As of Jan. 14, the GuruFocus All-in-One Screener, a Premium feature, found that the following guru-owned banks have low price-earnings ratios. While some of them are great value investments, others may need to be researched more carefully, according to the discounted cash flow calculator.
Citigroup
With a market cap of $139 billion, Citigroup Inc. (C, Financial) has a price-earnings ratio of 13.11 and a price-book ratio of 0.79. According to the DCF calculator, the stock has a fair value of $54.79 while trading at $66.85.
The stock has declined 17.79% over the last 12 months and is now 19.55% below the 52-week high and 108.94% above the 52-week low.
The global financial services company has a GuruFocus profitability rating of 4 out of 10. The return on equity of 5.6% and return on assets of 0.57% are underperforming 64% of companies in the banks industry. Its financial strength is rated 3 out of 10. The cash-debt ratio of 1.04 is below the industry median of 1.44.
ValueAct Holdings LP (Trades, Portfolio) is the company's largest guru shareholder with 1.30% of outstanding shares, followed by Hotchkis & Wiley with 0.85% and Diamond Hill Capital (Trades, Portfolio) with 0.49%.
PNC Financial Services
With a $67.41 billion market cap, PNC Financial Services Group Inc. (PNC, Financial) is trading with a price-earnings ratio of 9.52. According to the DCF calculator, the stock has a fair value of $93.94 while trading at $159.10
The share price has risen 3.26% over the past 12 months and is now 2.24% below the 52-week high and 100.35% above the 52-week low.
The company, which provides retail banking, corporate and institutional banking, asset management and residential mortgage banking, has a GuruFocus profitability rating of 5 out of 10. The return on equity of 14.09% and return on assets of 1.7% are outperforming 88% of companies in the industry. Its financial strength is rated 4 out of 10 with the cash-debt ratio of 1.84.
The company's largest guru shareholder is Hotchkis & Wiley with 0.46% of outstanding shares, followed by Warren Buffett (Trades, Portfolio)'s Berkshire Hathaway with 0.45% and the T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.28%.
Banco Santander (Brasil)
With a market cap of $62.68 billion, Banco Santander (Brasil) SA (BSBR, Financial) is trading with a price-earnings ratio of 10.93. According to the DCF calculator, the stock has a fair value of $5.31 while trading at $8.40.
Shares have declined 21.55% over the last 12 months and are now 25.66% below the 52-week high and 127.64% above the 52-week low.
The bank has a GuruFocus profitability rank of 5 out of 10. The company's return on equity of 7.36% and return on assets of 1.85% are outperforming 51% of competitors in the banks industry. Its financial strength is rated 3 out of 10 with a cash-debt ratio of 0.25.
Jim Simons (Trades, Portfolio)' Renaissance Technologies is the company's largest guru shareholder with 0.01% of outstanding shares.
Mitsubishi Financial
Mitsubishi UFJ Financial Group Inc. (MUFG, Financial) has a market cap of $61.78 billion and is trading with a price-earnings ratio of 13.69 and a price-book ratio of 0.42. According to the DCF calculator, the stock has a fair value of $3.71 while trading at $4.81.
Shares have declined 8.54% over the last 12 months and are now trading 9.93% below the 52-week high and 44.76% above the 52-week low.
The Japanese bank has a GuruFocus profitability rating of 4 out of 10. The return on equity of 3.05% and return on assets of 0.14% are underperforming 84% of companies in the industry. Its financial strength is rated 3 out of 10 with the cash-debt ratio of 1.85.
The company's largest guru shareholder is Simons' firm with 0.04% of outstanding shares, followed by Charles Brandes (Trades, Portfolio) with 0.02%.
Itau Unibanco
Itau Unibanco Holding SA (ITUB, Financial) has a market cap of $58.18 billion. Its shares are trading with a price-earnings ratio of 14.92. According to the DCF calculator, the stock has a fair value of $5.63 while trading at $5.96.
Shares have declined 28% over the past 12 months and are currently 30.21% below the 52-week high and 71.26% above the 52-week low.
The Brazilian bank has a GuruFocus profitability rating of 5 out of 10. The return on equity of 12.72% and return on assets of 1.03% are outperforming 71% of companies in the industry. Its financial strength is rated 3 out of 10 with the cash-debt ratio of 0.63.
Ken Fisher (Trades, Portfolio) is the company's largest guru shareholder with 0.26% of outstanding shares, followed by Howard Marks (Trades, Portfolio) with 0.20% and Dodge & Cox with 0.14%.
Disclosure: I do not own any stocks mentioned.
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