5 Guru Stocks Boosting Book Value

D.R. Horton makes the list

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Jan 19, 2021
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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 Jan. 19.

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.

D.R. Horton

The book value per share of D.R. Horton Inc. (DHI) has risen 14.70% over the last 10 years. The price-book ratio is 2.15 and the price-tangible book ratio is 2.19.

The U.S. homebuilder has a market cap of $25.17 billion.

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According to the discounted cash flow calculator, the stock is undervalued and is trading with a 62.23% margin of safety at $69.02. The share price has been as high as $81.21 and as low as $25.51 in the last 52 weeks. As of Tuesday, the stock was trading 15% below its 52-week high and 170.60 above its 52-week low. The price-earnings ratio is 10.75.

George Soros (Trades, Portfolio) is the largest guru shareholder of the company with 0.84% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.28% and Ken Heebner (Trades, Portfolio) with 0.24%.

Lithia Motors

Lithia Motors Inc.'s (LAD) book value per share has grown 19.40% over the past decade. The price-book ratio is 4.34 and the price-tangible book ratio is 9.84.

The company, which provides new and used vehicles and related services, has a market cap of $8.55 billion and an enterprise value of $12.20 billion.

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According to the DCF calculator, the stock is undervalued and is trading with a 25.04% margin of safety at $322. The share price has been as high as $330.50 and as low as $55.74 in the last 52 weeks. As of Tuesday, the stock was trading 2.50% below its 52-week high and 478.13% above its 52-week low.

With 8.39% of outstanding shares, David Abrams (Trades, Portfolio) is the company's largest guru shareholder, followed by Chuck Royce (Trades, Portfolio) with 0.13% and Steven Cohen (Trades, Portfolio)'s Point72 Asset Management with 0.13%.

AutoNation

AutoNation Inc.'s (AN) book value per share has grown 10.50% over the past decade. The price-book ratio is 1.99 and the price-tangible book ratio is 4.04.

The U.S. automotive dealer has a market cap of $6.67 billion.

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According to the DCF calculator, the stock is undervalued and is trading with a 11.51% margin of safety at $75.89. The share price has been as high as $78.21 and as low as $20.59 in the last 52 weeks. As of Tuesday, the stock was trading 2.97% below its 52-week high and 268% above its 52-week low.

Edward Lampert (Trades, Portfolio) is the largest guru shareholder of the company with 2.56% of outstanding shares, followed by Mario Gabelli (Trades, Portfolio) with 0.64% and Murray Stahl (Trades, Portfolio) with 0.47%.

Penske Automotive

The book value per share of Penske Automotive Group Inc. (PAG) has grown 12.90% over the last 10 years. The price-book ratio is 1.70 and the price-tangible book ratio is 8.54.

The U.S. automotive retailer has a market cap of $5.20 billion and an enterprise value of $10.80 billion.

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According to the DCF calculator, the stock is undervalued and is trading with a 58.52% margin of safety at $64.76. The share price has been as high as $65.37 and as low as $19.99 in the last 52 weeks. As of Tuesday, the stock was trading 0.93% below its 52-week high and 223.96% above its 52-week low. The price-earnings ratio is 11.73.

With 0.63% of outstanding shares, Gabelli is the company's largest guru shareholder, followed by Murray Stahl (Trades, Portfolio) with 0.33% and Heebner with 0.19%.

Foot Locker

Foot Locker Inc.'s (FL) book value per share has grown 6.80% over the past decade. The price-book ratio is 1.88% and the price-tangible book ratio is 2.02%.

The company, which operates shoe retail stores, has a market cap of $4.93 billion and an enterprise value of $6.76 billion.

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According to the DCF calculator, the stock is undervalued and is trading with a 48.54% margin of safety at $47.32 The share price has been as high as $47.68 and as low as $17.46 in the last 52 weeks. As of Tuesday, the stock was trading 0.76% below its 52-week high and 171% above its 52-week low.

John Rogers (Trades, Portfolio) is the largest guru shareholder of the company with 0.85% of outstanding shares, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.78% followed by Pioneer Investments (Trades, Portfolio) with 0.35%.

Disclosure: I do not own any stocks mentioned.

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