4 Low Price-Book Ratio Stocks

These companies could be value opportunities

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Sep 26, 2022
Summary
  • Nokia Oyj, Vodafone Group PLC, Baker Hughes Company and Shell PLC have market caps exceeding $10 billion and price-book ratios below 1.5.
  • Wall Street likes these stocks.
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Screening for stocks with market caps over $10 billion and price-book ratios near or below 1.5 could provide a good starting point for value investors as they seek to find opportunities among the myriad of U.S.-listed stocks. Thus, value investors may want to consider the following stocks, as they meet the above criteria and are recommended by Wall Street.

Nokia Oyj

The first company under consideration is Nokia Oyj (

NOK, Financial), an Espoo, Finland-based telecommunications equipment, information technology and consumer electronics company operating globally.

Most of the company's revenue, which was $24.131 billion for the last 12 months ended June 30, 2022 (down 8.5% year-over-year), comes from communications service providers.

The stock price fluctuated between $4.22 and $6.39 over the past 52 weeks and traded at $4.29 during regular market hours on Sept. 26. The market cap was approximately $24 billion, and the price-book ratio was 1.30. The book value per share of Nokia Oyj for the quarter that ended June 2022 was $3.55.

Shares are down 32.11% so far this year.

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On Aug. 9, Nokia Oyj paid a quarterly dividend of 2 cents per common share, resulting in a forward dividend yield of 0.98% at the time of this writing.

GuruFocus assigned a score of 7 out of 10 to the company's financial strength and 5 out of 10 to its profitability.

On Wall Street, the stock has a median recommendation rating of buy and an average target price of $6.49 per share.

Artisan Partners Limited Partnership is the company's largest top fund holder with 1.38% of outstanding shares. Artisan International Value Fund is the second-biggest fund holder with 1.04%, while Neuberger Berman Group LLC follows in third place with 0.59%.

Vodafone Group PLC

The second company to consider is Vodafone Group PLC (

VOD, Financial), a U.K.-based telecommunications services company that operates mobile and fixed networks and stores in Europe and overseas in a total of more than 20 countries.

Germany is home to Vodafone Group PLC's largest market, and here the company is the second mobile operator after Deutsche Telekom (

XTER:DTE, Financial) and operates a cable network, having acquired Kabel Deutschland in 2013 and Liberty Global Deutschland in 2019. In the U.K. and Italy, the company operates as a mobile operator, while in Spain it offers converged services after acquiring cable operator Ono in 2014.

About 33.34% of total sales comes from other Central European countries, along with some in African countries. Trailing 12-month total sales were $50.43 billion in the March 2022 quarter, down 4.11% year-over-year.

The stock price has fluctuated between $11.53 and $19.05 over the past 52 weeks and traded around $11.66 during regular market hours on Sept. 26. The market cap was approximately $32.31 billion, and the price-book ratio was 0.65. The book value per share of Vodafone Group PLC for the quarter that ended March 2022 was $21.23.

Shares are down 24.5% so far this year.

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On Aug. 5, Vodafone Group PLC paid a semi-annual dividend of 45.7 cents per common share, resulting in a forward dividend yield of 7.86% at the time of this writing.

GuruFocus assigned a score of 4 out of 10 to the company's financial strength and 6 out of 10 to its profitability.

On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $17.49 per share.

Jim Simons (Trades, Portfolio) is the company's largest top shareholder with 0.86% of outstanding shares. Hotchkis & Wiley is the second-biggest fund holder with 0.69%, while Price T Rowe Associates Inc. follows in third place with 0.64% of the company's outstanding shares.

Baker Hughes Company

The third company to consider is Baker Hughes Company (BKR,), a Houston, Texas-based provider of technology and services to the oil and gas industry and industrial value chain worldwide. The company is more strongly present in specific markets of artificial lift, specialty chemicals and completions markets. The company's activities also focus on industrial power generation, process solutions and industrial asset management. The company has significant exposure in particular to the liquefied natural gas market, as well as broader industrial end markets.

The stock price fluctuated between $20.78 and $39.78 over the past 52 weeks and traded at around $20.93 during regular market hours on Sept. 26. The market cap was approximately $21.17 billion and the price-book ratio was 1.42. The book value per share of Baker Hughes Company for the quarter ended June 2022 was $14.71.

Shares are down 16.69% so far this year.

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On Aug. 19, Baker Hughes Company paid a quarterly dividend of 18 cents per common share, resulting in a forward dividend yield of 3.44% at the time of this writing.

GuruFocus assigned a score of 6 out of 10 to the company's financial strength and 4 out of 10 to its profitability.

On Wall Street, the stock has a median recommendation rating of buy and an average target price of $35.11 per share.

Capital World Investors is the company's largest top fund holder with 11.87% of outstanding shares. Vanguard Group Inc. is the second-biggest fund holder with 11.16%, while Capital Research Global Investors follows in third place with 10.82% of the company's outstanding shares.

Shell PLC

The fourth company to consider is Shell PLC (

SHEL, Financial), a major Anglo-Dutch petrochemical company headquartered in London, U.K.. From its total reserves of 9.2 billion barrels of oil equivalent at the end of 2021, the company produced 1.7 million barrels of liquids and 8.7 billion cubic feet of natural gas per day.

The company mines and explores for mineral deposits and operates refinery facilities worldwide capable of processing 1.8 million barrels of minerals per day. The company also sells chemicals at a rate of 15 million tons per year. Most often, the largest chemical plants are integrated into local refineries and are located in Central Europe, China, Singapore and North America.

The stock fluctuated between $41.23 and $61.675 over the past 52 weeks and traded at around $47.26 during regular market hours on Sept. 26. The market cap was approximately $176.21 billion and the price-book ratio was 1.03. The book value per share of Shell PLC for the quarter that ended June 2022 was $51.80.

Shares are up 5.5% so far this year.

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On Sept. 20, Shell PLC paid a quarterly dividend of 50 cents per common share, resulting in a forward dividend yield of 4.25% at the time of this writing.

GuruFocus assigned a score of 6 out of 10 to the company's financial strength and 7 out of 10 to its profitability.

On Wall Street, the stock has a median recommendation rating of buy and an average target price of $70.68 per share.

FMR LLC,

Ken Fisher (Trades, Portfolio) and Wellington Management Group LLP are among the largest shareholders of the company, holding 0.58%, 0.55% and 0.34%, respectively, of shares outstanding.

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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
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