5 Undervalued Companies With Profitable Business

Usana Health Sciences on the list

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Oct 16, 2020
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According to the GuruFocus All-in-One Screener, a Premium feature, the following companies have high business predictability ratings and wide margins of safety as of Oct. 16.

Usana Health Sciences

Usana Health Sciences Inc. (USNA) has a business predictability rank of four out of five stars and, according to the discounted cash flow calculator, a 21.71% margin of safety at an average price of $78.27 per share.

The company, which provides science-based nutritional and personal-care products, has a market cap of $1.65 billion and an enterprise value of $1.42 billion. Over the past five years, its revenue and earnings per share have increased 10.20% and 8.60%, respectively.

Over the past 12 months, the stock has gained 11.58% and is currently trading with a price-earnings ratio of 15.50. The share price has been as high as $92.26 and as low as $43.01 in the last year. As of Oct. 16, the stock was trading 15.16% below its 52-week high and 81.98% above its 52-week low.

With 8.41% of outstanding shares, Jim Simons (Trades, Portfolio)' Renaissance Technologies is the company's largest guru shareholder, followed by HOTCHKIS & WILEY with 0.27% and Paul Tudor Jones (Trades, Portfolio) with 0.09%.

Helmerich & Payne

Helmerich & Payne Inc. (HP) has a three-star business predictability rank and, according to the DCF calculator, a 138.35% margin of safety at the average price of $15.02 per share.

The U.S. land drilling rig company has a market cap of $1.61 billion and an enterprise value of $1.60 billion. Over the past five years, its revenue has declined 5.70%.

The stock has lost 60% over the last 12 months and shares are trading with a price-book ratio of 48. The share price has been as high as $47.33 and as low as $12.4 in the last 52 weeks. As of Oct. 16, the stock was trading 68.27% below its 52-week high and 21.13% above its 52-week low.

With 1.06% of outstanding shares, Ken Fisher (Trades, Portfolio) is the company's largest guru shareholder, followed by Simons' firm with 0.81% and Chuck Royce (Trades, Portfolio) with 0.34%.

AMC Networks

AMC Networks Inc. (AMCX) has a 4.5-star business predictability rank and, according to the DCF calculator, a 75.62% margin of safety at an average price of $23.74 per share.

The company, which operates several cable networks, has an $1.24 billion market cap and an enterprise value of $3.52 billion. Over the past five years, its revenue has increased 12.50% and its earnings per share have risen 15.10%.

The share price has fallen 50% over the past 12 months. The stock is trading with a price-earnings ratio of 6.94. The share price has been as high as $49.10 and as low as $19.62 in the last 52 weeks. As of Oct. 16, the stock was trading 51.65% below its 52-week high and 21% above its 52-week low.

With 1.63% of outstanding shares, Mario Gabelli (Trades, Portfolio)'s GAMCO Investors is the company's most notable guru shareholder, followed by Leon Cooperman (Trades, Portfolio)'s Omega Advisors with 1.22% and John Hussman (Trades, Portfolio) with 0.12%.

Micro Focus

Micro Focus International PLC (MFGP) has a 4.5-star business predictability rank and, according to the DCF calculator, a 110.76% margin of safety at an average price of $3.39 per share.

The company, which provides software solutions, has a market cap of $1.11 billion and an enterprise value of $5.64 billion. Over the past five years, its revenue has grown 19%.

Shares have fallen 76% compared to 12 months ago. The stock is currently trading with a price-book ratio of 0.21. The share price has been as high as $16.49 and as low as $3.11 in the last 52 weeks. As of Oct. 16, the stock was trading 79.44% below its 52-week high and 9.0% above its 52-week low.

With 10.37% of outstanding shares, Dodge & Cox is the company's largest guru shareholder, followed by Sarah Ketterer (Trades, Portfolio) with 0.20% and PRIMECAP Management (Trades, Portfolio) with 0.12%.

Douglas Dynamics

Douglas Dynamics Inc. (PLOW) has a a two out of five stars business predictability rank and, according to the DCF calculator, a 131.38% margin of safety at an average price of $35.38 per share.

The company, which manufactures commercial vehicle attachments and equipment, has a market cap of $808.70 million and an enterprise value of $1.06 billion. Over the past five years, its revenue and earnings per share have increased 11.80% and 3.30%, respectively.

Shares have declined 20% compared to 12 months ago. The stock is currently trading with a price-earnings ratio of 4.39. The share price has been as high as $56.89 and as low as $24.12 in the last 52 weeks. As of Oct. 16, the stock was trading 46.68% below its 52-week high and 37.81% above its 52-week low.

Disclosure: I do not own any stocks mentioned.

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