5 Cyclical Companies Boosting Book Value

Toyota makes the list

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Oct 02, 2020
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According to the GuruFocus All-in-One Screener, a Premium feature, the following guru-owned stocks have grown their book value per share over the past decade through Oct. 2.

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.

Zumiez

The book value per share of Zumiez Inc. (ZUMZ) has grown 9.60% over the past 10 years. The price-book ratio is 1.48 and the price-tangible book ratio is 1.77.

The U.S. retailer has a market cap of $706.61 million and an enterprise value of $741.45 million.

According to the discounted cash flow calculator, the stock is undervalued and is trading with a 32.92% margin of safety at $27.77. The share price has been as high as $35.68 and as low as $13.13 in the last 52 weeks. As of Friday, the stock was trading 22.17% below its 52-week high and 111.50% above its 52-week low. The price-earnings ratio is 11.57.

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With 1.11% of outstanding shares, Jeremy Grantham (Trades, Portfolio) is the company's largest guru shareholder, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.84%, Steven Cohen (Trades, Portfolio)'s Point72 Asset Management with 0.71% and Lee Ainslie (Trades, Portfolio)'s Maverick Capital with 0.38%.

Toyota Motor

Toyota Motor Corp.'s (TM) book value per share has grown 9.40% over the past decade. The price-book ratio 0.94 and the price-tangible book ratio is 0.99.

The automaker has a market cap of $185.13 billion and an enterprise value of $337.52 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 54.05% margin of safety at $132.43. The share price has been as high as $145.41 and as low as $108.01 in the last 52 weeks. As of Friday, the stock was trading 8.93% below its 52-week high and 22.61% above its 52-week low.

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With 0.28% of outstanding shares, Ken Fisher (Trades, Portfolio) is the company's largest guru shareholder, followed by Simons with 0.08% and NWQ Managers (Trades, Portfolio) with 0.02%.

Norwegian Cruise Line

Norwegian Cruise Line Holdings Ltd.'s (NCLH) book value per share has grown 15.50% over the past decade. The price-book ratio is 1.02 and the price-tangible book ratio is 1.19.

The company, which provides freestyle and luxury cruising, has a market cap of $4.78 billion and an enterprise value of $12.87 billion.

The share price has been as high as $59.78 and as low as $7.03 in the last 52 weeks. As of Friday, the stock was trading 70.99% below its 52-week high and 146.66% above its 52-week low.

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PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder with 1.39% of outstanding shares, followed by John Rogers (Trades, Portfolio) with 0.35% and Pioneer Investments (Trades, Portfolio) with 0.12%.

Rush Enterprises

The book value per share of Rush Enterprises Inc. (RUSHA) has grown 10.40% over the past 10 years. The price-book ratio is 1.59 and the price to tangible book ratio is 2.10.

The publicly traded standalone commercial truck dealer has a market cap of $1.80 billion and an enterprise value of $3.06 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 35.30% margin of safety at $51.02. The share price has been as high as $51.98 and as low as $27.25 in the last 52 weeks. As of Friday, the stock was trading 1.85% below its 52-week high and 87.23% above its 52-week low. The forward price-earnings ratio is 18.42.

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With 2.26% of outstanding shares, HOTCHKIS & WILEY is the company's largest guru shareholder, followed by Simons with 1.45% and Ronald Muhlenkamp (Trades, Portfolio) with 0.53%.

Sonic Automotive

Sonic Automotive Inc.'s (SAH) book value per share has grown 11.30% over the past decade. The price-book ratio is 2.40%and price-tangible book ratio is 3.78.

The U.S public auto dealership group has a market cap of $1.77 billion and an enterprise value of $3.41 billion.

The share price has been as high as $46.50 and as low as $9 in the last 52 weeks. As of Friday, the stock was trading 10.62% below its 52-week high and 361.78% above its 52-week low.

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HOTCHKIS & WILEY is the largest guru shareholder of the company with 3.18% of outstanding shares, followed by Grantham with 1.11% and Joel Greenblatt (Trades, Portfolio)'s Gotham Asset Management with 0.21%.

Disclosure: I do not own any stocks mentioned.

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