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Tiziano Frateschi
Tiziano Frateschi
Articles (2651)  | Author's Website |

5 Stocks Growing Their Book Value

Hexcel makes the list

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. 22.

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.

Hexcel

The book value per share of Hexcel Corp. (HXL) has grown 11.20% over the past 10 years. The price-book ratio is 1.97 and the price-tangible book ratio is 2.45.

The company, which provides composites used in aerospace, defense and other industrial markets, has a market cap of $2.85 billion and an enterprise value of $3.86 billion.

According to the discounted cash flow calculator, the stock is undervalued and is trading with a 41.21% margin of safety at $34.10. The share price has been as high as $80.57 and as low as $24.54 in the last 52 weeks. As of Thursday, the stock was trading 57.68% below its 52-week high and 38.96% above its 52-week low. The price-earnings ratio is 14.94.

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With 0.32% of outstanding shares, Michael Price (Trades, Portfolio) is the company's largest guru shareholder, followed by Tom Gayner (Trades, Portfolio) with 0.23% and Chuck Royce (Trades, Portfolio) with 0.14%.

GATX

GATX Corp.'s (GATX) book value per share has grown 8.80% over the past decade. The price-book ratio is 1.30 and the price-tangible book ratio is 1.35.

The company, which provides railcar leasing and maintenance services, has a market cap of $2.43 billion and an enterprise value of $7.39 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 44.70% margin of safety at $69.39. The share price has been as high as $86.01 and as low as $56.69 in the last 52 weeks. As of Thursday, the stock was trading 19.32% below its 52-week high and 36.89% above its 52-week low.aec3a750724a232c530635fed0b1685b.png

With 5.52% of outstanding shares, Mario Gabelli (Trades, Portfolio)'s GAMCO Investors is the company's largest guru shareholder, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.20% and Ray Dalio (Trades, Portfolio)'s Bridgewater Associates with 0.02%.

Allegiant Travel

Allegiant Travel Co.'s (ALGT) book value per share has grown 12.60% over the past decade. The price-book ratio is 2.97 and the price-tangible book ratio is 2.96.

The U.S. travel services provider has a market cap of $2.18 billion and an enterprise value of $3.02 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 434.05% margin of safety at $134.42. The share price has been as high as $183.26 and as low as $60.06 in the last 52 weeks. As of Thursday, the stock was trading 26.65% below its 52-week high and 123.81% above its 52-week low.

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Diamond Hill Capital (Trades, Portfolio) is the company's largest guru shareholder with 2.81% of outstanding shares, followed by Royce with 0.47% and PRIMECAP Management (Trades, Portfolio) with 0.24%.

Industrias Bachoco

The book value per share of Industrias Bachoco SAB de CV (IBA) has grown 11.50% over the past 10 years. The price-book ratio and the price to tangible book ratio are both 0.98.

The company, which provides poultry (chicken and eggs), has a market cap of $1.97 billion and an enterprise value of $1.27 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 39.02% margin of safety at $39.44. The share price has been as high as $55.61 and as low as $28.02 in the last 52 weeks. As of Thursday, the stock was trading 29.08% below its 52-week high and 40.66% above its 52-week low. The price-earnings ratio is 12.45.

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With 1.36 % of outstanding shares, Simons' firm is the company's largest guru shareholder, followed by Royce with 0.21% and Charles Brandes (Trades, Portfolio) with 0.02%.

Walker & Dunlop

Walker & Dunlop Inc.'s (WD) book value per share has grown 22.10% over the past decade. The price-book ratio is 1.64% and the price-tangible book ratio is 29.71%.

The U.S. commercial real estate finance company has a market cap of $1.86 billion and an enterprise value of $3.74 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 63.92% margin of safety at $59.72. The share price has been as high as $79.74 and as low as $24.55 in the last 52 weeks. As of Thursday, the stock was trading 25.11% below its 52-week high and 143.26% above its 52-week low.

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Jeremy Grantham (Trades, Portfolio) is the largest guru shareholder of the company with 0.98% of outstanding shares, followed by Royce with 0.89%.

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.

Visit Tiziano Frateschi's Website


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