5 Undervalued Stocks Growing Earnings

Caledonia Mining makes the list

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Nov 03, 2020
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The following companies have grown their earnings per share over a five-year period. According to the GuruFocus discounted cash flow calculator as of Nov. 3, all of them also trade with a margin of safety.

Jewett-Cameron

Jewett-Cameron Trading Co. Ltd.'s (JCTCF, Financial) earnings per share have grown 14% per annum over the past five years.

According to the DCF calculator, the stock is undervalued with a 7.87% margin of safety at $8.90 per share. The price-earnings ratio is 18.23. The share price has been as high as $11.66 and as low as $5 in the last year; it is currently 23.67% below its 52-week high and 78% above its 52-week low.

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The company, which operates in the wholesale distribution of a variety of specialty wood products, has a market cap of $30.98 million and an enterprise value of $28.39 million.

The company's largest guru shareholder is Jim Simons (Trades, Portfolio)' Renaissance Technologies with 5.14% of outstanding shares.

Silvercrest Asset Management

The earnings per share of Silvercrest Asset Management Group Inc. (SAMG, Financial) have grown 11.70% per annum over the past five years.

According to the DCF calculator, the stock is undervalued with a 5.84% margin of safety at $12.09 per share. The price-earnings ratio is 10.08. The share price has been as high as $13.75 and as low as $6.21 in the last year; it is currently 12.07% below its 52-week high and 94.69% above its 52-week low.

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The company, which provides asset management services, has a market cap of $173.76 million and an enterprise value of $220 million.

The company's largest guru shareholder is Chuck Royce (Trades, Portfolio) with 3.79% of outstanding shares, followed by Simons' firm with 1.88%.

Mastech Digital

Mastech Digital Inc.'s (MHH, Financial) earnings per share have grown 19.20% per annum over the past five years.

According to the DCF calculator, the stock is undervalued with a 25.73% margin of safety at $15.93 per share. The price-earnings ratio is $18.51 The share price has been as high as $29.98 and as low as $6.99 in the last year; it is currently 46.86% below its 52-week high and 127.90% above its 52-week low.

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The company, which offers information technology services, has a market cap of $181.27 million and an enterprise value of $195 million.

With a 1.50% stake, Simons' firm is the company's largest guru shareholder.

Caledonia Mining

The earnings per share of Caledonia Mining Corp. PLC (CMCL, Financial) have grown 48% per annum over the past five years.

According to the DCF calculator, the stock is undervalued with an 18.92% margin of safety at $17 per share. The price-earnings ratio is 8.68. The share price has been as high as $29.39 and as low as $6.51 in the last year; it is currently 42.12% below its 52-week high and 161.29% above its 52-week low.

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The mining company has a market cap of $206 million and an enterprise value of $210 million.

The company's largest guru shareholder is Simons' firm with 0.84% of outstanding shares.

Nathan's Famous

Nathan's Famous Inc.'s (NATH, Financial) earnings per share have grown 12.10% per annum over the past five years.

According to the DCF calculator, the stock is undervalued with a 5.42% margin of safety at $51 per share. The price-earnings ratio is 17.65. The share price has been as high as $82.18 and as low as $39.01 in the last year; it is currently 37.94% below its 52-week high and 30.74% above its 52-week low.

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The U.S company, which owns fast-food franchises, has a market cap of $209 million and an enterprise value of $289 million.

With a 5.86% stake, Simons' firm is the company's largest guru shareholder, followed by Mario Gabelli (Trades, Portfolio) with 5.63%.

Disclosure: I do not own any stocks mentioned.

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