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Tiziano Frateschi
Tiziano Frateschi
Articles (1688)  | Author's Website |

6 Stocks With Low Price-Earnings Ratios

Lennar tops the list

October 09, 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 $14.69 billion, Lennar Corp. Class B (NYSE:LEN.B) is trading with a price-earnings ratio of 11.04, a price-sales ratio of 0.80 and a forward price-earnings ratio of 5.52. According to the discounted cash flow calculator, the stock has a fair value of $44.22 while trading at $38. The stock price has fallen 18% over the last 12 months and is currently 35.19% below its 52-week high and 4.45% above its 52-week low.

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GuruFocus gives the home builder a profitability and growth rating of 8 out of 10. The return on equity of 12.20% and return on assets of 5.56% are outperforming 66% of companies in the Global Residential Construction industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.48 is below the industry median of 0.46.

The company’s largest guru shareholder is Mario Gabelli (Trades, Portfolio) with 0.49% of outstanding shares, followed by Third Avenue Management (Trades, Portfolio) with 0.16% and Jim Simons (Trades, Portfolio) with 0.07%.

With a $4.21 billion market cap, Olin Corp. (NYSE:OLN) is trading with a price-earnings ratio of 6.86, a price-sales ratio of 0.70 and a forward price-earnings ratio of 9.97. According to the DCF calculator, the stock has a fair value of $39.38 while trading at $25. The stock price has fallen 30% over the last 12 months and is currently 35.14% below its 52-week high and 3.24% above its 52-week low.

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GuruFocus gives the chemical and ammunition manufacturer a profitability and growth rating of 8 out of 10. The return on equity of 24.21% and return on assets of 6.80% are outperforming 63% of companies in the Global Specialty Chemicals industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.04 is above the industry median of 0.72.

Andreas Halvorsen (Trades, Portfolio) is the company’s largest shareholder among the gurus with 2.8% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 0.88% and Steven Cohen (Trades, Portfolio) with 0.51%.

With a market cap of $3.77 billion, AU Optronics Corp. (NYSE:AUO) is trading with a price-earnings ratio of 4.37, a price-sales ratio of 0.38 and a forward price-earnings ratio of 24.21. According to the DCF calculator, the stock has a fair value of $10.7 while trading at $4.05. The stock price was fairly stable over the last 12 months and is currently 24.30% below its 52-week high and 6.02% above its 52-week low.

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GuruFocus gives the company, which develops thin film transistor liquid crystal displays (TFT-LCDs), a profitability and growth rating of 4 out of 10. The return on equity of 14.33% and return on assets of 6.61% are outperforming 72% of companies in the Global Electronic Components industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 1.36 is above the industry median of 1.32.

The company’s largest shareholder among the gurus is Simons with 1.2% of outstanding shares, followed by Joel Greenblatt (Trades, Portfolio) with 0.01%.

Eni SpA ADR (NYSE:E) has a market cap of $68.18 billion; the stock is trading with a price-earnings ratio of 12.40, a price-sales ratio of 0.79 and a forward price-earnings ratio of 9.19. According to the DCF calculator, the stock has a fair value of $32.6 while trading at $36.61. The stock price has risen 12% over the last 12 months and is currently 8.82% below its 52-week high and 15.93% above its 52-week low.

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GuruFocus gives the Italian oil and gas company a profitability and growth rating of 6 out of 10. The return on equity of 9.48% and return on assets of 3.95% are underperforming 56% of companies in the Global Oil and Gas Integrated industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.58 is above the industry median of 0.34.

Charles Brandes (Trades, Portfolio) is the company’s largest guru shareholder with 0.11% of outstanding shares.

LCI Industries Inc. (NYSE:LCII) has a market cap of $2.02 billion. It is trading with a price-earnings ratio of 14.25, a price-sales ratio of 0.87 and a forward price-earnings ratio of 10.55. According to the DCF calculator, the stock has a fair value of $60.57 while trading at $80. The stock price has fallen 32% over a 12-month period and is currently 39.50% below its 52-week high and 0.83% above its 52-week low.

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GuruFocus gives the supplier of components for manufacturers of recreational vehicles and related industries, a profitability and growth rating of 8 out of 10. The return on equity of 21.77% and return on assets of 13.84% are outperforming 86% of companies in the Global Recreational Vehicles industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 0.08 is below the industry median of 0.53.

The company’s largest shareholder among the gurus is Chuck Royce (Trades, Portfolio) with 1.14% of outstanding shares, followed by Steven Cohen (Trades, Portfolio) with 0.32%.

Royal Bank of Canada (NYSE:RY) has a market cap of $114.45 billion; the stock is trading with a price-earnings ratio of 12.63, a price-sales ratio of 3.49 and a forward price-earnings ratio of 11.42. According to the DCF calculator, the stock has a fair value of $82.09 while trading at $79. The stock price has not changed over the last 12 months and is currently 9.14% below its 52-week high and 7.06% above its 52-week low.

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GuruFocus gives the Canadian bank a profitability and growth rating of 4 out of 10. The return on equity of 15.72% and return on assets of 0.96% are outperforming 55% of companies in the Global Banks - Global industry. Its financial strength is rated 5 out of 10.

Simons is the company’s largest guru shareholder with 0.11% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 0.1% and Ray Dalio (Trades, Portfolio) with 0.04%.

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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aboer52-41 Downies
aboer52-29 DN Prof▼5Pred▼1Pi▼5J
aboer52-36 Bottom 20% of industries
aboer52-165 Bad ROE
aboer52-225 dn Op Mgn < 20th percenti
aboer52-451 dn Warn><1 Finan<6 Profit
aboer52-88 Profit<=5 Warnings >=3
aboer52-356 DN <6<6
aboer52-178 DN <6<6 Benish>-5 AZ<3
aboer52-104 DN Piot<=3
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