1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Tiziano Frateschi
Tiziano Frateschi
Articles (1378)  | Author's Website |

Growing EPS for Synnex, Gentex, Axis Capital

DCF gives a wide margin of safety

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 Home BancShares Inc. (HOMB) grew 23% over the last five years.

1241706743.png

According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 32.7% at $24.69. The price has been as high as $29.69 and as low as $19.74 in the last 52 weeks. It is 16.17% below its 52-week high and 26.09% above its 52-week low.

With a market cap of $3.54 billion the company is active in the financial services sector in the U.S. The bank provides a broad range of commercial and retail banking as well as related financial services.

Grand Canyon Education Inc. (LOPE)’s EPS grew 23% over the last five years.

1297368183.png

According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 15.9% at $79.13. The price has been as high as $83.00 and as low as $39.07 in the last 52 weeks. It is currently 5.07% below its 52-week high and 101.66% above its 52-week low.

Grand Canyon Education has a market cap of $3.79 billion and is an American for-profit educational company that operates a private university in Phoenix as well as online educational programs.

Jim Simons (Trades, Portfolio) with 1.71% of outstanding shares is the largest investor among the gurus followed by Ken Heebner (Trades, Portfolio) with 0.34% and Jeremy Grantham (Trades, Portfolio) with 0.1%.

EPS of Synnex Corp. (SNX) grew 9% over the last five years.

1061202487.png

According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 2.1% at $120.40. The price-earnings (P/E) ratio is 17.28, and the price has been as high as $131.35 and as low as $97.43 in the last 52 weeks. It is currently 8.20% below its 52-week high and 23.76% above its 52-week low.

The company has a market cap of $4.81 billion and is a business process services company, providing a comprehensive range of distribution, logistics and integration services. It operates in two segments: Technology Solutions and Concentrix.

The company’s largest shareholder among the gurus is Simons with 0.23% of outstanding shares followed by Grantham with 0.01% and Paul Tudor Jones (Trades, Portfolio) with 0.01%.

The EPS of Hexcel Corp. (HXL) grew 15% over the last five years.

According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 14.4% at $54.21. The P/E ratio is 19.64, and the price has been as high as $55.91 and as low as $41.03 in the last 52 weeks. It is currently 2.43% below its 52-week high and 32.95% above its 52-week low.

With a market cap of $4.93 billion it is a composites company. It develops, manufactures and markets composites including carbon fibers, reinforcements, honeycomb, adhesives and composite structures for use in the Commercial Aerospace, Space and Defense and Industrial markets.

Lou Simpson (Trades, Portfolio) with 2.16% of outstanding shares is the largest investor among the gurus followed by Steven Cohen (Trades, Portfolio) with 0.85%, Robert Karr (Trades, Portfolio) with 0.43% and Tom Gayner (Trades, Portfolio) with 0.04%.

EPS of Axis Capital Holdings Ltd. (AXS) grew 92% over the last five years.

According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 7.6% at $63.94. The P/E ratio is 13.38, and the price has been as high as $71.06 and as low as $52.67 in the last 52 weeks. It is currently 10.08% below its 52-week high and 21.32% above its 52-week low.

Axis Capital Holdings has a market cap of $5.41 billion and is a global property and casualty insurance company. The firm along with its subsidiaries provides its clients and distribution partners with various products and services around the world.

The company’s largest shareholder among the gurus is Richard Pzena (Trades, Portfolio) with 5.6% of outstanding shares followed by NWQ Managers (Trades, Portfolio) with 0.95%, Donald Smith (Trades, Portfolio) with 0.48%, Simons with 0.2%, John Buckingham (Trades, Portfolio) with 0.11% and Jones with 0.01%.

The EPS of Gentex Corp. (GNTX) grew 18% over the last five years.

533053225.png

According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 33% at $18.88. The P/E ratio is 15.93, and the price has been as high as $22.12 and as low as $15.79 in the last 52 weeks. It is currently 15.10% below its 52-week high and 18.94% above its 52-week low.

Gentex has a market cap of $5.42 billion and designs and manufactures automatic-dimming rearview mirrors and electronics for the automotive industry, dimmable aircraft windows for the aviation industry and commercial smoke alarms and signaling devices for the fire protection industry.

Chuck Royce (Trades, Portfolio) with 2.06% of outstanding shares is the largest investor among the gurus followed by Columbia Wanger (Trades, Portfolio) with 1.31%, Grantham with 0.1%, Mario Gabelli (Trades, Portfolio) with 0.09%, John Hussman (Trades, Portfolio) with 0.07%, Murray Stahl (Trades, Portfolio) with 0.01% and Joel Greenblatt (Trades, Portfolio) with 0.01%.

The EPS of NewMarket Corp. (NEU) grew 6% over the last five years.

896227415.png

According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 22.5% at $458.68. The P/E ratio is 22.16, and the price has been as high as $483.86 and as low as $387.90 in the last 52 weeks. It is currently 4.81% below its 52-week high and 19.04% above its 52-week low.

NewMarket has a market cap of $5.44 billion and manufactures and sells petroleum additives used in lubricating oils and fuels to enhance their performance in machinery, vehicles and other equipment. The petroleum additives market has two products: lubricant additives and fuel additives.

The company’s largest shareholder among the gurus is Simons with 0.16% of outstanding shares followed by Gabelli with 0.14%, Royce with 0.12% and Stahl 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 this blog: www.theextraincome.info

It gives suggestions on position trading.

Visit Tiziano Frateschi's Website


Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:


Performances of the stocks mentioned by Tiziano Frateschi


User Generated Screeners


DBrizanDVB24FEB2018 140a
DBrizanDVB24FEB2018 136a
yowie89Momentum
DBrizanDVB24FEB2018 103a
DBrizanDVB24FEB2018 1221a
DBrizanDVB23FEB2018
sardeb97Piotroski Value
andymercerintrinsic8
pbarker46Hist. Lows
dnagleylow goodw high roc low wacc no
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK