6 Undervalued Companies Growing Earnings

Hexcel tops the list

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Jun 19, 2018
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Companies growing their earnings per share are often good investments as they can return a solid profit to investors. According to the discounted cash flow calculator, the following undervalued companies have grown their earnings over a five-year period.

The earnings per share of Hexcel Corp. (HXL, Financial) have grown 14% annually over the past five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 5% margin of safety at $71.04 per share. The price-earnings ratio is 23.11. The stock price has been as high as $73.42 and as low as $50.50 in the last 52 weeks; it is currently 3.24% below its 52-week high and 40.67% above its 52-week low.

The company develops, manufactures and markets composites, including carbon fibers, reinforcements, honeycomb, adhesives and composite structures. It has a market cap of $6.36 billion and an enterprise value of $7.15 billion.

The company’s largest shareholder among the gurus is Robert Karr (Trades, Portfolio) with 0.8% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.27% and Tom Gayner (Trades, Portfolio) with 0.12%.

Gentex Corp.'s (GNTX, Financial) earnings per share have grown 18% per year over the past five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 35% margin of safety at $25.22 per share. The price-earnings ratio is 17.16. The stock price has been as high as $25.41 and as low as $16.59 in the last 52 weeks; it is currently 0.75% below its 52-week high and 52.02% above its 52-week low.

The company manufactures automatic rearview mirrors for the automotive industry. It has a market cap of $6.91 billion and an enterprise value of $6.28 billion.

With 1.22% of outstanding shares, Chuck Royce (Trades, Portfolio) is the company's largest guru shareholder, followed by Simons with 0.45%, Columbia Wanger (Trades, Portfolio) with 0.36% and First Pacific Advisors (Trades, Portfolio) with 0.22%.

The earnings per share of Credit Acceptance Corp. (CACC, Financial) have grown 21% per year over the past five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 50% margin of safety at $361.15 per share. The price-earnings ratio is 14.17. The stock price has been as high as $377.82 and as low as $235.58 in the last 52 weeks; it is currently 4.41% below its 52-week high and 53.30% above its 52-week low.

With a market cap of $6.97 billion, the company offers financing programs to auto dealers.

The company’s largest guru shareholder is Ruane Cunniff (Trades, Portfolio) with 5.62% of outstanding shares, followed by Columbia Wanger (Trades, Portfolio) with 0.57% and Jeremy Grantham (Trades, Portfolio) with 0.48%.

LG Display Co. Ltd.'s (LPL, Financial) earnings per share have grown 43% per year over the past five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 35% margin of safety at $9.52 per share. The price-earnings ratio is 6.62. The stock price has been as high as $17.05 and as low as $9.46 in the last 52 weeks; it is currently 44.16% below its 52-week high and 0.63% above its 52-week low.

The company develops and sells TFT-LCD and OLED display panels. It has a market cap of $6.98 billion and an enterprise value of $10.33 billion.

Sarah Ketterer (Trades, Portfolio) is the largest guru shareholder of the company with 0.02% of outstanding shares, followed by Simons with 0.01%.

The earnings per share of Signature Bank (SBNY, Financial) have grown 14% per year over the past five years.

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According to the DCF calculator, the stock offers a 16% margin of safety at the current price of $126.29 per share. The price-earnings ratio is 23.87. The stock price has been as high as $161.92 and as low as $116.68 in the last 52 weeks; it is currently 22% below its 52-week high and 8.2438.49% above its 52-week low.

The company offers business and personal banking products and services. It has a market cap of $6.99 billion and an enterprise value of $10.69 billion.

The company’s largest shareholder among the gurus is Jerome Dodson (Trades, Portfolio) with 0.38% of outstanding shares, followed by Simons with 0.12%, Pioneer Investments (Trades, Portfolio) with 0.11% and Prem Watsa (Trades, Portfolio) with 0.03%.

Ultrapar Participacoes SA's (UGP, Financial) earnings per share have grown 9% per year over the past five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 34% margin of safety at $12.5 per share. The price-earnings ratio is 19.57. The stock price has been as high as $26.48 and as low as $11.79 in the last 52 weeks; it is currently 52.79% below its 52-week high and 6.02% above its 52-week low.

The company is a distributor of liquefied petroleum. It also markets chemicals and provides storage services for liquid bulk. It has a market cap of $7.24 billion and an enterprise value of $9.45 billion.

With 0.53% of outstanding shares, Simons is the largest guru shareholder of the company, followed by Ken Fisher (Trades, Portfolio) with 0.05%.

Disclosure: I do not own any stocks mentioned in this article.