6 Utilities Trading With Low Price-Sales Ratios

Fortis makes the list

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Jun 16, 2020
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According to the GuruFocus All-In-One Screener, a Premium feature, the following utility companies were trading with low price-sales ratios as of June 16.

NiSource

Shares of NiSource Inc. (NI, Financial) were trading around $24.08 with a price-sales ratio of 1.87 and a price-earnings ratio of 50.71.

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The natural gas distributor has a $9.3 billion market cap. The stock has risen at an annualized rate of 18.16% over the past decade.

The discounted cash flow calculator gives the stock a fair value of $5.14, suggesting it is overpriced by 368%, while the Peter Lynch fair value is $7.2.

The company's largest guru shareholder is the T Rowe Price Equity Income Fund (Trades, Portfolio) with 2.90% of outstanding shares, followed by Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.48% and Pioneer Investments (Trades, Portfolio) with 0.11%.

Alliant Energy

On Tuesday, Alliant Energy Corp. (LNT, Financial) was trading around $49.60 per share with a price-sales ratio of 3.35 and a price-earnings ratio of 19.91.

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The provider of equipment for the oil and gas industry has a market cap of $12.4 billion. The stock has risen at an annualized rate of 13.76% over the past 10 years.

The discounted cash flow calculator gives the stock a fair value of $37.85, suggesting it is overpriced by 31%, while the Peter Lynch fair value is $37.5.

With 0.50% of outstanding shares, Renaissance Technologies is the company's largest guru shareholder, followed by Pioneer Investments with 0.46% and George Soros (Trades, Portfolio) with 0.06%.

MGE Energy

MGE Energy Inc. (MGEE, Financial) was trading around $66.9 on Tuesday with a price-sales ratio of 4.22 and a price-earnings ratio of 26.19.

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The holding company has a market cap of $2.4 billion. The stock has risen at an annualized rate of 12.24% over the past decade.

The discounted cash flow calculator gives the stock a fair value of $28.28, suggesting it is overpriced by 133%, while the Peter Lynch fair value is $38.4.

With 1.29% of outstanding shares, Renaissance Technologies is the company's largest guru shareholder, followed by Pioneer Investments with 0.01%.

Fortis

Fortis Inc. (FTS, Financial) was trading around $38.84 with a price-sales ratio of 2.71 and a price-earnings ratio of 14.25.

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The owner of utility transmission assets in the U.S. and Canada has a market cap of $18 billion. The stock has climbed at an annualized rate of 7.14% over the past 10 years.

The discounted cash flow calculator gives the stock a fair value of $35.34, suggesting it is overpriced by 9%, while the Peter Lynch fair value is $41.8.

Some notable guru shareholders are Simons’ firm with 1.04% outstanding shares and Steven Cohen (Trades, Portfolio) with 0.04%.

CMS Energy

CMS Energy Corp. (CMS, Financial) was trading around $59.49 with a price-sales ratio of 2.55 and a price-earnings ratio of 24.

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The energy holding company has a market cap of $17.1 billion. The stock has risen at an annualized rate of 16.47% over the past decade.

The discounted cash flow calculator gives the stock a fair value of $5.14, suggesting it is overpriced by 368%, while the Peter Lynch fair value is $7.2.

The company's largest guru shareholder is Renaissance Technologies with 0.61% of outstanding shares, followed by Pioneer Investments with 0.23%.

CenterPoint

CenterPoint Energy Inc. (CNP, Financial) was trading around $18.73 with a price-sales ratio of 0.87.

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The company has a market cap of $9.5 billion. The stock has risen at an annualized rate of 7.42% over the past decade.

The Peter Lynch earnings line gives the stock a fair price of $19.2.

The company's largest guru shareholder is Simons’ Renaissance Technologies with 1.53% of outstanding shares, followed by the T Rowe Price Equity Income Fund with 1.23%.

Disclosure: I do not own any stocks mentioned.

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