Companies growing their 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 Kansas City Southern (KSU, Financial) grew 9% over the past five years.
The railroad company has a market cap of $10.98 billion and enterprise value of $13.72 billion.
According to the DCF calculator, the stock is undervalued with a margin of safety of 20.8% at $104.16. The price-earnings (P/E) ratio is 20.96; the stock price has been as high as $109.13 and as low as $79.05 in the last 52 weeks. It is 4.55% below its 52-week high and 31.76% above its 52-week low.
The company’s largest shareholder among the gurus is Pioneer Investments (Trades, Portfolio) with 1.85% of outstanding shares followed by Ken Fisher (Trades, Portfolio) with 0.72%, Jim Simons (Trades, Portfolio) with 0.15% and Steven Cohen (Trades, Portfolio) with 0.13%.
Packaging Corp. of America’s (PKG, Financial) EPSÂ grew 27% over the past five years.
The packaging manufacturer has a market cap of $11.01 billion and enterprise value of $13.33 billion.
According to the DCF calculator, the stock is overvalued at $116.72. The forward P/E ratio is 22.49; the stock price has been as high as $119.43 and as low as $78.03 in the last 52 weeks. It is 2.27% below its 52-week high and 49.58% above its 52-week low.
With 1.89% of outstanding shares,Ă‚ First Eagle Investment (Trades, Portfolio) is the company's largest shareholder among the gurus followed by Pioneer Investments with 0.15%, Jeremy Grantham (Trades, Portfolio) with 0.07% and Simons with 0.02%.
The EPS of LKQ Corp.Ă‚ (LKQ, Financial) grew 16% over the past five years.
The auto parts company has a market cap of $11.31 billion and enterprise value of $14 billion.
According to the DCF calculator, the stock is undervalued and trading with a 19.1% margin of safety at $36.63. The P/E ratio is 22.75; the stock price has been as high as $36.99 and as low as $27.85 in the last 52 weeks. It is 0.97% below its 52-week high and 31.53% above its 52-week low.
With 1.15% of outstanding shares, Chuck Akre (Trades, Portfolio) is the company’s largest guru shareholder followed by Columbia Wanger (Trades, Portfolio) with 0.36% and Joel Greenblatt (Trades, Portfolio) with 0.22%.
L Brands Inc.’s (LB, Financial) EPS grew 11% over the past five years.
The women’s apparel retailer has a market cap of $11.97 billion and enterprise value of $16.38 billion.
According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 34.4% at $42.17 per share. The P/E ratio is 12.40; the stock price has been as high as $75.50 and as low as $35 in the last 52 weeks. It is 44.15% below its 52-week high and 20.49% above its 52-week low.
PRIMECAP Management (Trades, Portfolio) with 6.88% of outstanding shares is the largest investor among the gurus followed by Barrow, Hanley, Mewhinney & Strauss with 1.13%, Simons with 0.47% and David Tepper (Trades, Portfolio) with 0.29%.
The EPS of Eastman Chemical Co. (EMN, Financial) grew 9% over the past five years.
The chemical company has a market cap of $12.99 billion and enterprise value of $19.73 billion.
According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 26.9% at $89.65 per share. The P/E ratio is 14.37; the stock price has been as high as $91.39 and as low as $62.70 in the last 52 weeks. It is 1.90% below its 52-week high and 42.98% above its 52-week low.
The company’s largest shareholder among the gurus is Diamond Hill Capital (Trades, Portfolio) with 0.78% of outstanding shares followed by Leon Cooperman (Trades, Portfolio) with 0.32% and Ray Dalio (Trades, Portfolio) with 0.02%.
CarMax Inc.’s (KMX, Financial) EPSÂ grew 14% over the past five years.
The auto dealership has a market cap of $13.89 billion and enterprise value of $26.46 billion.
According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 24.5% at $76.18 per share. The P/E ratio is 20.93; the stock price has been as high as $77.64 and as low as $47.50 in the last 52 weeks. It is 1.88% below its 52-week high and 60.37% above its 52-week low.
PRIMECAP Management with 9.01% of outstanding shares is the largest guru shareholder followed by Ruane Cunniff (Trades, Portfolio) with 5.57%, Akre with 2.84%, Tom Gayner (Trades, Portfolio) with 2.69% and Chris Davis (Trades, Portfolio) with 2.41%.
Disclosure: I do not own any shares of any stocks mentioned in this article.
