5 Financial Companies Boosting Book Value

Horizon Bancorp makes the list

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Tiziano Frateschi
Apr 12, 2021
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According to the GuruFocus All-in-One Screener, a Premium feature, the following guru-owned financial companies have grown their book value per share over the past decade through April 12.

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.

Horizon Bancorp

The book value per share of Horizon Bancorp (HBNC) has risen 10.50% over the last 10 years. The price-book ratio is 1.19 and the price-tangible book ratio is 1.58.

The banking services provider has a market cap of $820.41 million.

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According to the discounted cash flow calculator, shares are undervalued and trading with a 37.71% margin of safety at $18.68. The share price has been as high as $20.17 and as low as $7.93 in the last 52 weeks. As of Monday, the stock was trading 7.39% below its 52-week high and 135.56% above its 52-week low. The price-earnings ratio is 12.06.

Jim Simons (Trades, Portfolio)' Renaissance Technologies is the largest guru shareholder of the company with 1.51% of outstanding shares, followed by HOTCHKIS & WILEY with 0.52% and Mario Gabelli (Trades, Portfolio)'s GAMCO Investors with 0.02%.

Washington Trust

Washington Trust Bancorp Inc.'s (WASH) book value per share has grown 6.30% over the past decade. The price-book ratio is 1.69 and the price-tangible book ratio is 1.94.

The company, which provides banking and financial services, has a market cap of $901.93 million.

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According to the DCF calculator, the stock is undervalued and is trading with a 37.44% margin of safety at $51.19. The share price has been as high as $55 and as low as $26.92 in the last 52 weeks. As of Monday, the stock was trading 5.23% below its 52-week high and 93.87% above its 52-week low. The price-earnings ratio is 12.98.

With 1.29% of outstanding shares, Simons' firm is the company's largest guru shareholder, followed by

Third Avenue Management (Trades, Portfolio) with 1.06% and Paul Tudor Jones (Trades, Portfolio) with 0.04%.

Meridian Bancorp

The Meridian Bancorp Inc.'s (EBSB) book value per share has grown 16.50% over the past decade. The price-book ratio is 1.25 and the price-tangible book ratio is 1.29.

The bank has a market cap of $967.11 million and an enterprise value of $663.12 million.

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According to the DCF calculator, the stock is undervalued and is trading with a 65.78% margin of safety at $18.45. The share price has been as high as $19.55 and as low as $9.53 in the last 52 weeks. As of Monday, the stock was trading 5.63% below its 52-week high and 93.60% above its 52-week low.

Simons' firm is the largest guru shareholder of the company with 4.28% of outstanding shares, followed by

Chuck Royce (Trades, Portfolio) with 0.87% and Michael Price (Trades, Portfolio) with 0.19%.

ConnectOne

The book value per share of ConnectOne Bancorp Inc. (CNOB) has grown 13.20% over the last 10 years. The price-book ratio is 1.14 and the price-tangible book ratio is 1.47.

The holding company has a market cap of $1.02 billion.

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According to the DCF calculator, the stock is undervalued and is trading with a 42.88% margin of safety at $25.67. The share price has been as high as $28.24 and as low as $10.81 in the last 52 weeks. As of Monday, the stock was trading 9.10% below its 52-week high and 137.47% above its 52-week low. The price-earnings ratio is 14.45.

With 1.73% of outstanding shares, Simons' firm is the company's largest guru shareholder, followed by HOTCHKIS & WILEY with 0.67% and Barrow, Hanley, Mewhinney & Strauss with 0.01%.

Kearny Financial

Kearny Financial Corp.'s (KRNY) book value per share has grown 13% over the past decade. The price-book ratio is 0.97 and the price-tangible book ratio is 1.19.

The company, which operates in the business of attracting deposits from the general public and using these deposits for its investment portfolios, has a market cap of $1.03 billion and an enterprise value of $1.77 billion.

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According to the DCF calculator, the stock is undervalued and is trading with a 52.32% margin of safety at $12.25. The share price has been as high as $13.34 and as low as $6.91 in the last 52 weeks. As of Monday, the stock was trading 8.17% below its 52-week high and 77.28% above its 52-week low. The price-earnings ratio is 20.08.

Simons' firm is the largest guru shareholder of the company with 6.55% of outstanding shares, followed by

Michael Price (Trades, Portfolio) with 0.22% and Jones with 0.05%.

Disclosure: I do not own any stocks mentioned.

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