Growing EPS With Wide Margins of Safety

Here are companies that are bargains with strong and growing EPS

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May 26, 2016
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Companies with growing EPS are often a good investment as they can return a good profit to investors. Here is a selection of the most undervalued companies, according to the DCF calculator, that have a five-year growing EPS.

Earnings per share of AmTrust Financial Services Inc.(AFSI) grew by 27% over the last five years; Ă‚ according to the DCF calculator, the stock at the price of $26.57 is undervalued and is trading with a margin of safety of 62%.

AmTrust Financial Services through its subsidiaries provides specialty property and casualty insurance, specialty risk and extended warranty coverage.

During the first quarter net earned premium grew 13% from the same quarter of a year before, and operating diluted EPS was 77 cents compared to 73 cents in the first quarter 2015.

The stock is trading with a PE ratio of 10.88, has been as high as $35.94 and as low as $23.68 in the last 52 weeks and is currently -26.14% from its 52-week high and +12.08% from its 52-week low.

RS Investment Management (Trades, Portfolio) is the largest shareholder of the company among the gurus with 0.65% of outstanding shares followed by Jim Simons (Trades, Portfolio) with 0.19%, Murray Stahl (Trades, Portfolio) with 0.1%, Paul Tudor Jones (Trades, Portfolio) with 0.02% and Lee Ainslie (Trades, Portfolio) with 0.01%.

Earnings per share of BBVA Banco Frances SAĂ‚ (BFR) grew by 32% over the last five years and according to the DCF calculator, the stock at the price of $18.67 is undervalued and is trading with a margin of safety of 66%.

BBVA Banco Frances SA provides financial products and services to corporations, medium and small companies and individuals.

First quarter net interest income increased 13.3% and gross income grew 2.7% from the same quarter of a year before.

The stock is trading with a PE ratio of 11.72, has been as high as $25.35 and as low as $12.51 in the last 52 weeks and is currently 26.43% below its 52-week high and 49.08% above its 52-week low.

The largest shareholders among the gurus are Caxton Associates (Trades, Portfolio) with 0.07% of outstanding shares followed by Ken Fisher (Trades, Portfolio) with 0.01%.

Earnings per share of Silicom Ltd.(SILC) grew by 23% over the last five years and according to the DCF calculator, the stock at the price of $59.78 is undervalued and is trading with a margin of safety of 55%.

Silicom is engaged in the design, manufacture, marketing and support of high performance networking and data infrastructure solutions for servers, server-based systems and communications devices.

During the last quarter on a GAAP basis, net income for the quarter was 26 cents per share (basic and diluted) compared to 41 cents per share (basic and diluted) for the first quarter of 2015. Revenues for the first quarter was $21.4 million, compared with $18.8 million in the same quarter of 2015.

The stock is trading with a PE ratio of 12.72, has been as high as $41.43 and as low as $24.86 in the last 52 weeks and is currently 35.49% below its 52-week high and 7.50% above its 52-week low.

Earnings per share of Nicholas Financial Inc.(NICK) grew by 5% over the last five years and according to the DCF calculator, the stock at the price of $10.72 is undervalued and is trading with a margin of safety of 56%.

Nicholas Financial through its subsidiaries is engaged in acquiring and servicing contracts for purchases of new and used automobiles and light trucks and makes direct loans and sells consumer finance-related products.

The stock is trading with a PE ratio of 6.75, has been as high as $14.08 and as low as $9.92 in the last 52 weeks and is currently 23.84% below its 52-week high and 8.09% above its 52-week low.

The largest shareholder among the gurus is Simons with 6.47% of outstanding shares.

Earnings per share of ICICI Bank Ltd.(IBN) grew by 21% over the last five years and according to the DCF calculator, the stock at the price of $7.13 is undervalued and is trading with a margin of safety of 53%.

ICICI Bank is a banking company engaged in providing banking and financial services including retail banking, corporate banking and treasury operations.

First quarter advances increased by 15.2% year on year and total income grew 10.4%. The company reported an 11.5% increase for operating profit.

The stock is trading with a PE ratio of 13.49 and has been as high as $10.66 and as low as $5.15 in the last 52 weeks and is currently 33.30% below its 52-week high and 38.06% above its 52-week low.

Fisher is the company's largest shareholder among the gurus with 0.43% of outstanding shares followed by Simons with 0.21%, Sarah Ketterer (Trades, Portfolio) with 0.21%, Howard Marks (Trades, Portfolio) with 0.14%, Jeremy Grantham (Trades, Portfolio) with 0.13%, Prem Watsa (Trades, Portfolio) with 0.05% and George Soros (Trades, Portfolio) with 0.05%.

Earnings per share of Celadon Group Inc.(CGI) grew by 41% over the last five years and according to the DCF calculator, the stock at the price of $9.98 is undervalued and is trading with a margin of safety of 53%.

Celadon Group through its subsidiaries provides truckload transportation services between the U.S., Canada and Mexico.

First quarter per share diluted net earnings increased 17% and revenues increased 4% from the same quarter of a year before.

The stock is trading with a PE ratio of 7.61, has been as high as $24.27 and as low as $6.19 in the last 52 weeks and is currently 59.91% below its 52-week high and 57.19% above its 52-week low.

The largest shareholder among the gurus is Simons with 0.36% of outstanding shares followed by Jones with 0.14%.

Earnings per share of Itau Corpbanca (ITCB) grew by 6% over the last five years and according to the DCF calculator, the stock at the price of $12.1 is undervalued and trading with a margin of safety of 53%.

Itau Corpbanca provides commercial and retail banking services to its customers. The company through its subsidiaries provides financial advisory services, mutual fund management, insurance brokerage and securities brokerage service.

First quarter net interest income decreased 4.3% from the same quarter of a year before and had a decrease of 2.3% from a quarter before.

The stock is trading with a PE ratio of 8.71, has been as high as $18.59 and as low as $10.58 in the last 52 weeks and is currently 34.97% below its 52-week high and 14.27% above its 52-week low.

Simons is the largest shareholder of the company among the gurus with 0.12% of outstanding shares followed by Grantham with 0.01%.

Earnings per share of Deckers Outdoor Corp.(DECK) grew by 6% over the last five years and according to the DCF calculator, the stock at the price of $50.40 is undervalued and is trading with a margin of safety of 61%.

Deckers Outdoor is engaged in designing, marketing and distribution of footwear, apparel and accessories developed for both everyday casual lifestyle use and high performance activities.

During the last quarter net sales increased 3.6% on a constant currency basis from the third quarter of a year before and gross margin was 49.1% compared to 52.9% for the same period last year.

The stock is trading with a PE ratio of 11.85, has been as high as $76.49 and as low as $40.74 in the last 52 weeks and is currently 30.36% below its 52-week high and 30.76% above its 52-week low.

The largest shareholder among the gurus is Chuck Royce (Trades, Portfolio) with 3.19% of outstanding shares followed by Simons with 0.53%, Barrow, Hanley, Mewhinney & Strauss with 0.19%, Scott Black (Trades, Portfolio) with 0.1% and Jones with 0.02%.

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