5 Utilities Trading With Low Price-Earnings Ratios

Genie Energy makes the list

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Tiziano Frateschi
Apr 08, 2021
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As of April 8, the GuruFocus All-in-One Screener, a Premium feature, found that the following guru-owned utilities 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.

Genie Energy

With a market cap of $169.50 million, Genie Energy Ltd. (GNE) has a price-earnings ratio of 14.62 and a price-book ratio of 2.16. According to the DCF calculator, the stock has a fair value of $6.49 while trading at $6.43.

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The stock has declined 5.89.55% over the past 12 months and is now 33.02% below its 52-week high and 1.42% above its 52-week low.

The retail energy provider has a GuruFocus profitability rating of 8 out of 10. The return on equity of 11.92% and return on assets of 8.3% are outperforming 70% of companies in the industry. Its financial strength is rated 9 out of 10. The cash-debt ratio of 28.91 is far above the industry median of 0.27.

Jim Simons (Trades, Portfolio)' Renaissance Technologies is the company's largest guru shareholder with 2.96% of outstanding shares, followed by Kahn Brothers (Trades, Portfolio) with 1.35% and Jeremy Grantham (Trades, Portfolio) with 0.23%.

Atlantic Power

With a $262.77 million market cap, Atlantic Power Corp. (AT) is trading with a price-earnings ratio of 4.46. According to the DCF calculator, the stock has a fair value of $9.15 while trading at $2.93.

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The share price has risen 46.27% over the past 12 months and is now 4.41% below the 52-week high and 63.41% above the 52-week low.

The independent power producer has a GuruFocus profitability rating of 3 out of 10. The return on assets of 8.37% is outperforming 92% of companies in the utilities - independent power producers industry. Its financial strength is rated 2 out of 10 with a cash-debt ratio of 0.07.

Simons' firm is the company's largest guru shareholder with 0.87% of outstanding shares.

South Jersey Industries

With a market cap of $2.39 billion, South Jersey Industries Inc. (SJI) is trading with a price-earnings ratio of 14.26. According to the DCF calculator, the stock has a fair value of $24.50 while trading at $23.67.

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Shares have risen 1.16% over the past 12 months and are now 21.67% below the 52-week high and 29.91% above the 52-week low.

The holding company has a GuruFocus profitability rank of 6 out of 10. While the return on equity of 9.97% is outperforming the sector, the return on assets of 2.46% is underperforming 55% of companies in the industry. Its financial strength is rated 3 out of 10 with a cash-debt ratio of 0.01.

Diamond Hill Capital (Trades, Portfolio) is the company's largest guru shareholder with 2.86% of outstanding shares, followed by HOTCHKIS & WILEY with 0.31% and Steven Scruggs (Trades, Portfolio) with 0.51%.

Vistra

The Vistra Corp. (VST) has a market cap of $38.61 billion and is trading with a price-earnings ratio of 13.86. According to the DCF calculator, the stock has a fair value of $19.04 while trading at $17.67.

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Shares have increased 15.07% over the past 12 months and are now trading 26.98% below the 52-week high and 12.33% above the 52-week low.

The U.S. power producers and retail energy provider has a GuruFocus profitability rating of 5 out of 10. The company's return on assets of 2.44% is outperforming 60% of competitors in the industry. Its financial strength is rated 4 out of 10 with a cash-debt ratio of 0.04.

The company's largest guru shareholder is

Howard Marks (Trades, Portfolio) with 6.19% of outstanding shares, followed by Simons' firm with 1.49%, HOTCHKIS & WILEY with 0.15% and NWQ Managers (Trades, Portfolio) with 0.10%.

Algonquin Power & Utilities

Algonquin Power & Utilities Corp. (AQN) has a market cap of $9.83 billion. Its shares are trading with a price-earnings ratio of 11.53. According to the DCF calculator, the stock has a fair value of $57.71 while trading at $16.34.

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Shares have risen 24.51% over the past 12 months and are currently 8.37% below the 52-week high and 31.45% above the 52-week low.

The North American generation, transmission and distribution utility has a GuruFocus profitability rating of 6 out of 10. The return on equity of 17.56% and return on assets of 6.59% are outperforming 87% of companies in the industry. Its financial strength is rated 3 out of 10 with the cash-debt ratio of 0.02.

Simons' firm is the company's largest guru shareholder with 0.48% of outstanding shares, followed by

Pioneer Investments (Trades, Portfolio) with 0.03%.

Disclosure: I do not own any stocks mentioned.

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