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Tiziano Frateschi
Tiziano Frateschi
Articles (2599)  | Author's Website |

5 Insurance Companies Trading With Low Price-Earnings Ratios

MetLife tops the list

As of Sept. 29, the GuruFocus All-in-One Screener, a Premium feature, found that the following insurance companies have low price-earnings ratios and are owned 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.

Progressive

With a market cap of $54.80 billion, Progressive Corp. (PGR) has a price-earnings ratio of 12.56 and a price-book ratio of 3.39. According to the DCF calculator, the stock has a fair value of $132.79 while trading at $93.46.

The stock has gained 20.92% over the last 12 months and is now 4.45% below the 52-week high and 50.31% above the 52-week low.

The U.S. insurer has a GuruFocus profitability rating of 6 out of 10. The return on equity of 7.97% and return on assets of 18.4% are outperforming 87% of companies in the insurance industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.02 is below the industry median of 2.28.6130355a58fd349e1773a0629d00694d.png

Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder with 1.09% of outstanding shares, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.43% and PRIMECAP Management (Trades, Portfolio) with 0.42%.

MetLife

With a $33.63 billion market cap, MetLife Inc. (MET) is trading with a price-earnings ratio of 4.81 and a price-book ratio of 0.44. According to the DCF calculator, the stock has a fair value of $82.39 while trading at $37.1.

The share price has fallen 19.65% over the past 12 months and is now 30.37% below the 52-week high and 62.36% above the 52-week low.

The U.S. life insurer has a GuruFocus profitability rating of 6 out of 10. The return on assets of 10.34% is outperforming 68% of companies in the insurance industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 1.35 is far below the industry median of 2.28.

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With 7.31% of outstanding shares, Dodge & Cox is the company's largest guru shareholder, followed by Diamond Hill Capital (Trades, Portfolio) with 0.86%.

Allstate

With a market cap of $28.88 billion, Allstate Corp. (ALL) is trading with a price-earnings ratio of 6.93. According to the DCF calculator, the stock has a fair value of $380 while trading at $92.39.

Shares have lost 13.25% over the last 12 months and are now 26.63% below the 52-week high and 44.07% above the 52-week low.

The U.S. property-casualty insurer has a GuruFocus profitability rank of 7 out of 10. The company's return on equity of 16.96% and return on assets of 10.6% are outperforming 67% of competitors in the insurance industry. Its financial strength is rated 4 out of 10 with a cash-debt ratio of 0.08 that is far below the industry median of 2.28.

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Andreas Halvorsen (Trades, Portfolio) is the company's largest guru shareholder with 0.57% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.16% and Robert Bruce (Trades, Portfolio) with 0.10%.

The Travelers Companies

The Travelers Companies Inc. (TRV) has a market cap of $27.85 billion and is trading with a price-earnings ratio of 15.67 and a price-book ratio of 1.04. According to the DCF calculator, the stock has a fair value of $83.18 while trading at $109.57.

Shares have fallen 13.25% over the last 12 months and are now trading 26.63% below the 52-week high and 44.07% above the 52-week low.

The company has a GuruFocus profitability rating of 7 out of 10. The return on assets of 1.66% is outperforming 57% of companies in the insurance industry. Its financial strength is rated 5 out of 10 with a cash-debt ratio of 0.09 that is far below the industry median of 2.28.

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With 1.54% of outstanding shares, First Eagle Investment (Trades, Portfolio) is the company's largest guru shareholder, followed by HOTCHKIS & WILEY with 1.06% and Pioneer Investments (Trades, Portfolio) with 0.12%.

Manulife

Manulife Financial Corp. (MFC) has a market cap of $27.20 billion. Its shares are trading with a price-earnings ratio of 9.63. According to the DCF calculator, the stock has a fair value of $15.45 while trading at $14.12.

Shares have decreased 20.12% over the past 12 months and are currently trading 33.49% below the 52-week high and 63.81% above the 52-week low.

The company which provides life insurance and wealth management products, has a GuruFocus profitability rating of 5 out of 10. The return on equity of 7.47% is outperforming 50% of competitors in the Insurance industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 1.95 is below the industry median of 2.28.

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The company's largest guru shareholder is Renaissance Technologies with 0.19% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.10%.

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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