6 Stocks With a Low Price-Sales Ratio

Domtar Corp tops the list

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Jun 25, 2018
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According to the GuruFocus All-in-One Screener, the following stocks with market caps above $5 billion look cheap since they are trading with low price-sales ratios.

Domtar Corp. (UFS, Financial) is trading around $46.44 per share with a price-sales ratio of 0.56 and a forward price-earnings ratio of 12.53. With a market cap of $2.92 billion, the stock price has risen at an annualized rate of 5% over the last 10 years.

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The company produces an assortment of pulp, paper and personal care products.Ă‚

Joel Greenblatt (Trades, Portfolio) is the company's largest shareholder among the gurus with 0.4% of outstanding shares, followed by Chuck Royce (Trades, Portfolio) with 0.17%, Jim Simons (Trades, Portfolio) with 0.13% and Steven Cohen (Trades, Portfolio) with 0.12%.

TC Pipelines LP (TCP, Financial) is trading around $26.15 per share with a price-sales ratio of 4.29, a price-earnings ratio of 7.65 and a forward price-earnings ratio of 7.65. With a market cap of $1.91 billion, the stock price has risen at an annualized rate of 5.1% over the past decade.

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The company operates in the management of energy infrastructure assets in North America. The discounted cash flow calculator gives the stock a fair value of $36.81 per share, suggesting it is undervalued with a 29% of margin of safety. The Peter Lynch earnings line also suggests the stock is undervalued, giving it a fair value of $47.55.

T Boone Pickens (Trades, Portfolio) is the company's largest shareholder among the gurus with 0.13% of outstanding shares.

Chevron Corp. (CVX, Financial) is trading around $122.59 per share with a price-sales ratio of 1.68, a price-earnings ratio of 22.96 and a forward price-earnings ratio of 17.24. With a market cap of $234.26 billion, the stock price has risen at an annualized rate of 5.1% over the last 10 years.

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The company produces and refines oil. The discounted cash flow calculator gives the stock a fair value of $57.15 per share, suggesting it is overpriced by 115%. The Peter Lynch earnings line gives the stock a fair value of $72.75.

Barrow, Hanley, Mewhinney & Strauss is the largest guru shareholder of the company with 0.4% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.22%, Pioneer Investments (Trades, Portfolio) with 0.1% and T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.1%.

VeriFone Systems Inc. (PAY, Financial) is trading around $22.84 per share with a price-sales ratio of 1.41 and a forward price-earnings ratio of 15.46. With a market cap of $2.53 billion, the stock price has risen at an annualized rate of 5.2% over the past decade.

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The company sells hardware and provides complementary software and services.

With 7.62% of outstanding shares,Ă‚ Sarah Ketterer (Trades, Portfolio) is the company's largest guru shareholder, followed by Richard Snow (Trades, Portfolio) with 3.68% and Fisher with 3.67%.

Northern Trust Corp. (NTRS, Financial) is trading around $107.73 per share with a price-sales ratio of 4.43, a price-earnings ratio of 19.91 and a forward price-earnings ratio of 17.04. With a market cap of $24.243 billion, the stock price has risen at an annualized rate of 5.2% over the last 10 years.

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The financial services company provides asset servicing, fund administration, fiduciary and banking solutions. The discounted cash flow calculator gives the stock a fair value of $57.9 per share, suggesting it is overpriced by 86%. The Peter Lynch earnings line gives the stock a fair value of $106.75.

PRIMECAP Management (Trades, Portfolio) is the company's largest shareholder among the gurus with 1.42% of outstanding shares, followed by John Rogers (Trades, Portfolio) with 0.8%, the T Rowe Price Equity Income Fund with 0.4% and Mario Gabelli (Trades, Portfolio) with 0.28%.

Assurant Inc. (AIZ, Financial) is trading around $102.2 per share with a price-sales ratio of 0.87, a price-earnings ratio of 11.71 and a forward price-earnings ratio of 14.31. With a market cap of $6.45 billion, the stock price has risen at an annualized rate of 5.3% over the past decade.

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The company provides property-casualty, health, employee benefit and warranty insurance. The DCF calculator gives the stock a fair value of $100.83, suggesting it is fairly valued. The Peter Lynch earnings line gives a fair price of $139.50.

Simons is the largest shareholder among the gurus with 0.07% of outstanding shares, followed by Pioneer Investments with 0.04% and Caxton Associates (Trades, Portfolio) with 0.02%.

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