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Tiziano Frateschi
Tiziano Frateschi
Articles (1641)  | Author's Website |

5 Low PE Stocks

A Norwegian cruise line tops the list

September 11, 2018 | About:

The following 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 $11.83 billion, Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is trading with a price-earnings ratio of 14.72, a price-sales ratio of 2.13 and a forward price-earnings ratio of 10.32. According to the discounted cash flow calculator, the stock has a fair value of $35.85 while trading at $53.42. The stock price has fallen 6% over the last 12 months and is currently 12.68% below its 52-week high and 15.73% above its 52-week low.

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GuruFocus gives the cruise company a profitability and growth rating of 9 out of 10. The return on equity of 15.02% and return on assets of 5.74% are outperforming 69% of companies in the Global Leisure industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.03 is above the industry median of 0.71.

The company’s largest shareholder among the gurus is Barrow, Hanley, Mewhinney & Strauss with 2.5% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 2.42% and Ken Heebner (Trades, Portfolio) with 0.52%.

With a $2.67 billion market cap, Carpenter Technology Corp. (NYSE:CRS) is trading with a price-earnings ratio of 14.38, a price-sales ratio of 1.25 and a forward price-earnings ratio of 15.11. According to the DCF calculator, the stock has a fair value of $41.95 while trading at $57. The stock price has climbed 44% over the last 12 months and is currently 8.26% below its 52-week high and 44.12% above its 52-week low.

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GuruFocus gives the steel company a profitability and growth rating of 7 out of 10. The return on equity of 14.09% and return on assets of 6.41% are outperforming 69% of companies in the Global Metal Fabrication industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.10 is below the industry median of 0.89.

Chuck Royce (Trades, Portfolio) is the company’s largest guru shareholder with 1.56% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.53% and Barrow, Hanley, Mewhinney & Strauss with 0.26%.

With a market cap of $8.87 billion, Pearson PLC (NYSE:PSO) is trading with a price-earnings ratio of 11.75, a price-sales ratio of 1.61 and a forward price-earnings ratio of 15.29. According to the DCF calculator, the stock has a fair value of $10.89 while trading at $11.48. The stock price has increased 49% over the last 12 months and is currently 9.82% below its 52-week high and 50.66% above its 52-week low.

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GuruFocus gives the publishing company a profitability and growth rating of 6 out of 10. The return on equity of 15.20% and return on assets of 7.52% are outperforming 62% of companies in the Global Publishing industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.30 is below the industry median of 1.36.

The company’s largest shareholder among the gurus is Jim Simons (Trades, Portfolio) with 0.08% of outstanding shares.

GrafTech International Ltd. (NYSE:EAF) has a market cap of $5 billion and is trading with a price-earnings ratio of 12.47, a price-sales ratio of 4.31 and a forward price-earnings ratio of 4.87. According to the DCF calculator, the stock has a fair value of $14.98 while trading at $17.22. The stock price has risen 35% over the last 12 months and is currently 6.40% below its 52-week high and 73.12% above its 52-week low.

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GuruFocus gives the company, which manufactures carbon and graphite products, a profitability and growth rating of 6 out of 10. The return on assets of 36.67% is outperforming 99% of companies in the Global Diversified Industrials industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.08 is below the industry median of 0.89.

Joel Greenblatt (Trades, Portfolio) is the largest guru shareholder of the company with 0.02% of outstanding shares, followed by Paul Tudor Jones (Trades, Portfolio) with 0.01%.

Minerals Technologies Inc. (NYSE:MTX) has a market cap of $2.34 billion. It is trading with a price-earnings ratio of 11.69, a price-sales ratio of 1.35 and a forward price-earnings ratio of 12.20. According to the DCF calculator, the stock has a fair value of $60.57 while trading at $66.3. The stock price is flat from 12 months ago and is currently 17.95% below its 52-week high and 3.51 % above its 52-week low.

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GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 16.43% and return on assets of 6.71% are outperforming 63% of companies in the Global Chemicals industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.19 is below the industry median of 0.72.

The company’s largest shareholder among the gurus is Royce with 4.31% of outstanding shares, followed by Mario Gabelli (Trades, Portfolio) with 0.53%, Greenblatt with 0.07% and Hotchkis & Wiley with 0.06%.

Disclosure: I do not own 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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