4 Companies Growing Their Book Value

Big Lots tops the list

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Sep 18, 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 Big Lots Inc. (BIG, Financial) has grown 6% over the last 10 years. The price-book ratio is 2.8 and the price to tangible book value is 2.8.

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The operator of discount retail stores has a $1.66 billion market cap.

According to the DCF calculator, the stock is undervalued and is trading with a 12% margin of safety at $41.59. The stock price has been as high as $64.42 and as low as $36.20 in the last 52 weeks. It is currently 35.44% below its 52-week high and 14.89% above its 52-week low. The price-earnings ratio is 10.77.

Richard Snow (Trades, Portfolio) is the largest shareholder of the company among the gurus with 3.48% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 1.27%, Lee Ainslie (Trades, Portfolio) with 0.5% and Steven Cohen (Trades, Portfolio) with 0.29%.

Rush Enterprises Inc.'s (RUSHB, Financial) BV/S has grown 10% over the past decade. The price-book ratio is 1.5 and the price to tangible book value is 2.1.

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The dealer of commercial vehicles has a market cap of $1.61 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 59% margin of safety at $42.05. The stock price has been as high as $52.76 and as low as $36.61 in the last 52 weeks. It is currently 20.30% below its 52-week high and 14.86% above its 52-week low. The price-earnings ratio is 9.04.

The company’s largest guru shareholder is Mario Gabelli (Trades, Portfolio) with 1.6% of outstanding shares, followed by Simons with 0.72% and Ronald Muhlenkamp (Trades, Portfolio) with 0.01%.

The BV/S of Brookfield Asset Management Inc. (BAM, Financial) has grown 18% over the last 10 years. The price-book ratio is 1.7 and the price to tangible book value is 8.9.

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The asset management company has a $40.51 billion market cap.

According to the DCF calculator, the stock is undervalued and is trading with a 18% margin of safety at $42.32. The stock price has been as high as $44.33 and as low as $37.22 in the last 52 weeks. It is currently 4.53% below its 52-week high and 13.70% above its 52-week low. The price-earnings ratio is 15.99.

Lou Simpson (Trades, Portfolio) is the largest shareholder of the company among the gurus with 1.02% of outstanding shares, followed by Tom Gayner (Trades, Portfolio) with 0.65%, Third Avenue Management (Trades, Portfolio) with 0.47% and Murray Stahl (Trades, Portfolio) with 0.2%.

Novo Nordisk A/S's (NVO, Financial) BV/S has grown 7% over the past decade. The price-book ratio is 15.4 and the price to tangible book value is 16.9.

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The pharmaceutical company has a market cap of $117.93 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 34% margin of safety at $47.97. The stock price has been as high as $58.37 and as low as $44.28 in the last 52 weeks. It is currently 17.82% below its 52-week high and 8.35% above its 52-week low. The price-earnings ratio is 19.53.

With 0.79% of outstanding shares, Simons is the company's largest guru shareholder, followed by Ken Fisher (Trades, Portfolio) with 0.56%, Gayner with 0.04% and Jeremy Grantham (Trades, Portfolio) with 0.03%.

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