7 Cheap Stocks With Growing Book Value

The DCF calculator selects stocks with high margins of safety

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Jun 30, 2017
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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 Steven Madden Ltd. (SHOO, Financial) has grown by 17% over the last 10 years. The current price-book (P/B) ratio is 3.20, and the price to tangible book value is 5.4.

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According to the discounted cash flow (DCF) calculator, the stock is undervalued and is trading with a margin of safety of 17% at $39.40. The price has been as high as $40.75 and as low as $32.30 in the last 52 weeks. It is currently 3.31% below its 52-week high and above 21.98% its 52-week low. The price-earnings (P/E) ratio is 19.72.

Steven Madden designs and sells fashion-forward name brand and private label footwear, handbags and accessories.

RS Investment Management (Trades, Portfolio) is the largest shareholder of the company among the gurus with 1.47% of outstanding shares, followed by Chuck Royce (Trades, Portfolio) with 0.98% and Joel Greenblatt (Trades, Portfolio) with 0.01%.

The BV/S of Medifast Inc. (MED, Financial) has grown by 16% over the last 10 years. The current P/B ratio is 5.03, and the price to tangible book value is 5.

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According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 11% at $41.76. The price has been as high as $47.35 and as low as $31.93 in the last 52 weeks. It is currently 11.81% below its 52-week high and 30.79% above its 52-week low. The P/E ratio is 25.28.

Medifast sells weight loss and weight management products and other diet products.

The company’s largest shareholder among the gurus is Jim Simons (Trades, Portfolio) with 8% of outstanding shares, followed by Caxton Associates (Trades, Portfolio) with 0.09% and Paul Tudor Jones (Trades, Portfolio) with 0.05%.

The BV/S of Novo Nordisk A/S ADRĂ‚ (NVO, Financial) has grown by 7% over the last 10 years. The current P/B ratio is 17.73, and the price to tangible book value is 19.1.

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According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 32% at $43.27. The price has been as high as $57.41 and as low as $30.89 in the last 52 weeks. It is currently 24.63% below its 52-week high and 40.08% above its 52-week low. The P/E ratio is 18.68.

The health care company develops and manufactures pharmaceutical products.

Simons is the largest shareholder of the company among the gurus with 0.64% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.41% and Tom Gayner (Trades, Portfolio) with 0.04%.

The BV/S of Bank of the Ozarks Inc. (OZRK, Financial) has grown by 23% over the last 10 years. The current P/B ratio is 1.95, and the price to tangible book value is 2.6.

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According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 39% at $45.86. The price has been as high as $56.86 and as low as $33.51 in the last 52 weeks. It is currently 19.35% below its 52-week high and 36.85% above its 52-week low. The P/E ratio is 16.80.

The Arkansas-based bank also operates in Texas, Georgia, the Carolinas, Alabama, Florida, California and New York.

Simons is the largest shareholder of the company among the gurus with 0.33% of outstanding shares, followed by Julian Robertson (Trades, Portfolio) with 0.16%, Royce with 0.08%, Lee Ainslie (Trades, Portfolio) with 0.04% and Jones with 0.02%.

The BV/S of Heartland Financial USA Inc. (HTLF, Financial) has grown by 8% over the last 10 years. The current P/B ratio is 1.6, and the price to tangible book value is 2.1.

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According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 37% at $46.65. The price has been as high as $52.65 and as low as $33.02 in the last 52 weeks. It is currently 11.40% below its 52-week high and 41.28% above its 52-week low. The P/E ratio is 15.18.

The multi-bank holding company provides commercial and retail banking.

The company’s largest shareholder among the gurus is Simons with 0.63% of outstanding shares, followed by Jones with 0.02%.

The BV/S of Anika Therapeutics Inc. (ANIK, Financial) has grown by 14% over the last 10 years. The current P/B ratio is 3.2, and the price to tangible book value is 3.4.

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According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 16% at $49.53. The price has been as high as $54.96 and as low as $41.38 in the last 52 weeks. It is currently 9.88% below its 52-week high and 19.70% above its 52-week low. The P/E ratio is 23.95.

Anika Therapeutics develops and sells therapeutic products for tissue protection, healing and repair.

Simons is the largest shareholder of the company among the gurus with 1.73% of outstanding shares, followed by Columbia Wanger (Trades, Portfolio) 1.16%, Fisher with 0.48%, Jones with 0.17% and Greenblatt with 0.15%.

The BV/S of CGI Group Inc.Ă‚ (GIB, Financial) has grown by 16% over the last 10 years. The current P/B ratio is 3.1.

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According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 30% at $51.66. The price has been as high as $51.88 and as low as $41.97 in the last 52 weeks. It is 0.42% below its 52-week high and 23.09% above its 52-week low. The P/E ratio is 19.12.

The information technology services company provides IT and business functions management, systems integration and consulting. It also sells software solutions.

Jeremy Grantham (Trades, Portfolio) is the largest shareholder of the company among the gurus with 0.28% of outstanding shares, followed by Simons with 0.08% and Greenblatt with 0.02%.

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

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