5 Cyclical Companies Boosting Book Value

America's Car-Mart tops the list

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Jun 04, 2021
Summary
  • More than 9% book value increase for all these companies
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According to the GuruFocus All-in-One Screener, a Premium feature, the following guru-owned cyclical companies have grown their book value per share over the past decade through June 4.

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.

Superior Group Of Companies

The book value per share of Superior Group Of Companies Inc. (SGC) has risen 10.10% over the last 10 years. The price-book ratio is 1.99 and the price-tangible book ratio is 3.95.

The company, which designs apparel products, has a market cap of $401.92 billion and an enterprise value of $503.49 billion.

According to the discounted cash flow calculator, shares are undervalued and trading with a 80.22% margin of safety at $25.74. The share price has been as high as $29.33 and as low as $9.80 in the last 52 weeks. As of Tuesday, the stock was trading 12.24% below its 52-week high and 162.65% above its 52-week low. The price-earnings ratio is 8.33.

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Jim Simons (Trades, Portfolio) ' Renaissance Technologies is the largest guru shareholder of the company with 40.46% of outstanding shares.

Standard Motor Products

Standard Motor Products Inc.'s (SMP) book value per share has grown 9% over the past decade. The price-book ratio is 1.91 and the price-tangible book ratio is 2.49.

The company, which manufactures and distributes replacement motor parts, has a market cap of $1.03 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 29.86% margin of safety at $46.53. The share price has been as high as $55.29 and as low as $37.65 in the last 52 weeks. As of Tuesday, the stock was 15.84% below its 52-week high and 23.59% above its 52-week low. The price-earnings ratio is 15.21.

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With 5.03% of outstanding shares, Chuck Royce (Trades, Portfolio) is the company's largest guru shareholder, followed by Mario Gabelli (Trades, Portfolio) with 0.94%.

America's Car-Mart

America's Car-Mart Inc.'s (CRMT) book value per share has grown 10.40% over the past decade. The price-book ratio and the price-tangible book ratio are both 2.60.

The automotive retailing company has a market cap of $1.06 billion and an enterprise value of $1.33 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 46.56% margin of safety at $159.78. The share price has been as high as $177.45 and as low as $80.47 in the last 52 weeks. As of Friday, the stock was trading 9.96% below its 52-week high and 98.56% above its 52-week low.

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Royce is the largest guru shareholder of the company with 5.04% of outstanding shares.

Zumiez

The book value per share of Zumiez Inc. (ZUMZ) has grown 9.60% over the last 10 years. The price-book ratio is 2.07 the price-tangible book ratio is 2.40.

The company, which retails apparel, footwear, accessories and hardgoods, has a market cap of $1.15 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 24.50% margin of safety at $44.59 The share price has been as high as $49.23 and as low as $20.87 in the last 52 weeks. As of Friday, the stock was trading 9.43% below its 52-week high and 113.59% above its 52-week low. The price-earnings ratio is 14.81.

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With 0.65% of outstanding shares, Simons’ firm is the company's largest guru shareholder, followed by Royce with 0.48%, Jeremy Grantham (Trades, Portfolio) with 0.39% and HOTCHKIS & WILEY with 0.37%.

Johnson Outdoors

Johnson Outdoors Inc.'s (JOUT) book value per share has grown 9.20% over the past decade. The price-book ratio is 2.91 and the price-tangible book ratio is 3.05.

The company, which manufactures branded seasonal outdoor recreation products, has a market cap of $1.23 billion and an enterprise value of $1.09 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 54.36% margin of safety at $121.88. The share price has been as high as $154.18 and as low as $75.12 in the last 52 weeks. As of Friday, the stock was trading 20.95% below its 52-week high and 62.25% above its 52-week low. The price-earnings ratio is 16.25.

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Royce is the largest guru shareholder of the company with 4.89% of outstanding shares, followed by Simons with 2.85%, HOTCHKIS & WILEY with 0.46%, Grantham with 0.30% and Robert Olstein (Trades, Portfolio) with 0.12%.

Disclosure: I do not own any stocks mentioned.

Disclosures

I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure