5 Cheap Real Estate Companies

SL Green Realty makes the list

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Feb 03, 2021
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As of Feb. 3, the GuruFocus All-in-One Screener, a Premium feature, found that the following guru-owned real estates 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.

Kimco

With a market cap of $7.14 billion, Kimco Realty Corp. (KIM, Financial) has a price-earnings ratio of 8.17 and a price-book ratio of 1.30. According to the DCF calculator, the stock has a fair value of $21.62 while trading at $16.30.

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The stock has declined 13.92% over the last 12 months and is now 19.70% below the 52-week high and 121.61% above the 52-week low.

The U.S. real estate investment trust has a GuruFocus profitability rating of 7 out of 10. The return on equity of 16.89% and return on assets of 8.05% are outperforming 93% of companies in the REITs industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.16 is above industry median of 0.08.

Jim Simons (Trades, Portfolio)' Renaissance Technologies is the company's largest guru shareholder with 0.26% of outstanding shares, followed by Chuck Royce (Trades, Portfolio) with 0.08% and Pioneer Investments (Trades, Portfolio) with 0.06%.

Starwood Property

With a $5.34 billion market cap, Starwood Property Trust Inc. (STWD, Financial) is trading with a price-earnings ratio of 17.16. According to the DCF calculator, the stock has a fair value of $14.66 while trading at $18.76.

The REIT's share price has declined 27% over the past 12 months and is now 28.75% below the 52-week high and 147.17% above the 52-week low.

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The company has a GuruFocus profitability rating of 4 out of 10. The return on equity of 8.56% and return on assets of 0.51% are underperforming 65% of companies in the industry. Its financial strength is rated 2 out of 10 with the cash-debt ratio of 0.03.

The company's largest guru shareholder is Pioneer Investments with 0.04% of outstanding shares.

Douglas Emmett

With a market cap of $4.86 billion, Douglas Emmett Inc. (DEI, Financial) is trading with a price-earnings ratio of 12.47. According to the DCF calculator, the stock has a fair value of $18.83 while trading at $27.71.

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Shares have declined 33.34% over the last 12 months and are now 39.22% below the 52-week high and 21.11% above the 52-week low.

The company has a GuruFocus profitability rank of 7 out of 10. The company's return on equity of 12.25% and return on assets of 3.4% are outperforming 67% of competitors in the industry. Its financial strength is rated 3 out of 10 with a cash-debt ratio of 0.04.

Ron Baron (Trades, Portfolio) is the company's largest guru shareholder with 3.29% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 3.13% and Simons' firm with 1.06%.

Cousins Properties

Cousins Properties Inc. (CUZ, Financial) has a market cap of $4.69 billion and is trading with a price-earnings ratio of 10.39 and a price-book ratio of 1.04. According to the DCF calculator, the stock has a fair value of $24.93 while trading at $31.54.

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Shares have declined 23.76% over the last 12 months and are now trading 26.63% below the 52-week high and 49.13% above the 52-week low.

The REIT has a GuruFocus profitability rating of 6 out of 10. The return on equity of 7.73% and return on assets of 4.97% are outperforming 73% of companies in its industry. Its financial strength is rated 4 out of 10 with a cash-debt ratio of 0.02.

The company's largest guru shareholder is Chris Davis (Trades, Portfolio) with 0.22% of outstanding shares, followed by Pioneer Investments with 0.06% and Jeremy Grantham (Trades, Portfolio) with 0.05%.

SL Green

SL Green Realty Corp. (SLG, Financial) has a market cap of $4.62 billion. Its shares are trading with a price-earnings ratio of 4.58. According to the DCF calculator, the stock has a fair value of $109.56 while trading at $67.48.

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Shares have declined 28.87% over the past 12 months and are currently 31.65% below the 52-week high and 86.48% above the 52-week low.

The REIT has a GuruFocus profitability rating of 6 out of 10. The return on equity of 6.58% and return on assets of 3.01% are outperforming 61% of companies in the industry. Its financial strength is rated 3 out of 10 with the cash-debt ratio of 0.05.

The T Rowe Price Equity Income Fund (Trades, Portfolio) is the company's largest guru shareholder with 1.61% of outstanding shares, followed by Davis with 0.10% and Pioneer Investments with 0.07%.

Disclosure: I do not own any stocks mentioned.

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