6 Stocks With Low P/S Ratios

Guru stocks trading with low price-sales ratios

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Oct 20, 2016
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According to GuruFocus' All-in-One Screener, the following are stocks with market caps above $5 billion and are trading with low price-sales (P/S) ratios.

Viacom Inc. Class BÂ (VIAB, Financial) is trading at about $36 with a P/S ratio of 1.25 and an estimated price-earnings (P/E) multiple of 7.85. The company has a market cap of $14.43 billion and over the last 10 years, the stock has dropped by 6%. During the last 52 weeks, the price has been as high as $53.35 and as low as $30.11.

Viacom is an entertainment content company. It connects with audiences in 165 countries and territories and creates television programs, motion pictures, applications, games, consumer products, social media and other entertainment content.

The DCF calculator gives a fair value of $88.02, putting the stock undervalued with a margin of safety of 59%. The Peter Lynch earnings line suggests the stock is less undervalued, giving a fair price of $77.5.

The largest shareholder of the company among the gurus is Donald Yacktman (Trades, Portfolio) with 1.1% of outstanding shares, followed by Yacktman Fund (Trades, Portfolio) with 0.88%, John Rogers (Trades, Portfolio) with 0.77% and NWQ Managers (Trades, Portfolio) with 0.71%.

LKQ Corp. (LKQ, Financial) is trading at about $33 with a P/S ratio of 1.26 and an estimated P/E multiple of 22.69. The company has a market cap of $10.12 billion and over the last 10 years, the stock has risen by 449%. During the last 52 weeks, the price has been as high as $36.35 and as low as $23.95.

LKQ Corp provides replacement parts, components and systems needed to repair cars and trucks. The company has three operating segments: Wholesale - North America, Wholesale - Europe and Self Service.

The DCF calculator gives a fair value of $41.28, putting the stock undervalued with a margin of safety of 20%. The Peter Lynch earnings line suggests the stock is overpriced, giving a fair price of $21.8.

David Rolfe (Trades, Portfolio) is the largest shareholder among the gurus with 2.34% of outstanding shares, followed by Alan Fournier (Trades, Portfolio) with 1.43%, Chuck Akre (Trades, Portfolio) with 1.16% and Columbia Wanger (Trades, Portfolio) with 0.89%.

Viacom Inc. Class AÂ (VIA, Financial) is trading at about $41 with a P/S ratio of 1.26 and an estimated P/E multiple of 7.88. The company has a market cap of $16.14 billion and over the last 10 years, the stock has risen by 5%. During the last 52 weeks, the price has been as high as $54.69 and as low as $33.88.

Viacom is an entertainment content company. It connects with audiences in 165 countries and territories and creates television programs, motion pictures, applications, games, consumer products, social media & other entertainment content.

The DCF calculator gives a fair value of $88.02, putting the stock undervalued with a margin of safety of 54%. The Peter Lynch earnings line suggests the stock is less undervalued, giving a fair price of $77.5.

The largest shareholder of the company among the gurus is Mario Gabelli (Trades, Portfolio) with 0.79% of outstanding shares.

W.W. Grainger Inc. (GWW, Financial) is trading at about $206 with a P/S ratio of 1.29 and an estimated P/E multiple of 18.37. The company has a market cap of $12.39 billion and over the last 10 years, the stock has risen by 184%. During the last 52 weeks, the price has been as high as $239.95 and as low as $176.85.

The company is a distributor of maintenance, repair and operating supplies and other related products and services used by businesses and institutions in the United States and Canada, with expanding operations.

The DCF calculator gives a fair value of $197.89, putting the stock as overpriced by 4%. The Peter Lynch earnings line suggests the stock is more overpriced, giving a fair price of $165.4.

First Eagle Investment (Trades, Portfolio) is the largest shareholder among the gurus with 3% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 0.31%, Joel Greenblatt (Trades, Portfolio) with 0.09%, Meridian Funds (Trades, Portfolio) with 0.05% and Jim Simons (Trades, Portfolio) with 0.04%.

Banco Bilbao Vizcaya Argentaria SA ADR. (BBVA, Financial) is trading at about $6.62 with a P/S ratio of 1.29 and an estimated P/E multiple 24.04. The company has a market cap of $42.9 billion and over the last 10 years, the stock has fallen 72%. During the last 52 weeks, the price has been as high as $9.14 and as low as $5.14.

The company is an international financial group. It offers retail banking, asset management, private banking and wholesale banking.

The DCF calculator gives a fair value of $2.95, putting the stock as overpriced by 124%. The Peter Lynch earnings line suggests the stock is less overpriced, giving a fair price of $4.2.

Credit Suisse Group AG ADR. (CS) is trading at about $13.69 with a P/S ratio of 1.29 and an estimated forward P/E multiple 16.26. The company has a market cap of $28.49 billion and over the last 10 years, the stock has dropped by 77%. During the last 52 weeks, the price has been as high as $26.30 and as low as $10.01.

The company provides banking and financial services. It operates in two segments, Private Banking & Wealth Management and Investment Banking.

The largest shareholder of the company among the gurus is Ken Fisher (Trades, Portfolio) with 0.5% of outstanding shares, followed by Charles Brandes (Trades, Portfolio) with 0.3%, Dodge & Cox with 0.07%, Jim Simons (Trades, Portfolio) with 0.05% and Jeff Auxier (Trades, Portfolio) with 0.01%.

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

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