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 $3.09 billion, Trinseo SA (TSE, Financial) is trading with a price-earnings ratio of 9.67, a price-sales ratio of 0.72 and a forward price-earnings ratio of 7.74. According to the DCF calculator, the stock has a fair value of $79.3 while trading at $71.65. The stock price is stable when compared to 12 months ago and is currently 16.05% below its 52-week high and 24.18% above its 52-week low.
GuruFocus gives the company a profitability and growth rating of 5 out of 10. Its return on equity of 53.52% and return on assets of 12.30% are outperforming 89% of companies in the Global Rubber and Plastics industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.34 is below the industry median of 0.74.
The company’s largest shareholder among the gurus is Jim Simons (Trades, Portfolio) with 3.57% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 0.2% and Jeremy Grantham (Trades, Portfolio) with 0.16%.
GCP Applied Technologies Inc. (GCP, Financial) has a market cap of $2.06 billion. It is trading with a price-earnings ratio of 3.66, a price-sales ratio of 1.86 and a forward price-earnings ratio of 26.32. The stock price has decreased 8% over the past 12 months and is currently 17.65% below its 52-week high and 5.14% above its 52-week low.
GuruFocus gives the company a profitability and growth rating of 4 out of 10. The return on equity of 219.41% and the return on assets of 38.45% are outperforming 99% of companies in the Global Specialty Chemicals industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 1.09 is above the industry median of 0.96.
Mario Gabelli (Trades, Portfolio) is the company’s largest guru shareholder with 2.07% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 1.75% and Ron Baron (Trades, Portfolio) with 1.74%.
With a market cap of $8.09 billion, AerCap Holdings NV (AER, Financial) is trading with a price-earnings ratio of 8.24, a price-sales ratio of 1.80 and a forward price-earnings ratio of 8.60. According to the DCF calculator, the stock has a fair value of $136.48 while trading at about $54.95. The stock price has increased 14% over the past 12 months and is currently 2.33% below its 52-week high and 15.95% above its 52-week low.
GuruFocus gives the company a profitability and growth rating of 9 out of 10. The return on equity of 12.63% and return on assets of 2.60% are outperforming 50% of companies in the Global Airports and Air Services industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.07 is below the industry median of 0.35.
The company’s largest guru shareholder is Donald Smith (Trades, Portfolio) with 5.34% of outstanding shares, followed by David Einhorn (Trades, Portfolio) with 4.45%, Leon Cooperman (Trades, Portfolio) with 0.94% and Pioneer Investments (Trades, Portfolio) with 0.58%.
With a market cap of $2.25 billion, Tenneco Inc. (TEN, Financial) is trading with a price-earnings ratio of 11.03, a price-book ratio of 6.03 and a price-sales ratio of 0.24. According to the DCF calculator, the stock has a fair value of $42.38 while trading at about $43.69. The stock price has fallen 26% over the past 12 months and is currently 33.39% below its 52-week high and 4.57% above its 52-week low.
GuruFocus gives the company a profitability and growth rating of 6 out of 10. The return on equity of 30.48% and return on assets of 4.21% are outperforming 52% of companies in the Global Auto Parts industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.19 is below the industry median of 0.74%.
Gabelli is the company’s largest shareholder among the gurus with 1.44% of outstanding shares, followed by Columbia Wanger (Trades, Portfolio) with 1.22% and Diamond Hill Capital (Trades, Portfolio) with 0.98%.
Toyota Motor Corp. (TM, Financial) has a market cap of $189.86 billion. It is trading with a price-earnings ratio of 8.74, a price-sales ratio of 0.74 and a forward price-earnings ratio of 9.65. According to the DCF calculator, the stock has a fair value of $161.16 while trading around $129.51. The stock price has increased 17% over the past 12 months and is currently 8.14% below its 52-week high and 18.76% above its 52-week low.
GuruFocus gives the company a profitability and growth rating of 7 out of 10. The return on equity of 13.58% and return on assets of 4.99% are outperforming 56% of companies in the Global Auto Manufacturers industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.30 is below the industry median of 0.74.
The company’s largest guru shareholder is NWQ Managers (Trades, Portfolio) with 0.03% of outstanding shares, followed by Simons with 0.02% and Charles Brandes (Trades, Portfolio) with 0.01%.
Two Harbors Investment Corp. (TWO, Financial) has a market cap of $2.8 billion. It is trading with a price-earnings ratio of 5.20, a forward price-earnings ratio of 8.32 and a price-sales ratio of 5.50. According to the DCF calculator, the stock has a fair value of $30.61 while trading at about $15.97. The stock price was stable over the past 12 months and is currently 5.11% below its 52-week high and 15.31% above its 52-week low.
GuruFocus gives the company a profitability and growth rating of 3 out of 10. While the return on equity of 15.75% is outperforming the sector, the return on assets of 2.45% is underperforming 77% of companies in the Global REIT - Residential industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.33 is above the industry median of 0.06.
Paul Tudor Jones (Trades, Portfolio) is the company’s largest guru shareholder with 0.05% of outstanding shares, followed by Caxton Associates (Trades, Portfolio) with 0.03%.
Disclosure: I do not own any stocks mentioned in this article.
