36 in the last 52 weeks. As of Monday, the stock was trading 40.91% below its 52-week high and 85.34% above its 52-week low. The price-earnings ratio is 8.61.

With 10.98% of outstanding shares, David Abrams (Trades, Portfolio) is the company's largest guru shareholder, followed by Chuck Royce (Trades, Portfolio) with 0.27% and Hotchkis & Wiley with 0.17%.

Flanigan’s Enterprises

Flanigan’s Enterprises Inc.'s (BDL) book value per share has grown 10.60% over the past decade. The price-book ratio is 0.81 and the price-tangible book ratio is 0.83.

c3d15949cfbb3e8a1aad66e66721e171.png

The operator of small cocktail lounges has a market cap of $31.06 million and an enterprise value of $63.66 million.

According to the DCF calculator, the stock is undervalued and is trading with a 45.30% margin of safety at $16.71. The share price has been as high as $25.09 and as low as $8.5 in the last 52 weeks. As of Monday, the stock was trading 33.4% below its 52-week high and 96.59% above its 52-week low. The price-earnings ratio is 9.12.

With 3.22% of outstanding shares, Jim Simons (Trades, Portfolio)’ Renaissance Technologies is the company's largest guru shareholder.

BorgWarner

BorgWarner Inc.'s (NYSE:BWA) book value per share has grown 8.5% over the past decade. The price-book ratio is 1.46 and the price-tangible book ratio is 2.73.

7797fa54161bdee2c7ba4da0ecb93eca.png

The retailer of auto parts has a market cap of $6.93 billion and an enterprise value of $8.12 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 66.09% margin of safety at $33.4. The share price has been as high as $46.6 and as low as $17 in the last 52 weeks. As of Monday, the stock was trading 28.33% below its 52-week high and 96.47% above its 52-week low. The price-earnings ratio is 9.67.

Diamond Hill Capital (Trades, Portfolio) is the company's largest guru shareholder with 5.85% of outstanding shares, followed by John Rogers (Trades, Portfolio) with 1.04% and Pioneer Investments (Trades, Portfolio) with 1%.

Cracker Barrel

The book value per share of Cracker Barrel Old Country Store Inc. (NASDAQ:CBRL) has grown 13.7% over the past 10 years. The price-book ratio is 4.16 and the price to tangible book ratio is 4.21.

0292c0e098f6d3faf1bc6927afee3572.png

The operator of full-service restaurants has a market cap of $2.62 billion and an enterprise value of $3.51 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 35.83% margin of safety at $109.34. The share price has been as high as $180.93 and as low as $53.61 in the last 52 weeks. As of Monday, the stock was trading 39.57% below its 52-week high and 103.95% above its 52-week low. The price-earnings ratio is 11.98.

With 1.23% of outstanding shares, Simons' firm is the company's largest guru shareholder, followed by Pioneer Investments with 0.44% and Robert Olstein (Trades, Portfolio) with 0.25%.

Conn’s

Conn’s Inc.'s (NASDAQ:CONN) book value per share has grown 5.8% over the past decade. The price-book ratio is 0.33 and price-tangible book ratio is 0.34.

3ecd8ba570b594bb1cae751901020845.png

The retailer of durable consumer goods has a market cap of $214.07 million and an enterprise value of $1.6 billion.

According to the DCF calculator, the stock is undervalued with a 63.9% margin of safety at $7.34. The share price has been as high as $27.57 and as low as $2.83 in the last 52 weeks. As of Monday, the stock was trading 73.38% below its 52-week high and 159.36% above its 52-week low. The price-earnings ratio is 3.9.

Royce is the biggest guru shareholder of the company with 2.18% of outstanding shares, followed by Philippe Laffont (Trades, Portfolio) with 0.14%.

Disclosure: I do not own any stocks mentioned.

Read more here:

Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.

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


Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:



Performances of the stocks mentioned by Tiziano Frateschi


User Generated Screeners


pjmason14Momentum
pascal.van.garsseHigh FCF-M2
kosalmmuse6
kosalmmuseBest one1
DBrizanall 2019Feb26
kosalmmuseBest one
DBrizanall 2019Feb25
kosalmmuseNice
kosalmmusehan
MsDale*52-Week Low
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)