6 Low Price-Sales Stocks

Berkshire Hills Bancorp, General Mills make the list

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Sep 24, 2018
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According to the GuruFocus All-in-One Screener, the following companies with market caps over $5 billion look cheap since they are trading with low price-sales ratios.

HNI Corp. (HNI, Financial) shares are trading around $44 with a price-sales ratio of 0.87, a price-earnings ratio of 21.34 and a forward price-earnings ratio of 13.44. The company has a market cap of $1.94 billion and the stock price has risen at an annualized rate of 5.3% over the last 10 years.

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The company manufactures office furniture. The discounted cash flow calculator gives the stock a fair value of $22.26, suggesting it is overpriced by 99%. The Peter Lynch earnings line also suggests the stock is overpriced, giving a fair value of $22.95.

Chuck Royce (Trades, Portfolio) is the company's largest shareholder among the gurus with 0.76% of outstanding shares, followed by NWQ Managers (Trades, Portfolio) with 0.61% and Jim Simons (Trades, Portfolio) with 0.06%.

Berkshire Hills Bancorp Inc. (BHLB, Financial) shares are trading around $42 with a price-sales ratio of 4.11, a forward price-earnings ratio of 13.79 and a price-earnings ratio of 24.40. The bank holding company has a market cap of $1.93 billion. The stock price has risen at an annualized rate of 5.3% over the past decade.

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The discounted cash flow calculator gives the company a fair value of $18.3, suggesting it is overpriced by 132%. The Peter Lynch earnings line gives the stock a fair value of $25.65.

The company's largest guru shareholder is Simons with 1.7% of outstanding shares, followed by Mario Gabelli (Trades, Portfolio) with 0.02%.

Hawaiian Electric Industries Inc. (HE, Financial) shares are trading around $35.46 with a price-sales ratio of 1.42, a price-earnings ratio of 21.61 and a forward price-earnings ratio of 17.39. The company has a market cap of $3.86 billion and the stock price has risen at an annualized rate of 5.3% over the last 10 years.

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The company manufactures printed circuit boards. The discounted cash flow calculator gives the stock a fair value of $19.68, suggesting it is overpriced by 80%. The Peter Lynch earnings line gives the stock a fair value of $23.70.

With 0.63% of outstanding shares, Simons is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.05%.

General Mills Inc. (GIS, Financial) shares are trading around $44 with a price-sales ratio of 1.64, a price-earnings ratio of 12.27 and a forward price-earnings ratio of 14.62. The company has a market cap of $26.59 billion and the stock price has risen at an annualized rate of 5.3% over the past decade.

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The marketer of branded consumer foods has a fair value of $38.53 according to the discounted cash flow calculator, suggesting it is overpriced by 16%. The Peter Lynch earnings line gives the stock a fair value of $54.60

The largest guru shareholder of the company is Mairs and Power (Trades, Portfolio) with 0.52% of outstanding shares, followed by Gabelli with 0.27% and Joel Greenblatt (Trades, Portfolio) with 0.01%.

SPX Corp. (SPXC, Financial) shares are trading around $34 with a price-sales ratio of 1.06, a price-earnings ratio of 13.27 and a forward price-earnings ratio of 12.50. The company has a market cap of $1.46 billion. The stock price has risen at an annualized rate of 5.3% over the last 10 years.

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The discounted cash flow calculator gives the supplier of infrastructure equipment a fair value of $27.61, suggesting it is overpriced by 26%. The Peter Lynch earnings line suggests the stock is fairly priced, giving it a fair value of $29.25.

The company's largest guru shareholder is Pioneer Investments with 1.48% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 0.13%.

EchoStar Corp. (SATS, Financial) shares are trading around $46.20 with a price-sales ratio of 2.27 and a price-earnings ratio of 11.08. The company has a market cap of $4.52 billion. The stock price has risen at an annualized rate of 5.3% over the past decade.

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The broadband technology and video delivery solutions provider has a fair value of $44.41 according to the discounted cash flow calculator, suggesting it is overpriced by 6%. The Peter Lynch earnings line gives the stock a fair value of $51.30.

The largest shareholder of the company among the gurus is Simons with 3.31% of outstanding shares, followed by Gabelli with 0.58% and Murray Stahl (Trades, Portfolio) with 0.5%.

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