6 Cheap Companies Growing Their Book Value

Ever-Glory International tops the list

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Aug 10, 2018
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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 a 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 Ever-Glory International Group Inc. (EVK, Financial) has grown 14% over the last 10 years. The price-book ratio is 0.5 and the price to tangible book value is 6.32.

The retailer of branded fashion apparel has a market cap of $48.83 million.

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According to the discounted cash flow calculator, the stock is undervalued and is trading with a 67% margin of safety at $3.5. The stock price has been as high as $4.5 and as low as $1.96 in the last 52 weeks. It is currently 20% below its 52-week high and 83.67% above its 52-week low. The price-earnings ratio is 3.98.

ASE Technology Holding Co. Ltd.'s (ASX, Financial) BV/S has grown 10% over the past decade. The price-book ratio is 1.7 and the price to tangible book value is 1.77.

The semiconductor company has a market cap of $10.74 billion.

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According to the DCF calculator, the stock is undervalued and is trading with a 15% of margin of safety at $5.02. The stock price has been as high as $8 and as low as $4.44 in the last 52 weeks. It is currently 37.25% below its 52-week high and 13.06% above its 52-week low. The price-earnings ratio is 12.69.

The company’s largest shareholder among the gurus is Ken Fisher (Trades, Portfolio) with 1.93% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.05%.

The BV/S of Aircastle Ltd. (AYR, Financial) has grown 5% over the last 10 years. The price-book ratio is 0.8.

The company, which leases commercial jet aircraft, has a market cap of $1.61 billion.

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According to the DCF calculator, the stock is undervalued and is trading with a 31% margin of safety at $20.61. The stock price has been as high as $25.30 and as low as $18.97 in the last 52 weeks. It is currently 18.74% below its 52-week high and 8.38% above its 52-week low. The price-earnings ratio is 7.39.

Diamond Hill Capital (Trades, Portfolio) is the largest guru shareholder of the company with 3.06% of outstanding shares, followed by Donald Smith (Trades, Portfolio) with 0.69%.

Carriage Services Inc.'s (CSV, Financial) BV/S has grown 8% over the past decade. The price-book ratio is 1.6.

The company, which operates funeral homes, has a market cap of $453 million.

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According to the DCF calculator, the stock is undervalued and is trading with a 61% margin of safety at $23.60. The stock price has been as high as $28.96 and as low as $22.16 in the last 52 weeks. It is currenlty 18.37% below its 52-week high and 6.68% above its 52-week low. The price-earnings ratio is 11.16.

The company’s largest guru shareholder is Simons with 5.3% of outstanding shares, followed by Paul Tudor Jones (Trades, Portfolio) with 0.06%.

The BV/S of Skyworks Solutions Inc. (SWKS, Financial) has grown 16% over the last 10 years. The price-book ratio is 4.2 and the price to tangible book value is 5.5.

The semiconductor manufacturer has a market cap of $16.88 billion.

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According to the DCF calculator, the stock is undervalued and is trading with a 33% margin of safety at $94.31. The stock price has been as high as $17.65 and as low as $86.13 in the past 52 weeks. It is currently 19.85% below its 52-week high and 9.49% above its 52-week low. The price-earnings ratio is 19.03.

Manning & Napier Advisors is the largest shareholder of the company among the gurus with 1.22% of outstanding shares, followed by Richard Snow (Trades, Portfolio) with 0.19% and Simons with 0.17%

Tucows Inc.'s (TCX, Financial) BV/S has grown 15% over the past decade. The price-book ratio is 8.9.

The internet services provider has a market cap of $581 million.

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According to the DCF calculator, the stock is undervalued and is trading with a 12% margin of safety at $54.85. The stock price has been as high as $71.75 and as low as $49.7 in the last 52 weeks. It is currently 23.41% below its 52-week high and 10.56% above its 52-week low. The price-earnings ratio is 24.97.

The company’s largest guru shareholder is Simons with 5.0% of outstanding shares, followed by Greenblatt with 0.12%.

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