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Tiziano Frateschi
Tiziano Frateschi
Articles (1596)  | Author's Website |

6 Cheap Stocks Growing Book Value

Cheesecake Factory, Wells Fargo make the list

According to the GuruFocus All-In-One Screener, the following companies have grown their book value per share (BV/S) over the past decade.

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 Hub Group Inc. Class A (HUBG) has grown 12% over the past 10 years. The price-book (P/B) ratio is 2.0 and the price to tangible book value is 4.4. The asset-light freight transportation management company has a market cap of $1.54 billion.

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According to the discounted cash flow (DCF) calculator, the stock is undervalued and is trading with a 18% margin of safety at $44.75. The stock price has been as high as $52.25 and as low as $33.17 in the past 52 weeks. It is currently 14.35% below its 52-week high and above 34.89% its 52-week low. The price-earnings (P/E) ratio is 1.96.

Diamond Hill Capital (Trades, Portfolio) is the largest shareholders among the guru with 9.13% of outstanding shares followed by Ken Fisher (Trades, Portfolio) with 4.33%, Mairs and Power (Trades, Portfolio) with 0.67% and Jim Simons (Trades, Portfolio) with 0.45%.

China Telecom Corp. Ltd ADR (CHA)’s BV/S has grown 5% over the past decade. The P/B ratio is 0.8 and the price to tangible book value is 0.9. The company offers a range of wireline and mobile telecommunications services. It has a market cap of $36.81 billion.

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According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 25% at $45.86. The stock price has been as high as $53.78 and as low as $41.28 in the past 52 weeks. It is currently 14.72% below its 52-week high and 11.09% above its 52-week low. The P/E ratio is 13.23.

The company’s largest shareholder among the gurus is Simons with 0.03% of outstanding shares followed by Paul Tudor Jones (Trades, Portfolio) with 0.01%.

The BV/S of Aaron's Inc. (AAN) has grown 11% over the past 10 years. The P/B ratio is 2.0 and the price to tangible book value 3.9. The retailer of furniture, consumer electronics, computers and appliances has a market cap of $3.38 billion.

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According to the DCF calculator, the stock is undervalued and is trading with a 19% margin of safety at $48.21. The stock price has been as high as $49.77 and as low as $30 in the past 52 weeks. It is currently 3.13% below its 52-week high and above 60.70% its 52-week low. The price-earnings ratio is 11.88.

Diamond Hill Capital (Trades, Portfolio) is the largest shareholder of the company among the gurus with 3.06% of outstanding shares followed by Mario Gabelli (Trades, Portfolio) with 1.04% and First Pacific Advisors (Trades, Portfolio) with 0.85%.

Church & Dwight Co. Inc. (CHD)’s BV/S has grown 7% over the past decade. The P/B ratio is 5.6. The company operates in the household products industry. It has a market cap of $12.27 billion.

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According to the DCF calculator, the stock is undervalued and is trading with a 10% margin of safety at $50.27. The stock price has been as high as $54.18 and as low as $43.21 in the past 52 weeks. It is currently 7.22% below its 52-week high and 16.34% above its 52-week low. The P/E ratio is 17.33.

The company’s largest shareholder among the gurus is Ron Baron (Trades, Portfolio) with 0.61% of outstanding shares followed by Simons with 0.35%.

The BV/S of Wells Fargo & Co. (WFC) has grown 9% over the past 10 years. The price-book ratio is 1.4 and the price to tangible book value is 1.8. It is one of the largest banks in the U.S. that operates into three segments: community banking, wholesale banking and wealth and Investment management. It has a market cap of $245.59 billion.

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According to the DCF calculator, the stock is undervalued and is trading with a 35% margin of safety at $50.39. The stock price has been as high as $66.31 and as low as $49.27 in the past 52 weeks. It is currently 24.01% below its 52-week high and above 2.27% its 52-week low. The P/E ratio is 11.94.

Warren Buffett (Trades, Portfolio) is the largest guru shareholder with 9.4% of outstanding shares followed by Dodge & Cox with 1.45%, Barrow, Hanley, Mewhinney & Strauss with 0.66% and Chris Davis (Trades, Portfolio) with 0.54%.

Cheesecake Factory Inc. (CAKE)’s BV/S has grown 6% over the past decade. The P/B ratio is 4.0 and the price to tangible book value is 4.1. The company owns and operates casual dining restaurants. It has a market cap of $2.44 billion.

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According to the DCF calculator, the stock is undervalued and is trading with a 21% margin of safety at $53.07. The stock price has been as high as $67.14 and as low as $38.34 in the past 52 weeks. It is currently 20.96% below its 52-week high and 38.42% above its 52-week low. The P/E ratio is 16.25.

The company’s largest shareholder among the gurus is Baron with 2.02% of outstanding shares followed by Gabelli with 1.43%, Chuck Royce (Trades, Portfolio) with 0.8% and Richard Snow (Trades, Portfolio) with 0.55%.

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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