As of Dec. 28, the GuruFocus All-in-One Screener, a Premium feature, found that the following energy utilities have low price-earnings ratios and are owned by gurus. While some of them are great value investments, others may need to be researched more carefully, according to the discounted cash flow calculator.
China Petroleum & Chemical
With a market cap of $53.80 billion, China Petroleum & Chemical Corp. (SNP) has a price-earnings ratio of 9.09 and a price-book ratio of 0.50. According to the DCF calculator, the stock has a fair value of $51.69 while trading at $44.44.
The stock has lost 25.52% over the last 12 months and is now 28.58% below the 52-week high and 16.40% above the 52-week low.
The Chinese national oil company has a GuruFocus profitability rating of 6 out of 10. The return on equity of 5.58% and return on assets of 2.23% are outperforming 76% of companies in the oil and gas industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.52 is far above the industry median of 0.40.
Jim Simons (Trades, Portfolio)' Renaissance Technologies is the company's largest guru shareholder with 0.26% of outstanding shares, followed by NWQ Managers (Trades, Portfolio) with 0.01%.
Enterprise Products
With a $43.35 billion market cap, Enterprise Products Partners LP (EPD) is trading with a price-earnings ratio of 9.64 and a price-book ratio of 1.73. According to the DCF calculator, the stock has a fair value of $33.50 while trading at $19.86.
The share price has declined 28.75% over the past 12 months and is now 32.03% below the 52-week high and 93.38% above the 52-week low.
The company, which transports and processes natural gas, natural gas liquids, crude oil, refined products and petrochemicals, has a GuruFocus profitability rating of 7 out of 10. The return on equity of 18.23% and return on assets of 7.3% are outperforming 90% of companies in the oil and gas industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.04 is far below the industry median of 0.40.
The company's largest guru shareholder is First Eagle Investment (Trades, Portfolio) with 0.13% of outstanding shares, followed by Louis Moore Bacon (Trades, Portfolio) with 0.10% and NWQ Managers (Trades, Portfolio) with 0.03%.
CNOOC
With a market cap of $42.21 billion, CNOOC Ltd. (CEO) is trading with a price-earnings ratio of 7.25. According to the DCF calculator, the stock has a fair value of $140 while trading at $94.55.
Shares have declined 42% over the last 12 months and are now 47.80% below the 52-week high and 16.57% above the 52-week low.
The Chinese offshore oil and gas exploration and production company has a GuruFocus profitability rank of 7 out of 10. The company's return on equity of 9.3% and return on assets of 5.51% are outperforming 82% of competitors in the oil and gas industry. Its financial strength is rated 6 out of 10 with a cash-debt ratio of 1.07 that is far above the industry median of 0.4.
Renaissance Technologies is the company's largest guru shareholder with 0.25% of outstanding shares, followed by Howard Marks (Trades, Portfolio) with 0.07%.
TC Energy
TC Energy Corp. (TRP) has a market cap of $37.85 billion and is trading with a price-earnings ratio of 11.22 and a price-book ratio of 1.76. According to the DCF calculator, the stock has a fair value of $37.64 while trading at $41.34.
Shares have declined 22.45% over the last 12 months and are now trading 28.63% below the 52-week high and 27.71% above the 52-week low.
The energy infrastructure company has a GuruFocus profitability rating of 6 out of 10. The return on equity of 14.13% and return on assets of 4.51% are outperforming 84% of companies in the oil and gas industry. Its financial strength is rated 3 out of 10. The cash-debt ratio of 0.02 is below the industry median of 0.4.
The company's largest guru shareholder is T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.42% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.04% and Dodge & Cox with 0.03%.
Ecopetrol
Ecopetrol SA (EC) has a market cap of $26.68 billion. Its shares are trading with a price-earnings ratio of 13.06. According to the DCF calculator, the stock has a fair value of $10.67 while trading at $12.98.
Shares have declined 35.96% over the past 12 months and are currently trading 38.07% below the 52-week high and 106.69% above the 52-week low.
The vertically integrated oil company has a GuruFocus profitability rating of 7 out of 10. The return on equity of 11.87% and return on assets of 4.58% are outperforming 86% of companies in the oil and gas industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.21 is below the industry median of 0.4.
Simons' firm is the company's largest guru shareholder with 0.37% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 0.20% and Ken Fisher (Trades, Portfolio) with 0.04%.
Disclosure: I do not own any stocks mentioned.
Read more here:
- 5 Industrial Stocks With Low Price-Sales Ratios
- 5 Utilities Popular Among Gurus
- 5 Health Care Stocks Outperforming the Benchmark
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