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Tiziano Frateschi
Tiziano Frateschi
Articles (2513)  | Author's Website |

5 Retailers Trading With Low Price-Earnings Ratios

EBay tops the list

As of June 29, the GuruFocus All-in-One Screener, a Premium feature, found that the following retailers have low price-earnings ratios and have been bought by gurus. While some of them are great value investments, others may need to be researched more carefully, according to the discounted cash flow calculator.

EBay

With a market cap of $34.35 billion, eBay Inc. (NASDAQ:EBAY) has a price-earnings ratio of 8.11. According to the DCF calculator, the stock has a fair value of $22.88 while trading at $50.8.

The stock has gained 24.69% over the last 12 months and is now 705.78% below the 52-week high and 87.86% above the 52-week low.

The company has a GuruFocus profitability rating of 7 out of 10. The return on equity of 133.23% and return on assets of 23.56% are outperforming 99% of companies in the Retail - Cyclical industry . Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.48 is above the industry median of 0.45.

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The company’s largest guru shareholder is Seth Klarman (Trades, Portfolio) with 4.58% of outstanding shares, followed by Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 1.78% and Paul Singer (Trades, Portfolio) with 1.24%.

Sally Beauty

With a $1.31 billion market cap, Sally Beauty Holdings Inc. (NYSE:SBH) is trading with a price-earnings ratio of 6.68. According to the DCF calculator, the stock has a fair value of $29.05 while trading at $11.63.

The share price has declined 8.71% over the past 12 months and is now 47.09% below the 52-week high and 1985.19% above the 52-week low.

The beauty products retailer has a GuruFocus profitability rating of 9 out of 10. The return on assets of 8.72% is outperforming 86% of companies in the Retail - Cyclical industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.15 is below the industry median of 0.45.

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Mario Gabelli (Trades, Portfolio)’s GAMCO Investors is the company’s largest guru shareholder with 0.55% of outstanding shares, followed by Simons’ firm with 0.48% and Lee Ainslie (Trades, Portfolio) with 0.42%.

Office Depot

With a market cap of $1.22 billion, Office Depot Inc. (NASDAQ:ODP) is trading with a price-earnings ratio of 9.24 and a price-book ratio of 0.59. According to the DCF calculator, the stock has a fair value of $2.68 while trading at about $2.31.

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Shares have climbed 24.19% over the last 12 months and are now 22.74% below the 52-week high and 87.80% above the 52-week low.

The company, which sells office products and supplies, has a GuruFocus profitability rank of 6 out of 10. The company's return on equity of 6.4% and return on assets of 1.89% are outperforming 58% of competitors in the Retail - Cyclical industry. The cash-debt ratio of 0.46 is fairly above the industry median of 0.45.

The company’s largest guru shareholder is Hotchkis & WIley with 7.97% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 0.29% and Joel Greenblatt (Trades, Portfolio) with 0.14%.

The Michaels Companies

The Michaels Companies Inc. (NASDAQ:MIK) has a market cap of $975.38 million and is trading with a price-earnings ratio of 5.72. According to the DCF calculator, the stock has a fair value of $12.41 while trading at about $6.63.

Shares have declined 25.08% over the last 12 months and are now trading 49.31% below the 52-week high and 563% above the 52-week low.

The arts and crafts specialty retailer has a GuruFocus profitability rating of 8 out of 10. The return on assets of 4.42% is outperforming 68% of companies in the Retail - Cyclical industry. Its financial strength is rated 3 out of 10. The cash-debt ratio of 0.19 is close to the industry median of 0.45.

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With 1.75% of outstanding shares, Larry Robbins (Trades, Portfolio) is the company’s largest guru shareholder, followed by Simons’ firm with 1.21% and Chuck Royce (Trades, Portfolio) with 0.08%.

Buckle

Buckle Inc. (NYSE:BKE) has a market cap of $741.61million. Its shares are trading with a price-earnings ratio of 9.43. According to the DCF calculator, the stock has a fair value of $17.02 while trading at $15.01.

Shares have declined 10.33% over the past 12 months and are currently trading 47.37% below the 52-week high and 27.64% above the 52-week low.

The company, which sells casual apparel, footwear and accessories, has a GuruFocus profitability rating of 7 out of 10. The return on equity of 19.53% and return on assets of 8.98% are outperforming 87% of competitors in the Retail - Cyclical industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.57 is above the industry median of 0.45.

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The company’s largest guru shareholder is Simons’ firm with 3.10% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.26% and Royce with 0.26%.

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.

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