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Tiziano Frateschi
Tiziano Frateschi
Articles (1977)  | Author's Website |

Bargain Stocks With Low P/E

DCF calculator gives companies wide margins of safety

The following stocks are trading with wide margins of safety, according to the DCF calculator, and some of them have very low P/E ratios. GuruFocus' All-in-One Screener can be used to find similar stocks.

Discover Financial Services (DFS) has a market cap of $22.95 billion and a business predictability of 5/5 stars. The stock sold for $56.7 per share Tuesday afternoon with a P/E ratio of 10.66 and according to the DCF calculator is trading with a margin of safety of 62% since its fair value is $148.32. During the last 12 months the price of the stock has dropped by 5% and is now 5.98% below its 52-week high.

The company offers credit card loans, private student loans, personal loans, home equity loans and deposit products.

Its profitability and growth is rated 8/10 with ROE of 19.83% and ROA of 2.66% that are ranked higher than 53% of the other companies in the Global Credit Services industry.

The largest shareholder among the gurus is Barrow, Hanley, Mewhinney & Strauss with 1.2% of outstanding shares followed by PRIMECAP Management (Trades, Portfolio) with 0.69%, NWQ Managers (Trades, Portfolio) with 0.54%, Pioneer Investments (Trades, Portfolio) with 0.07%, John Keeley (Trades, Portfolio) with 0.02% and Diamond Hill Capital (Trades, Portfolio) with 0.01%.

Bed Bath & Beyond Inc. (BBBY) has a market cap of $6.97 billion and a business predictability of 5/5 stars. The stock sold for $45.91 per share Tuesday afternoon with a P/E ratio of 9.09 and according to the DCF calculator is trading with a margin of safety of 49% since its fair value is $89.93. During the last 12 months the price of the stock has dropped by 35% and is now 39.27% below its 52-week high.

The company operates a chain of retail stores. It operates under the names Bed Bath & Beyond, Christmas Tree Shops, Harmon and Harmon Face Values, buybuy BABY & World Market or Cost Plus World Market.

Its profitability and growth is rated 8/10 with ROE of 32.39% and ROA of 12.62% that are ranked higher than 89% of other companies in the Global Specialty Retail industry.

HOTCHKIS & WILEY is the company's largest shareholder among the gurus with 4.87% of outstanding shares followed by PRIMECAP Management (Trades, Portfolio) with 2.71%, Jeremy Grantham (Trades, Portfolio) with 1.12%, Chuck Royce (Trades, Portfolio) with 0.99% and Ray Dalio (Trades, Portfolio) with 0.3%.

Polaris Industries Inc. (PII) has a market cap of $5.57 billion and a business predictability of 2.5/5 stars. The stock sold for $88.33 per share Tuesday afternoon with a P/E ratio of 14.00 and according to the DCF calculator is trading with a margin of safety of 49% since its fair value is $171.92. During the last 12 months the price of the stock has dropped by 43% and is now 47.99% below its 52-week high.

The company designs, engineers and manufactures off-road vehicles, which includes all-terrain vehicles and side-by-side vehicles for recreational and utility use, snowmobiles and motorcycles.

Its profitability and growth is rated 7/10 with ROE 45.00% and ROA of 18.24% that are ranked higher than 96% of the other companies in the Global Recreational Vehicles industry.

The largest shareholder among the gurus is Columbia Wanger (Trades, Portfolio) with 1.93% of outstanding shares followed by Ken Fisher (Trades, Portfolio) with 0.35%, Meridian Funds (Trades, Portfolio) with 0.23% and Mairs and Power (Trades, Portfolio) with 0.01%.

Celadon Group Inc. (CGI) has a market cap of $236.2 million. The stock sold for $8.65 per share Tuesday afternoon with a P/E ratio of 6.37 and according to the DCF calculator is trading with a margin of safety of 59% since its fair value is $21.03. During the last 12 months the price of the stock has risen by 60% and is now 57.34% below its 52-week high.

The company through its subsidiaries, provides truckload transportation services between the U.S., Canada and Mexico. It offers services such as long-haul, regional, dedicated, less-than-truckload, intermodal and logistics services.

Its profitability and growth is rated 6/10 with ROE of 10.04% and ROA of 3.07% that are ranked higher than 51% of other companies in the Global Trucking industry.

Jim Simons (Trades, Portfolio) is the company's largest shareholder among the gurus with 0.36% of outstanding shares followed by Paul Tudor Jones (Trades, Portfolio) with 0.14%.

Silicom Ltd. (SILC) has a market cap of $222.27 million and a business predictability of 3.5/5 stars. The stock sold for $30.04 per share Tuesday afternoon with a P/E ratio of 14.49 and according to the DCF calculator is trading with a margin of safety of 50% since its fair value is $59.78. During the last 12 months the price of the stock has risen by 13% and is now 31.43% below its 52-week high.

The company 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.

Its profitability and growth is rated 8/10 with ROE of 14.27% and ROA of 11.67% that are ranked higher than 80% of other companies in the Global Communication Equipment industry.

Agrium Inc. (AGU) has a market cap of $12.44 billion and a business predictability of 3.5/5 stars. The stock sold for $91.19 per share Tuesday afternoon with a P/E ratio of 13.35 and according to the DCF calculator is trading with a margin of safety of 54% since its fair value is $196.15. During the last 12 months the price of the stock has dropped by 14% and is now 14.20% below its 52-week high.

The company is a retail supplier of agricultural products and services in North and South America and producer and marketer of agricultural nutrients and industrial products.

Its profitability and growth is rated 8/10 with ROE of 15.37% and ROA of 5.60% that are ranked higher than 64% of other companies in the Global Agricultural Inputs industry.

The largest shareholder among the gurus is Jeff Ubben (Trades, Portfolio) with 2.29% of outstanding shares followed by Dodge & Cox with 2.01%, NWQ Managers (Trades, Portfolio) with 0.7%, Simons with 0.13%, Joel Greenblatt (Trades, Portfolio) with 0.12%, Grantham with 0.1%, Dalio with 0.08%, Westport Asset Management (Trades, Portfolio) with 0.08% and John Buckingham (Trades, Portfolio) with 0.01%.

ICICI Bank Ltd. (IBN) has a market cap of $22.01 billion. The stock sold for $7.94 Tuesday afternoon with a P/E ratio of 14.22 and according to the DCF calculator is trading with a margin of safety of 47% since its fair value is $15.11. During the last 12 months the price of the stock has dropped by 28% and is now 30.51% below its 52-week high.

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

Its profitability and growth is rated 6/10 with ROE of 60.09% and ROA of 6.16% that are ranked higher than 98% of other companies in the Global Banks - Regional - Asia industry.

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%, Grantham with 0.13% and Prem Watsa (Trades, Portfolio) with 0.05%.

Disclosure: I do not own any shares of any stocks mentioned in this article.

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About the author:

Tiziano Frateschi
You can read about me on www.theextraincome.info, which gives suggestions on position trading.

Visit Tiziano Frateschi's Website


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