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Tiziano Frateschi
Tiziano Frateschi
Articles (2757)  | Author's Website |

5 Profitable Companies With a Margin of Safety

Comcast tops the list

According to the GuruFocus discounted cash flow calculator as of Dec. 18, the following companies have a high margin of safety and have grown their margins over a 10-year period.

Comcast

Comcast Corp.'s (NASDAQ:CMCSA) net margin and operating margin have grown by 10.86% and 20.92% per annum over the past 10 years.

According to the DCF calculator, the stock is undervalued with a 16.82% margin of safety at $51.43 per share. The price-earnings ratio is 23.06. The share price has been as high as $52.49 and as low as $31.71 in the last 52 weeks; it is currently 2.02% below its 52-week high and 62.19% above its 52-week low.

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The company, which operates in the diversified media industry, has a market cap of $235 billion and an enterprise value of $325 billion.

The company's largest guru shareholder is Dodge & Cox with 1.83% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 0.71% and Barrow, Hanley, Mewhinney & Strauss with 0.30%.

Intel

The net margin of Intel Corp. (NASDAQ:INTC) has grown 20.79% per annum over the past decade. The operating margin has grown 28.69% per annum over the past decade.

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According to the DCF calculator, the stock is undervalued with a 37.97% margin of safety at $51.12 per share. The price-earnings ratio is 10.02. The share price has been as high as $69.29 and as low as $43.61 in the last 52 weeks; it is currently 26.22% below its 52-week high and 17.22% above its 52-week low.

The chipmaker has a market cap of $209 billion and an enterprise value of $227 billion.

With 0.69% of outstanding shares, Ken Fisher (Trades, Portfolio) is the company's largest guru shareholder, followed by PRIMECAP Management (Trades, Portfolio) with 0.62%.

Canadian Pacific Railway

Canadian Pacific Railway Ltd. (NYSE:CP) has grown its net margin and operating margin by 34.49% and 33.50% per year over the past decade.

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According to the DCF calculator, the stock is undervalued with a 5.29% margin of safety at $338 per share. The price-earnings ratio is 25.62. The share price has been as high as $341 and as low as $173 in the last 52 weeks; it is currently 0.80% below its 52-week high and 95.55% above its 52-week low.

The company, which operates in the transportation industry, has a market cap of $45.55 billion and an enterprise value of $53.11 billion.

The company's largest guru shareholder is Pioneer Investments (Trades, Portfolio) with 0.21% of outstanding shares.

T. Rowe Price

The net margin of T. Rowe Price Group Inc. (NASDAQ:TROW) has grown 29.65% per annum over the past decade. The operating margin has grown 44.23% annually over the same period.

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According to the DCF calculator, the stock is undervalued with an 18.75% margin of safety at $150 per share. The price-earnings ratio is 16.85. The share price has been as high as $154 and as low as $82.51 in the last 52 weeks; it is currently 2.53% below its 52-week high and 82.32% above its 52-week low.

The asset management company has a market cap of $34.06 billion and an enterprise value of $32.01 billion.

The company's largest guru shareholder is Pioneer Investments with 0.30% of outstanding shares, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.17% and Ron Baron (Trades, Portfolio) with 0.15%.

O'Reilly Automotive

O'Reilly Automotive Inc.'s (NASDAQ:ORLY) net margin and operating margin have grown 11.24% and 18.26% per year over the past 10 years.

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According to the DCF calculator, the stock is undervalued with a 28.62% margin of safety at $454.98 per share. The price-earnings ratio is 20.32. The share price has been as high as $487 and as low as $251 in the last 52 weeks; it is currently 6.76% below its 52-week high and 80.89% above its 52-week low.

The company, which sells aftermarket automotive parts, tools and accessories, has a market cap of $32.96 billion and an enterprise value of $37.92 billion.

With 2.54% of outstanding shares, Chuck Akre (Trades, Portfolio) is the company's largest guru shareholder, followed by Pioneer Investments with 1.24% and Diamond Hill Capital (Trades, Portfolio) with 0.44%.

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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