As of July 14, the GuruFocus All-in-One Screener, a Premium feature, found that the following companies in the health care sector 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.
Genesis
With a market cap of $118 million, Genesis Healthcare Inc. (GEN) has a price-earnings ratio of 1.45. According to the DCF calculator, the stock has a fair value of $5.24 while trading at $0.71.
The stock has lost 42.28% over the last 12 months and is now 61.83% below the 52-week high and 22.41% above the 52-week low.
The U.S. post-acute care provider has a GuruFocus profitability rating of 4 out of 10. The return on assets of 0.32% is underperforming 54% of companies in the healthcare providers and services industry. Its financial strength is rated 2 out of 10. The cash-debt ratio of 0.01 is below the industry median of 0.55.
The company’s largest guru shareholder is Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 2.63% of outstanding shares.
Five Star
With a $115 million market cap, Five Star Senior Living Inc. (FVE) is trading with a price-earnings ratio of 1.84. According to the DCF calculator, the stock has a fair value of $21.30 while trading at $3.66.
The share price has declined 20.69% over the past 12 months and is now 51.20% below the 52-week high and 71.83% above the 52-week low.
The owner of medical care facilities has a GuruFocus profitability rating of 3 out of 10. The return on equity of -3.12% and return on assets of -0.4% are underperforming 69% of companies in the healthcare providers and services industry. Its financial strength is rated 8 out of 10. The cash-debt ratio of 1.92 is above the industry median of 0.55.
Simons’ firm is the company’s largest guru shareholder with 0.69% of outstanding shares.
Orgenesis
With a market cap of $124 million, Orgenesis Inc. (ORGS) is trading with a price-earnings ratio of 1.87 and a price-book ratio of 1.16.
Shares have increased 34.96% over the last 12 months and are now 31.22% below the 52-week high and 140% above the 52-week low.
The biopharmaceutical company has a GuruFocus profitability rank of 1 out of 10. The company's return on equity of 194.89% and return on assets of 63.74% are outperforming 99% of competitors in the biotechnology industry. The cash-debt ratio of 8.96 is above the industry median of 8.32.
Simons’ firm is the company’s largest guru shareholder with 0.17% of outstanding shares.
Palatin Technologies
Palatin Technologies Inc. (PTN) has a market cap of $114 million and is trading with a price-earnings ratio of 2.76. According to the DCF calculator, the stock has a fair value of $1.93 while trading at $0.50.
Shares have declined 46.93% over the last 12 months and are now trading 71.91% below the 52-week high and 38.89% above the 52-week low.
The biotechnology company has a GuruFocus profitability rating of 1 out of 10. The return on equity of 56.5% and return on assets of 53.71% are outperforming 99% of companies in the biotechnology industry. Its financial strength is rated 8 out of 10. The company has no debt.
With 0.04% of outstanding shares, Pioneer Investments (Trades, Portfolio) is the company’s largest guru shareholder.
Lexicon
Lexicon Pharmaceuticals Inc. (LXRX) has a market cap of $203 million. Its shares are trading with a price-earnings ratio of 3.08. According to the DCF calculator, the stock has a fair value of $6.64 while trading at $1.92.
Shares have declined 69.35% over the past 12 months and are currently trading 73.87% below the 52-week high and 68.14% above the 52-week low.
The company has a GuruFocus profitability rating of 3 out of 10. The return on equity of 188.74% and return on assets of 24.74% are outperforming 99% of competitors in the biotechnology industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 1.02 is below the industry median of 8.32.
The company’s largest guru shareholder is Renaissance Technologies with 1.56% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 0.11% and Pioneer Investments (Trades, Portfolio) with 0.04%.
Disclosure: I do not own any stocks mentioned.
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