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Tiziano Frateschi
Tiziano Frateschi
Articles (1513)  | Author's Website |

6 Undervalued Stocks With Growing Book Value

Dollar Tree, Walt Disney on 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. 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 Dollar Tree Inc. (DLTR) has grown 21% over the past 10 years. The price-book ratio is 2.7.

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The company operates discount retail stores in the U.S. and Canada. It has a market cap of $19.65 billion.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 57% at $82.63. The stock price has been as high as $116.65 and as low as $62.63 in the past 52 weeks. It is 29.16% below its 52-week high and 25.90% above its 52-week low. The price-earnings ratio is 11.75.

Steve Mandel (Trades, Portfolio) is the largest shareholders among the guru with 2.67% of outstanding shares followed by Chuck Akre (Trades, Portfolio) with 2.03% and Steven Cohen (Trades, Portfolio) with 0.22%.

Extra Space Storage Inc. (EXR)’s BV/S has grown 8% over the past decade. The price-book ratio is 5.3 and the price to tangible book value is 5.3.

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The company operates professionally managed self-storage facilities. It has a market cap of $12.36 billion.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 10% at $98.02. The stock price has been as high as $99.56 and as low as $73.70 in the past 52 weeks. It is 1.55% below its 52-week high and 33% above its 52-week low. The price-earnings ratio is 25.66.

The company’s largest shareholder among the gurus is Jim Simons (Trades, Portfolio) with 0.2% of outstanding shares followed by Pioneer Investments (Trades, Portfolio) with 0.17% and Ken Fisher (Trades, Portfolio) with 0.14%.

The BV/S of J.M. Smucker Co. (SJM) has grown 6% over the past 10 years. The price-book ratio is 1.4.

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The company deals with a range of products spanning food, beverage and pet markets. It has a market cap of $11.65 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 38% margin of safety at $102.52. The stock price has been as high as $133.38 and as low as $96.13 in the past 52 weeks. It is 23.14% below its 52-week high and 6.65% above its 52-week low. The price-earnings ratio is 8.70.

John Rogers (Trades, Portfolio) is the largest shareholder of the company among the gurus with 1.46% of outstanding shares followed by Richard Snow (Trades, Portfolio) with 0.35%, Pioneer Investments (Trades, Portfolio) with 0.24% and Joel Greenblatt (Trades, Portfolio) with 0.09%.

Walt Disney Co. (DIS)’s BV/S has grown 6% over the past decade. The price-book ratio is 3.5.

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The diversified worldwide entertainment company has a market cap of $154.59 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 21% margin of safety at $103.98. The stock price has been as high as $113.19 and as low as $96.20 in the past 52 weeks. It is 8.14% below its 52-week high and 8.09% above its 52-week low. The price-earnings ratio is 13.85.

The company’s largest shareholder among the gurus is PRIMECAP Management (Trades, Portfolio) with 0.32% of outstanding shares followed by Fisher with 0.15%, Diamond Hill Capital (Trades, Portfolio) with 0.15% and Mairs and Power (Trades, Portfolio) with 0.13%.

The BV/S of Eastman Chemical Co. (EMN) has grown 14% over the past 10 years. The price-book ratio is 2.8.

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The advanced materials and specialty additives company has a market cap of $15.56 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 56% margin of safety at $109.07. The stock price has been as high as $112.45 and as low as $81.33 in the past 52 weeks. It is 3.01% below its 52-week high and 34.11% above its 52-week low. The price-earnings ratio is 11.37.

Diamond Hill Capital (Trades, Portfolio) is the largest shareholder of the company among the gurus with 0.82% of outstanding shares followed by Leon Cooperman (Trades, Portfolio) with 0.24%.

Kansas City Southern (KSU)’s BV/S has grown 8% over the past decade. The price-book ratio is 2.4 and the price to tangible book value is 2.4.

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The company operates in the development of roadways and railways. It has a market cap of $11.21 billion.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 58% at $109.25. The stock price has been as high as $114.91 and as low as $98.85 in the past 52 weeks. It is 4.93% below its 52-week high and 10.52% above its 52-week low. The price-earnings ratio is 11.90.

The company’s largest shareholder among the gurus is Pioneer Investments (Trades, Portfolio) with 1.95% of outstanding shares followed by Fisher with 0.64%, Simons with 0.47% and Greenblatt with 0.2%.

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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