The following six stocks have low price-earnings ratios and have been bought by gurus. While some of them are great investments, others need to be checked again, according to the discounted cash flow calculator.
With a market cap of $11.05 billion, Unum Group (UNM, Financial) is trading with a price-earnings ratio of 11.36. According to the DCF calculator, the stock has a fair value of $57.75 while trading at $49.69.
GuruFocus gives the company a profitability and growth rating of 5 out of 10. Its return on equity of 10.71% and return on assets of 1.57% are outperforming 60% of companies in the Global Insurance - Life industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.03 is below the industry median of 7.09.
Donald Smith (Trades, Portfolio) is the company's largest shareholder among the gurus with 1.02% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.46%.
With a market cap of $2.61 billion, Taylor Morrison Home Corp. (TMHC, Financial) is trading with a price-earnings ratio of 16.08. According to the DCF calculator, the stock has a fair value of $15.73 while trading around $23.
GuruFocus gives the company a profitability and growth rating of 8 out of 10. The ROE of 8.09% and ROA of 2.21% are outperforming 50% of companies in the Global Residential Construction industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.42 is below the industry median of 0.56.
The company's largest guru shareholder is Smith with 5.8% of outstanding shares, followed by NWQ Managers (Trades, Portfolio) with 1.91% and Jim Simons (Trades, Portfolio) with 1.39%.
With a market cap of $2.02 billion, Sanmina Corp. (SANM, Financial) is trading with a forward price-earnings ratio of 14.22.
GuruFocus gives the company a profitability and growth rating of 6 out of 10. The ROE of -3.79% and ROA of -1.62% are underperforming 80% of companies in the Global Electronic Components industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.72 is below the industry median of 1.37.
Diamond Hill Capital (Trades, Portfolio) is a notable guru shareholder of the company with 1.47% of outstanding shares, followed by Chuck Royce (Trades, Portfolio) with 1.38%.
With a market cap of $2.47 billion, Iamgold Corp. (IAG, Financial) is trading with a price-earnings ratio of 4.57. According to the DCF calculator, the stock has a fair value of $11.45 while trading at about $4.97.
GuruFocus gives the company a profitability and growth rating of 5 out of 10. The ROE of 19.96% and ROA of 13.42% are outperforming 93% of companies in the Global Gold industry. Its inancial strength is rated 7 out of 10. The cash-debt ratio is 2.02.
Simons is a notable guru shareholder of the company with 5.96% of outstanding shares, followed by John Paulson (Trades, Portfolio) with 0.83% and Jeremy Grantham (Trades, Portfolio) with 0.15%.
Time Warner Inc. (TWX, Financial) has a market cap of $74.18 billion and an enterprise value of $95.3 billion. It is trading with a price-earnings ratio of 14.39. According to the DCF calculator, the stock has a fair value of $70.95 while trading at about $95.
GuruFocus gives the company a profitability and growth rating of 7 out of 10. Its ROE of 19.97% and ROA of 7.83% are outperforming 80% of companies in the Global Media – Diversified industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.11 is below the industry median of 0.90.
Dodge & Cox is the largest shareholder of the company among the gurus with 2.68% of outstanding shares, followed by Seth Klarman (Trades, Portfolio) with 1.04% and Steven Cohen (Trades, Portfolio) with 0.79%.
Bojangles Inc. (BOJA, Financial) has a market cap of $477.27 million and an enterprise value of $624.63 million. It is trading with a price-earnings ratio of 7.64. According to the DCF calculator, the stock has a fair value of $20.01 while trading at about $14.
GuruFocus gives the company a profitability and growth rating of 6 out of 10. Its ROE of 15.09% and ROA of 5.85% are outperforming 67% of companies in the Global Restaurants industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.11 is below the industry median of 0.66.
With, 0.35% of outstanding shares, Hotchkis & Wiley is a notable guru shareholder of the company.
Disclosure: I do not own any stocks mentioned in this article.
