6 Companies Growing Earnings

Stocks have a wide margin of safety

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Jun 28, 2017
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Companies with growing earnings per share (EPS) are often good investments as they can return a solid profit to investors. According to the discount cash flow (DCF) calculator, the following are undervalued companies that have grown EPS over a five-year period.

The EPS of Gentherm Inc. (THRM, Financial)Â grew 100% over the last five years.

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According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 44% at $39.05. The price has been as high as $39.90 and as low as $26.60 in the last 52 weeks. It is currently 2.13% below its 52-week high and 46.80% above its 52-week low.

The automotive parts manufacturer has a market cap of $1.44 billion. Its products include thermal temperature control devices and seat comfort cable systems.

The company’s largest shareholder among the gurus is Mairs and Power (Trades, Portfolio) with 1.98% of outstanding shares, followed by Richard Snow (Trades, Portfolio) with 0.7%.

BofI Holding Inc.'s (BOFI, Financial)Â EPS grew 32% over the last five years.

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According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 59.6% at $23.49. The price-earnings (P/E) ratio is 11.50, and the price has been as high as $32.57 and as low as $15.29 in the last 52 weeks. It is currently 27.88% below its 52-week high and 53.63% above its 52-week low.

The bank holding company has a market cap of $1.49 billion. It provides diversified financial services through its branchless distribution channels and affinity partners.

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

The EPS of Usana Health Sciences Inc.(USNA, Financial)Â grew 18% over the last five years.

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According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 23.9% at $64.35. The P/E ratio is 16.21, and the price has been as high as $75 and as low as $52.55 in the last 52 weeks. It is currently 14.20% below its 52-week high and 22.45% above its 52-week low.

The health products manufactuer has a market cap of $1.58 billion. Its key products include nutrition and personal care products.

The company’s largest shareholder among the gurus is Jim Simons (Trades, Portfolio) with 7.18% of outstanding shares, followed by Jones with 0.06%.

United Natural Foods Inc.’s (UNFI, Financial) EPS grew 11% over the last five years.

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According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 10% at $35.03. The P/E ratio is 14.09, and the price has been as high as $52.18 and as low as $29.53 in the last 52 weeks. It is currently 32.87% below its 52-week high and 18.63% above its 52-week low.

The wholesale foods distributor has a market cap of $1.77 billion. Its products include produce, perishables and frozen foods, nutritional supplements and sports nutrition products.

With 1.33% of outstanding shares, Ken Fisher (Trades, Portfolio) is the company's largest investor among the gurus, followed by Mario Gabelli (Trades, Portfolio) with 0.89%, RS Investment Management (Trades, Portfolio) with 0.55%, Royce with 0.36%, John Hussman (Trades, Portfolio) with 0.3%, Joel Greenblatt (Trades, Portfolio) with 0.06% and Jones with 0.02%.

The EPS of Buffalo Wild Wings Inc. (BWLD, Financial) grew 15% over the last five years.

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According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 2.2% at $128.90. The P/E ratio is 27.82, and the price has been as high as $175.10 and as low as $126.30 in the last 52 weeks. It is currently 26.38% below its 52-week high and 2.06% above its 52-week low.

The restaurant operator has a market cap of $2.08 billion. Operating Buffalo Wild Wings and Rusty Taco restaurant franchises, the company offers a unique dining experience for sports fans and families.

The company’s largest shareholder among the gurus is Mairs and Power with 0.13% of outstanding shares, followed by George Soros (Trades, Portfolio) with 0.03%.

Urban Outfitters Inc.'s (URBN, Financial)Â EPS grew 7% over the last five years.

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According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 23.1% at $18.06. The P/E ratio is 10.56. The price has been as high as $40.80 and as low as $16.19 in the last 52 weeks. It is currently 55.74% below its 52-week high and 11.55% above its 52-week low.

The specialty retailer has a market cap of $2.09 billion. Â The company operates under the Urban Outfitters, Anthropologie, Free People and The Vetri Family brands.

With 1.77% of outstanding shares, Simons is the company's largest investor among the gurus, followed by Greenblatt with 0.25%, Louis Moore Bacon (Trades, Portfolio) with 0.17%, Ray Dalio (Trades, Portfolio) with 0.1%, Royce with 0.05%, Murray Stahl (Trades, Portfolio) with 0.02% and Jones with 0.01%.

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