Stocks With Growing Book Values and Margins of Safety

Undervalued stocks with rising BV/S

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Mar 28, 2017
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The following companies have a growing book value per share (BV/S) over the last 10 years.

BV/S is calculated as (total equity – preferred stock)/shares outstanding (EOP). Theoretically it is what the shareholders will receive if the company is liquidated. Total equity is a balance sheet item and equal to total assets less total liabilities. Because the BV/S may not reflect the company’s true value, some investors check even the tangible book value to confirm their investment ideas.

BV/S of Itau Unibanco Holding SA ADRÂ (ITUB) has grown by 10% over the last 10 years. The price-book (P/B) ratio is 1.8, and the price to tangible book ratio is 2.1

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 19% at $12.25. The price has been as high as $13.65 and as low as $7.91 in the last 52 weeks. It is 10.26% below its 52-week high and 54.87% above its 52-week low. The price-earnings (P/E) ratio is 10.12.

Itau Unibanco Holding SA provides financial products and services in Brazil. It provides investment banking, consumer credit card, real estate financing, leasing, foreign exchange and foreign trade financing services.

The company’s largest shareholder among the gurus is Howard Marks (Trades, Portfolio) with 0.12% of outstanding shares followed by Dodge & Cox with 0.09%, Jeremy Grantham (Trades, Portfolio) with 0.01% and Jim Simons (Trades, Portfolio) with 0.01%.

BV/S of Net 1 UEPS Technologies Inc. (UEPS) has grown by 8% over the last 10 years. The P/B ratio is 1.3, and the price to tangible book ratio is 2.4.

According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 31% at $12.24. The price has been as high as $13.81 and as low as $8.37 in the last 52 weeks. It is 9.20% below its 52-week high and 49.82% above its 52-week low. The P/E ratio is 7.42.

Net 1 UEPS Technologies provides payment solutions and transaction processing services across multiple industries. The company also provides financial services along with hardware solutions.

Charles de Vaulx (Trades, Portfolio) is the largest shareholder among the gurus with 5.27% of outstanding shares followed by IVA International Fund (Trades, Portfolio) with 4.29%, Simons with 3.01%, Grantham with 0.28% and Chuck Royce (Trades, Portfolio) with 0.03%.

BV/S of Taylor Devices Inc. (TAYD) has grown by 11% over the last 10 years. The P/B ratio is 1.5, and the price to tangible book ratio is 1.5.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 37% at $13.9. It has been as high as $20.45 and as low as $13.10 in the last 52 weeks. It is 32.03% below its 52-week high and 6.11% above its 52-week low. The P/E ratio is 14.33.

Taylor Devices is engaged in the design, development, manufacture and marketing of shock absorption, rate control and energy storage devices for use in machinery, equipment and structures.

The company’s largest shareholder among the gurus is Simons with 0.07% of outstanding shares.

BV/S of Pathfinder Bancorp Inc. (PBHC) has grown by 9% over the last 10 years. The P/B ratio is 1.1, and the price to tangible book ratio is 1.1.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 25% at $14.5. The price has been as high as $15.19 and as low as $10.76 in the last 52 weeks. It is 4.05% below its 52-week high and 35.4% above its 52-week low. The P/E ratio is 18.5.

It is a stock holding company. It is engaged in attracting deposits and investing deposits in loans secured by one- to four-family residential real estate, commercial real estate and business assets and in investment securities.

Infosys Ltd. ADRÂ (INFY) has a BV/S that has grown by 21% over the last 10 years. The P/B ratio is 3.6, and the price to tangible book ratio is 3.9.

According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 26% at $15.73. The price has been as high as $20.47 and as low as $13.42 in the last 52 weeks. It is 23.13% below its 52-week high and 17.25% above its 52-week low. The P/E ratio is 16.38.

Infosys provides end-to-end business solutions including consulting, design, development, software re-engineering, maintenance, systems integration, package evaluation and implementation and infrastructure management services.

Ken Fisher (Trades, Portfolio) is the largest shareholder among the gurus with 1.03% of outstanding shares followed by Grantham with 0.31%, Sarah Ketterer (Trades, Portfolio) with 0.07%, Simons with 0.02% and Bernard Horn (Trades, Portfolio) with 0.01%.

The BV/S of Waddell & Reed Financial Inc. (WDR) has grown by 13% over the last 10 years. The P/B ratio is 1.6, and the price to tangible book ratio is 2.0.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 51% at $16.48. The price has been as high as $24.27 and as low as $15.02 in the last 52 weeks. It is 32.10% below its 52-week high and 9.72% above its 52-week low. The P/E ratio is 9.17.

Waddell & Reed Financial is engaged in providing investment management, investment product underwriting and distribution and shareholder services administration to mutual funds and institutional and separately managed accounts

Fisher is the largest shareholder among the gurus with 2.23% of outstanding shares followed by Mario Gabelli (Trades, Portfolio) with 1.8%, Royce with 0.12%, Barrow, Hanley, Mewhinney & Strauss with 0.11%, Steven Cohen (Trades, Portfolio) with 0.06%, Jeff Auxier (Trades, Portfolio) with 0.04% and David Dreman (Trades, Portfolio) with 0.02%.

BV/S of AmTrust Financial Services Inc. (AFSI) has grown by 26% over the last 10 years. The P/B ratio is 1.2 while the price to tangible book ratio is almost double at 2.3.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 74% at $18.41. It has been as high as $28.48 and as low as $16.58 in the last 52 weeks. It is 35.22% below its 52-week high and 11.28% above its 52-week low. The P/E ratio is 4.94.

AmTrust Financial Services through its subsidiaries provides specialty property and casualty insurance, specialty risk and extended warranty coverage. The company also provides reinsurance for personal and commercial automotive business.

The company’s largest shareholder among the gurus is RS Investment Management (Trades, Portfolio) with 0.57% of outstanding shares followed by Simons with 0.21%, Murray Stahl (Trades, Portfolio) with 0.09%, Paul Tudor Jones (Trades, Portfolio) with 0.02% and David Dreman (Trades, Portfolio) with 0.01%.

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

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