5 Undervalued Companies Growing Earnings

InterDigital tops the list

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Oct 11, 2018
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Companies growing their earnings per share are often good investments because they can return a solid profit to investors. According to the discounted cash flow calculator, the following undervalued companies have grown their earnings over a five-year period.

The earnings per share of InterDigital Inc. (IDCC, Financial) have grown 18% annually over the last five years.

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The price-earnings ratio is 20.23. The stock price has been as high as $85.85 and as low as $69.32 in the last 52 weeks; it is currently 15.09% below its 52-week high and 5.16% above its 52-week low.

The company, which develops wireless communications technologies, has a market cap of $2.54 billion and an enterprise value of $1.74 billion.

The company’s largest shareholder among the gurus is First Pacific Advisors (Trades, Portfolio) with 1.75% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 1.2% and the FPA Capital Fund (Trades, Portfolio) with 0.68%.

Industrias Bachoco SAB de CV's (IBA, Financial) earnings per share have grown 19% per year over the last five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 16% margin of safety at $50.85 per share. The price-earnings ratio is 8.78. The stock price has been as high as $64.98 and as low as $50.62 in the last 52 weeks; it is currently 21.75% below its 52-week high and 0.45% above its 52-week low.

The poultry processing company has a market cap of $2.58 billion and an enterprise value of $1.84 billion.

With 1.12% of outstanding shares, Simons is the company's largest guru shareholder, followed by Chuck Royce (Trades, Portfolio) with 0.43%.

The earnings per share of Silgan Holdings Inc. (SLGN, Financial) have grown 11% per year over the last five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 31% margin of safety at $26.59 per share. The price-earnings ratio is 9.36. The stock price has been as high as $31.05 and as low as $26.18 in the last 52 weeks; it is currently 14.36% below its 52-week high and 1.57% above its 52-week low.

The company, which supplies rigid packaging for consumer goods products, has a market cap of $2.94 billion and an enterprise value of $5.72 billion.

The company’s largest guru shareholder is Simons with 0.34% of outstanding shares, followed by Hotchkis & Wiley with 0.09%, Joel Greenblatt (Trades, Portfolio) with 0.02% and Murray Stahl (Trades, Portfolio) with 0.01%.

Freenet AG's (FRTAF, Financial) earnings per share have grown 7% per year over the last five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 65% margin of safety at $23.8 per share. The price-earnings ratio is 7.87.

The telecommunications company has a market cap of $2.95 billion and an enterprise value of $4.4 billion.

The earnings per share of Grupo Aeroportuario del Centro Norte (OMAB, Financial) have grown 20% per year over the last five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 17% margin of safety at $53 per share. The price-earnings ratio is 22.66. The stock price has been as high as $58.10 and as low as $37.45 in the last 52 weeks; it is currently 8.14% below its 52-week high and 42.51% above its 52-week low.

The company, which operates airports in Mexico, has a market cap of $3 billion and an enterprise value of $3.13. billion.

With 1.05% of outstanding shares, Simons is the company's largest guru shareholder, followed by Jeremy Grantham (Trades, Portfolio) with 0.06%.

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

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