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Tiziano Frateschi
Tiziano Frateschi
Articles (1378)  | Author's Website |

6 Undervalued Stocks With Growing Book Values

Universal Health tops the list

October 12, 2017 | About:

According to GuruFocus’ All-In-One Screener, the following companies have grown their book values per share (BV/S) over the past 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. Since 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 Universal Health Services Inc. (NYSE:UHS) has grown 15% over the past 10 years. The price-book (P/B) ratio is 2.1, and price to tangible book value is 10.2.

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With a market cap of $10.2 billion, the company operates health centers, surgical hospitals and acute care hospitals.

According to the discounted cash flow (DCF) calculator, the stock is undervalued and is trading with a margin of safety of 45% at $106.58. The stock price has been as high as $129.74 and as low as $99.72 in the past 52 weeks. It is currently 17.85% below its 52-week high and 6.88% above its 52-week low. The price-earnings (P/E) ratio is 14.50.

Lee Ainslie (Trades, Portfolio) is the company's largest shareholder among the gurus with 5.67% of outstanding shares, followed by the Vanguard Health Care Fund (Trades, Portfolio) with 4.42% and Larry Robbins (Trades, Portfolio) with 2.06%.

The BV/S of F5 Networks Inc. (NASDAQ:FFIV) has grown 11% over the past decade. The P/B ratio is 6.1, and the price to tangible book value is 11.4

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With a market cap of $7.4 billion, the company produces infrastructure software.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 32% at $116.4. The stock price has been as high as $149.50 and as low as $114.45 in the past 52 weeks. It is currently 22.14% below its 52-week high and 1.70% above its 52-week low. The P/E ratio is 19.34.

The company’s largest shareholder among the gurus is Jim Simons(TradesPortfolio) with 2.74% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 0.29% and Joel Greenblatt (Trades, Portfolio) with 0.21%.

The BV/S of Banco Macro SA (NYSE:BMA) has grown 27% over the past 10 years. The P/B ratio is 4.1, and the price to tangible book ratio is 4.14.

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With a market cap of $8.28 billion, the bank operates in South America.

According to the DCF calculator, the stock is undervalued and is trading with a 41% margin of safety at $123.62. The stock price has been as high as $124.58 and as low as $61.12 in the past 52 weeks. It is currently 0.77% below its 52-week high and 102.26% above its 52-week low. The P/E ratio is 18.96.

Daniel Loeb (Trades, Portfolio) is the company's largest guru shareholder with 1.34% of outstanding shares, followed by Ron Baron (Trades, Portfolio) with 0.58%, Simons with 0.1% and Caxton Associates (Trades, Portfolio) with 0.07%.

The BV/S of Allegiant Travel Co. (NASDAQ:ALGT) has grown 11% over the past decade. The P/B ratio is 4.8, and the price to tangible book value is 4.8.

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The discount airline operator has a market cap of $2.15 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 56% margin of safety at $133.55. The stock price has been as high as $182.25 and as low as $111.54 in the past 52 weeks. It is currently 26.72% below its 52-week high and 19.73% above its 52-week low. The P/E ratio is 12.53.

The company's largest guru shareholder is Simons with 7.07% of outstanding shares, followed by First Pacific Advisors (Trades, Portfolio) with 0.92%, FPA Capital Fund (Trades, Portfolio) with 0.88% and PRIMECAP Management (Trades, Portfolio) with 0.27%.

The BV/S of Reinsurance Group of America Inc. (NYSE:RGA) has grown 10% over the past 10 years. The P/B ratio is 1.2, and price to tangible book value is 1.15.

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The insurance company has a market cap of $9.12 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 15% margin of safety at $141.39. The stock price has been as high as $142.98 and as low as $106.68 in the past 52 weeks. It is currently 1.11% below its 52-week high and 32.54% above its 52-week low. The P/E ratio is 12.01.

With 0.73% of outstanding shares, Diamond Hill Capital (Trades, Portfolio) is the company's largest guru shareholder, followed by Chuck Royce (Trades, Portfolio) with 0.33% and NWQ Managers (Trades, Portfolio) with 0.19%.

The BV/S of McKesson Corp. (NYSE:MCK) has grown 9% over the past decade. The P/B ratio is 2.8.

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The pharmaceutical distributor has a market cap of $31.42 billion.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 72% at $149.41. The stock price has been as high as $169.29 and as low as $114.53 in the past 52 weeks. It is currently 11.74% below its 52-week high and 30.45% above its 52-week low. The price-earnings ratio is 6.85.

The company’s largest guru shareholder is the Vanguard Health Care Fund with 3.81% of outstanding shares, followed by Richard Pzena (Trades, Portfolio) with 1% and Robbins with 0.56%.

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.

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