6 Companies Growing Their Book Value

Brookfield Asset Management tops the list

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Oct 15, 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 Brookfield Asset Management Inc. Class A (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 8.8.

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The asset management company has a $40 billion market cap.

According to the discounted cash flow calculator, the stock is undervalued and is trading with a 19% margin of safety at $41.8. The stock price has been as high as $45.04 and as low as $37.22 in the last 52 weeks. As of Monday, it was 7.15% below its 52-week high and 12.36% above its 52-week low. The price-earnings ratio is 15.79.

Lou Simpson (Trades, Portfolio) is the largest guru shareholder of the company with 1.02% of outstanding shares, followed by Tom Gayner (Trades, Portfolio) with 0.65%, Third Avenue Management (Trades, Portfolio) with 0.47% and Glenn Greenberg (Trades, Portfolio) with 0.3%.

The CCL Industries Inc.'s (CCDBF, Financial) BV/S has grown 11% over the past decade. The price-book ratio is 4.1.

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The company, which sells packaging and labeling products, has a market cap of $7.45 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 34% margin of safety at $42.12. The stock price has been as high as $52.1364 and as low as $42.0355 in the last 52 weeks. As of Monday, it was 19.22% below its 52-week high and 0.19% above its 52-week low. The price-earnings ratio is 19.32.

The BV/S of Micron Technology Inc. (MU, Financial) has grown 12% over the last 10 years. The price-book ratio is 1.5 and the price to tangible book value is 1.5.

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The technology company has a $48.68 billion market cap.

According to the DCF calculator, the stock is undervalued and is trading with a 66% margin of safety at $42.47. The stock price has been as high as $64.66 and as low as $37.52 in the last 52 weeks. As of Monday, it was 34.32% below its 52-week high and 13.19% above its 52-week low. The price-earnings ratio is 3.69.

The company’s largest guru shareholder is PRIMECAP Management (Trades, Portfolio) with 5.02% of outstanding shares, followed by David Tepper (Trades, Portfolio) with 3.49%, Donald Smith (Trades, Portfolio) with 0.67% and Pioneer Investments (Trades, Portfolio) with 0.57%.

Novo Nordisk A/S's (NVO, Financial) BV/S has grown 7% over the past decade. The price-book ratio is 13.5 and the price to tangible book value is 14.8.

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The manufacturer of pharmaceutical products has a market cap of $99.49 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 42% margin of safety at $42.53. The stock price has been as high as $58.37 and as low as $41.23 in the last 52 weeks. As of Monday, it was 27.14% below its 52-week high and 3.15% above its 52-week low. The price-earnings ratio is 17.17.

With 0.8% of outstanding shares, Jim Simons (Trades, Portfolio)' Renaissance Technologies is the company's largest guru shareholder, followed by Ken Fisher (Trades, Portfolio) with 0.56% and Jeremy Grantham (Trades, Portfolio) with 0.03%.

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 company, which operates discount retail stores, has a market cap of $1.71 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 10% margin of safety at $42.68. The stock price has been as high as $64.42 and as low as $36.20 in the last 52 weeks. As of Monday, it was 33.73% below its 52-week high and 17.93% above its 52-week low. The price-earnings ratio is 11.06.

With 3.48% of outstanding shares, Richard Snow (Trades, Portfolio) is the company's largest guru shareholder, followed by Simons with 1.27%, Lee Ainslie (Trades, Portfolio) with 0.5% and Barrow, Hanley, Mewhinney & Strauss with 0.22%.

British American Tobacco PLC's (BTI, Financial) BV/S has grown 9% over the past decade. The price-book ratio is 1.2.

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The company, which manufactures and sells cigarettes and other tobacco products, has a market cap of $99.25 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 93% margin of safety at $43.27. The stock price has been as high as $71.44 and as low as $42.81 in the last 52 weeks. As of Monday, it was 39.44% below its 52-week high and 1.07% above its 52-week low. The price-earnings ratio is 1.79.

With 0.06% of outstanding shares, Ainslie is the company's largest guru shareholder, followed by Sarah Ketterer (Trades, Portfolio) with 0.03%.

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

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