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Tiziano Frateschi
Tiziano Frateschi
Articles (2157)  | Author's Website |

Growing Book Values for 7 Cheap Stocks

DCF calculator selects stocks with margins of safety

The following companies have grown their book values per share (BV/S) over the last 10 years.

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

The BV/S of Hibbett Sports Inc. (HIBB) has grown by 16% over the last 10 years. The current price-book (P/B) ratio is 1.4, and the price to tangible book is 1.4.

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Hibbett Sports is an operator of sporting goods retail stores in small to midsized markets mainly in the Southeast, Southwest, Mid-Atlantic and the Midwest.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 51% at $22.3. The price has been as high as $45.85 and as low as $21.85 in the last 52 weeks. It is 51.36% below its 52-week high and 2.06% above its 52-week low. The price-earnings (P/E) ratio is 9.07.

First Pacific Advisors (Trades, Portfolio) is the largest shareholder among the gurus with 3.19% of outstanding shares followed by Chuck Royce (Trades, Portfolio) with 2.68%, Barrow, Hanley, Mewhinney & Strauss with 0.79%, Robert Olstein (Trades, Portfolio) with 0.27% and Paul Tudor Jones (Trades, Portfolio) with 0.06%.

The BV/S of Alliance Holdings GP LPA (AHGP) has grown by 11% over the last 10 years. The P/B ratio is 2.3, and the price to tangible book is 2.9.

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Alliance Holdings GP LP is a producer and marketer of coal to U.S. utilities and industrial users. The company's ARLP Partnership operates 10 underground mining complexes in Illinois, Indiana, Kentucky, Maryland and West Virginia.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 61% at $22.84. The price has been as high as $32.70 and as low as $19 in the last 52 weeks. It is 30.15% below its 52-week high and 20.21% above its 52-week low. The P/E ratio is 6.49.

The company’s largest shareholder among the gurus is Jim Simons (Trades, Portfolio) with 0.14% of outstanding shares.

The BV/S of BofI Holding Inc. (BOFI) has grown by 19% over the last 10 years. The P/B ratio is 1.8, and the price to tangible book is 1.9.

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BofI Holding is a holding company that, through its bank holding, provides diversified financial services including consumer and business banking products through the branchless distribution channels and affinity partners.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 60% at $23.14. The price has been as high as $32.57 and as low as $15.29 in the last 52 weeks. It is 28.95% below its 52-week high and 51.34% above its 52-week low. The P/E ratio is 11.34.

Royce is the largest shareholder among the gurus with 0.55% of outstanding shares followed by David Dreman (Trades, Portfolio) with 0.03% and Jones with 0.01%.

The BV/S of Telecom Argentina SA ADR (TEO) has grown by 24% over the last 10 years. The P/B ratio is 3.7, and the price to tangible book is 5.7.

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Telecom Argentina SA provides fixed-line telecommunications services in Argentina. It also provides international long-distance service, data transmission, IT solutions outsourcing and internet services and mobile telecommunications services.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 48% at $24.93. The price has been as high as $26.17 and as low as $17.04 in the last 52 weeks. It is 4.74% below its 52-week high and 46.30% above its 52-week low. The P/E ratio is 15.67.

George Soros (Trades, Portfolio) is the largest shareholder among the gurus with 0.12% of outstanding shares.

The BV/S of Corning Inc. (GLW) has grown by 12% over the last 10 years. The P/B ratio is 1.7, and the price to tangible book is 2.0.

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Corning is the leading manufacturer and supplier of specialty glass and ceramics. Its segments are Display Technologies, Optical Communications, Environmental Technologies, Specialty Materials and Life Sciences.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 24% at $29.41. The price has been as high as $29.90 and as low as $18.88 in the last 52 weeks. It is 1.64% below its 52-week high and 55.77% above its 52-week low. The P/E ratio is 8.12.

The company’s largest shareholder among the gurus is Dodge & Cox with 3.11% of outstanding shares followed by HOTCHKIS & WILEY with 2.73%, PRIMECAP Management (Trades, Portfolio) with 2.03%, Mairs and Power (Trades, Portfolio) with 0.28%, Donald Yacktman (Trades, Portfolio) with 0.2%, Joel Greenblatt (Trades, Portfolio) with 0.19%, Yacktman Fund (Trades, Portfolio) with 0.16%, Richard Pzena (Trades, Portfolio) with 0.16%, Mario Gabelli (Trades, Portfolio) with 0.06% and John Buckingham (Trades, Portfolio) with 0.04%.

The BV/S of Jacksonville Bancorp Inc. (JXSB) has grown by 11% over the last 10 years. The P/B ratio is 1.1, and the price to tangible book is 1.2.

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Jacksonville Bancorp is a holding company for Jacksonville Savings Bank, which is engaged in the business of attracting retail deposits from the general public in its market area.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 28% at $29.81. The price has been as high as $37.20 and as low as $27.24 in the last 52 weeks. It is 19.87% below its 52-week high and 9.43% above its 52-week low. The P/E ratio is 17.96.

The BV/S of LKQ Corp. (LKQ) has grown by 18% over the last 10 years. The P/B ratio is 2.8.

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LKQ is a provider of vehicle products. The company's vehicle parts include replacement parts, components and systems used in the repair and maintenance of vehicles as well as specialty vehicle products and accessories.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 27% at $32.43. The price has been as high as $36.35 and as low as $27.85 in the last 52 weeks. It is 10.78% below its 52-week high and 16.45% above its 52-week low. The P/E ratio is 20.53.

Chuck Akre (Trades, Portfolio) is the largest shareholder among the gurus with 1.15% of outstanding shares followed by Columbia Wanger (Trades, Portfolio) with 0.51%, Simons with 0.21%, Alan Fournier (Trades, Portfolio) with 0.18%, Steven Cohen (Trades, Portfolio) with 0.17%, Pioneer Investments (Trades, Portfolio) with 0.12%, Royce with 0.06% and Ray Dalio (Trades, Portfolio) with 0.01%.

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

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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