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James Li
James Li
Articles (1486)  | Author's Website |

5 Historical Low Price-Book Companies for 2021

These stocks have good financial strength

According to the Historical Low Price-Book Screen, a Premium feature of GuruFocus, the following five stocks have good financial strength and are trading near historical low price-book as of Wednesday: 51job Inc. (NASDAQ:JOBS), Centene Corp. (NYSE:CNC), Clorox Co. (NYSE:CLX), City Holding Co. (NASDAQ:CHCO) and Cass Information Systems Inc. (NASDAQ:CASS).

The Historical Low Price-Book Screen seeks companies that have consistent revenue and earnings growth over the past 10 years and a current price-book ratio that is at most 30% above the 10-year-low price-book ratio.

According to the GuruFocus Model Portfolio pages, the Historical Low Price-Book model portfolio returned 28.88% in 2019, on par with the Standard & Poor's 500 index benchmark. The model portfolio returned an annualized 15.42% per year during the past five years and an annualized 12.45% per year during the past 10 years, outperforming the respective benchmark returns of 14.9% and 11.28%.

51job

Shares of 51job (NASDAQ:JOBS) traded around $69.27 on Wednesday. The stock's price-book ratio of 2.69 is approximately 12.5% above the 10-year-median ratio of 2.39.

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The Shanghai-based company offers online recruitment advertising and other complementary human resource services. GuruFocus ranks the company's profitability 9 out of 10 on several positive investing signs, which include a four-star business predictability rank and an operating margin that has increased approximately 2% per year over the past five years and is outperforming over 93% of global competitors.

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GuruFocus ranks 51job's financial strength 7 out of 10 driven on a strong Altman Z-score of 7.83 and debt ratios that outperform over 90% of global competitors despite a weak Piotroski F-score of 3.

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Gurus with holdings in 51job include the Wasatch International Growth (Trades, Portfolio) Fund, Ken Fisher (Trades, Portfolio)'s Fisher Investments and Ray Dalio (Trades, Portfolio)'s Bridgewater Associates.

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Centene

Shares of Centene (NYSE:CNC) traded around $62.87. The company's price-book ratio of 1.42 is 18.33% above the 10-year low of 1.2 and outperforming over 78% of global competitors.

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The St. Louis-based company offers government-sponsored health care plans, including Medicare and Medicaid. GuruFocus ranks the company's financial strength 6 out of 10 on the heels of a moderately-high Piotroski F-score of 6 despite interest coverage and debt ratios underperforming over 65% of global competitors.

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Gurus with large holdings in Centene include Andreas Halvorsen (Trades, Portfolio)'s Viking Global Investors and the Vanguard Health Care Fund (Trades, Portfolio).

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Clorox

Shares of Clorox (NYSE:CLX) traded around $195.85. Even though the stock's price-book ratio of 22.09 underperforms over 90% of global competitors, the ratio is just 24.39% above the 10-year low of 17.77%.

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The Oakland, California-based company sells a wide range of consumer products, including cleaning supplies, laundry care and toilet bags. GuruFocus ranks the company's financial strength 5 out of 10. Even though debt ratios underperform more than half of competitors, Clorox has a high Piotroski F-score of 7 and a strong Altman Z-score of 5.43.

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City Holding

Shares of City Holding (NASDAQ:CHCO) traded around $71.86. The stock's price-book ratio of 1.65 is approximately 28% higher than the 10-year low ratio of 1.29.

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According to GuruFocus, the Charleston, West Virginia-based financial holding company has a high Piotroski F-score of 7 and an equity-to-asset ratio that outperforms over 80% of global competitors, suggesting high financial strength.

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Cass Information Systems

Shares of Cass Information Systems (NASDAQ:CASS) traded around $40.48. The stock's price-book ratio of 2.31 is approximately 28.33% higher than the 10-year low of 1.80.

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The St. Louis-based company provides payment and information processing services to large manufacturing, distribution and retail enterprises. According to GuruFocus, the company has a safe Beneish M-score of -2.55 and no long-term debt, suggesting good financial strength.

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Disclosure: No positions.

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About the author:

James Li
I am an editorial researcher at GuruFocus. I have a Master's in Finance from SMU, and I enjoy writing reports on financial trends and investor portfolios. Follow me on Twitter at @JamesLiGuru!

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pjmason14Momentum
wigbertHigh FCF-M2
kosalmmuse6
kosalmmuseBest one1
DBrizanall 2019Feb26
kosalmmuseBest one
DBrizanall 2019Feb25
kosalmmuseNice
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MsDale*52-Week Low
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