7 Stocks With Low P/S Ratios

All-in-One Screener identifies stocks with $5 billion market caps that look cheap

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Jan 11, 2017
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According to GuruFocus' All-in-One Screener, the following stocks with market caps above $5 billion look cheap since they are trading with low price-sales (P/S) ratios.

ABB Ltd. ADRĂ‚ (ABB) is trading at about $22 with a P/S ratio of 1.44, a trailing 12-month price-earnings (P/E) multiple of 28.73 and an estimated forward P/E multiple of 18.83. The company has a market cap of $47.2 billion, and the stock price has risen with an annualized rate of 5% over the last 10 years.

The DCF model gives the stock a fair value of $8.35, suggesting it is overpriced by 165% at current prices. The Peter Lynch earnings line suggests the stock is less overpriced, giving a fair price of $11.7.

The company provides power and automation technologies. It offers products, systems, solutions and services that are designed to boost industrial productivity, increase power grid reliability and enhance energy efficiency.

Barrow, Hanley, Mewhinney & Strauss is the largest shareholder among the gurus with 0.11% of outstanding shares followed by Ken Fisher (Trades, Portfolio) with 0.03%, Sarah Ketterer (Trades, Portfolio) with 0.02% and Manning & Napier Advisors Inc. with 0.01%.

Invesco Ltd. (IVZ) is trading at about $30 with a P/S ratio of 2.63, a trailing 12-month P/E multiple of 15.43 and an estimated forward P/E multiple of 12.24. The company has a market cap of $12.53 billion, and the stock price has risen with an annualized rate of 5% over the last 10 years.

The DCF model gives the stock a fair value of $30.97, suggesting it is fairly priced.

It is an investment management company operating in more than 20 countries. It provides retail and institutional clients with an array of investment management capabilities. It has presence in the institutional and retail markets.

The largest shareholder among the gurus is Richard Pzena (Trades, Portfolio) with 0.62% of outstanding shares followed by Pioneer Investments (Trades, Portfolio) with 0.52%, Paul Tudor Jones (Trades, Portfolio) with 0.15%, Robert Olstein (Trades, Portfolio) with 0.1%, Steven Cohen (Trades, Portfolio) with 0.05%, First Pacific Advisors (Trades, Portfolio) with 0.04% and Joel Greenblatt (Trades, Portfolio) with 0.01%.

Ameris Bancorp (ABCB) is trading at about $43.53 with a P/S ratio of 4.69, a trailing 12-month P/E multiple of 22.06 and an estimated forward P/E multiple of 16.50. The company has a market cap of $1.53 billion, and the stock price has risen with an annualized rate of 5.1% over the last 10 years.

The DCF model gives the stock a fair value of $21.19, suggesting it is overpriced by 106% at current prices. The Peter Lynch earnings line suggests the stock is less overpriced, giving a fair price of $29.7.

It is a financial holding company that through its subsidiary Ameris Bank operates full-service banking services for its retail and commercial customers.

NWQ Managers (Trades, Portfolio) is the largest shareholder among the gurus with 3.53% of outstanding shares followed by Jim Simons (Trades, Portfolio) with 0.86%, Bernard Horn (Trades, Portfolio) with 0.53%, Fisher with 0.14% and Jones with 0.03%.

GATX Corp. (GATX) is trading at about $59 with a P/S ratio of 1.72, a trailing 12-month P/E multiple of 8.63 and an estimated forward P/E multiple of 8.63. The company has a market cap of $2.37 billion, and the stock price has risen with an annualized rate of 5.1% over the last 10 years.

The DCF model gives the stock a fair value of $73.52, suggesting it is undervalued with a margin of safety of 19% at current prices. The Peter Lynch earnings line suggests the stock is more undervalued, giving a fair price of $103.

The company leases, operates, manages and remarkets long-lived used assets in the rail and marine market. It also provides leasing, shipping, asset remarketing and asset management services.

The largest shareholder among the gurus is Mario Gabelli (Trades, Portfolio) with 7.33% of outstanding shares followed by Simons with 0.36% and Jones with 0.03%.

Northern Trust Corp. (NTRS) is trading at about $89 with a P/S ratio of 4.21, a trailing 12-month P/E multiple of 21.40 and an estimated forward P/E multiple of 18.87. The company has a market cap of $20.21 billion, and the stock price has dropped with an annualized rate of 5.2% over the last 10 years.

The DCF model gives the stock a fair value of $44.63, suggesting it is overpriced by 100% at current prices. The Peter Lynch earnings line suggests the stock is less overpriced, putting a price of $62.5.

It is a financial holding company that provides asset servicing, fund administration, asset management, fiduciary and banking solutions for corporations, institutions, families and individuals.

The largest shareholder among the gurus is T Rowe Price Equity Income Fund (Trades, Portfolio) with 1.71% of outstanding shares followed by John Rogers (Trades, Portfolio) with 1.1%, PRIMECAP Management (Trades, Portfolio) with 0.87%, Gabelli with 0.45%, Pioneer Investments with 0.12%, Chuck Royce (Trades, Portfolio) with 0.05% and Fisher with 0.04%.

Simpson Manufacturing Co. Inc. (SSD) is trading at about $45 with a P/S ratio of 2.59, a trailing 12-month P/E multiple of 24.97 and an estimated forward P/E multiple of 20.45. The company has a market cap of $2.08 billion, and the stock price has risen with an annualized rate of 5.2% over the last 10 years.

The DCF model gives the stock a fair value of $19.26, suggesting it is overpriced by 133% at current prices. The Peter Lynch earnings line suggests the stock is less overpriced, giving a fair price of $27.

The company through its subsidiary designs, engineers and manufactures wood construction products including connectors, truss plates, fastening systems, fasteners and prefabricated shearwalls and concrete construction products.

Rogers is the largest shareholder among the gurus with 5.18% of outstanding shares followed by Barrow, Hanley, Mewhinney & Strauss with 4.52%, Royce with 2.51% and Jones with 0.02%.

Novartis AG ADRĂ‚ (NVS) is trading at about $74 with a P/S ratio of 3.74, a trailing 12-month P/E multiple of 27.01 and an estimated forward P/E multiple of 15.11. The company has a market cap of $176.05 billion, and the stock price has risen with an annualized rate of 5.2% over the last 10 years.

The DCF model gives the stock a fair value of $30.39, suggesting it is overpriced by 144% at current prices. The Peter Lynch earnings line suggests the stock is less overpriced, giving a fair price of $42.6.

It is engaged in the research, development, manufacturing and marketing of health care products and pharmaceuticals.

Dodge & Cox is the largest shareholder among the gurus with 1.83% of outstanding shares followed by PRIMECAP Management with 0.87%, Fisher with 0.26%, Manning & Napier Advisors with 0.16%, Simons with 0.11%, Ketterer with 0.01%, Tweedy Browne (Trades, Portfolio) with 0.01% and Samuel Isaly (Trades, Portfolio) with 0.01%.

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

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