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 $5.8 billion, Berry Global Group Inc. (BERY, Financial) is trading with a price-earnings ratio of 12.64, a price-sales ratio of 0.76 and a forward price-earnings ratio of 11.39. According to the discounted cash flow calculator, the stock has a fair value of $51.33 while trading at $43. The stock price has fallen 26% over the last 12 months and is currently 28.71% below its 52-week high and 3.80% above its 52-week low.
GuruFocus gives the manufacturer of plastic packaging products a profitability and growth rating of 7 out of 10. The return on equity of 41.73% and return on assets of 5.43% are outperforming 60% of companies in the Global Packaging and Containers industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.06 is below the industry median of 0.57.
The company’s largest guru shareholder is Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.23% of outstanding shares, followed by Steven Cohen (Trades, Portfolio) with 0.13%.
With a $5.52 billion market cap, Buckeye Partners LP (BPL, Financial) is trading with a price-earnings ratio of 11.82, a price-sales ratio of 1.31 and a forward price-earnings ratio of 11.33. According to the DCF calculator, the stock has a fair value of $63.64 while trading at $35. The stock price has fallen 32% over the last 12 months and is currently 37.10% below its 52-week high and 12.30% above its 52-week low.
GuruFocus gives the midstream oil and gas company a profitability and growth rating of 5 out of 10. The return on equity of 9.64% and return on assets of 6.41% are outperforming 63% of companies in the Global Oil and Gas Midstream industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.47 is above the industry median of 0.42.
Simons is the company’s largest shareholder among the gurus with 0.21% of outstanding shares, followed by T Boone Pickens (Trades, Portfolio) with 0.09%.
With a market cap of $169.47 billion, Toyota Motor Corp. (TM, Financial) is trading with a price-earnings ratio of 7.80, a price-sales ratio of 0.66 and a forward price-earnings ratio of 8.38. According to the DCF calculator, the stock has a fair value of $165.20 while trading at $117. The stock price was fairly stable over the last 12 months and is currently 16.28% below its 52-week high and 2.69% above its 52-week low.
GuruFocus gives the company, which is one of the world's largest automakers, a profitability and growth rating of 7 out of 10. The return on equity of 13.61% and return on assets of 5.03% are outperforming 58% of companies in the Global Auto Manufacturers industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.27 is below the industry median of 0.53.
The company’s largest shareholder among the gurus is Simons with 0.03% of outstanding shares, followed by NWQ Managers (Trades, Portfolio) with 0.03% and Charles Brandes (Trades, Portfolio) with 0.01%.
Loews Corp. (L, Financial) has a market cap of $14.87 billion; the stock is trading with a price-earnings ratio of 13.45, a price-sales ratio of 1.09 and a forward price-earnings ratio of 12.25. According to the DCF calculator, the stock has a fair value of $37.46 while trading at $47. The stock price was fairly stable over the last 12 months and is currently 12.19% below its 52-week high and 3.38% above its 52-week low.
GuruFocus gives the property and casualty insurance company a profitability and growth rating of 3 out of 10. The return on equity of 6.14% and return on assets of 1.45% are underperforming 61% of companies in the Global Insurance - Property and Casualty industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.04 is above the industry median of 2.82.
Diamond Hill Capital (Trades, Portfolio) is the company’s largest guru shareholder with 1.82% of outstanding shares, followed by the T Rowe Price Equity Income Fund (Trades, Portfolio) with 1.47%, Chris Davis (Trades, Portfolio) with 1.43% and Barrow, Hanley, Mewhinney & Strauss with 0.99%.
Berkshire Hathaway Inc. (BRK.A, Financial) has a market cap of $517.79 billion. It is trading with a price-earnings ratio of 10.90, a price-sales ratio of 2.17 and a forward price-earnings ratio of 17.57. According to the DCF calculator, the stock has a fair value of $639,444 while trading at $312,000. The stock price has risen 12% over a 12-month period and is currently 6.30% below its 52-week high and 16.47% above its 52-week low.
GuruFocus gives the insurance conglomerate a profitability and growth rating of 5 out of 10. The return on equity of 14.28% and return on assets of 6.86% are outperforming 66% of companies in the Global Insurance - Diversified industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.67 is below the industry median of 10,000.
The company’s largest shareholder among the gurus is Warren Buffett (Trades, Portfolio) with 16.5% of outstanding shares, followed by Tom Russo (Trades, Portfolio) with 0.28%, Davis with 0.24%, Ruane Cunniff (Trades, Portfolio) with 0.18% and First Eagle Investment (Trades, Portfolio) with 0.1%.
Ryder System Inc. (R, Financial) has a market cap of $3.44 billion; the stock is trading with a price-earnings ratio of 4.40, a price-sales ratio of 0.46 and a forward price-earnings ratio of 10.40. According to the DCF calculator, the stock has a fair value of $236.72 while trading at $65. The stock price has fallen 16% over the last 12 months and is currently 24.22% below its 52-week high and 4.19% above its 52-week low.
GuruFocus gives the company, which is engaged in transportation and supply chain activities, a profitability and growth rating of 7 out of 10. The return on equity of 30.33% and return on assets of 6.72% are outperforming 75% of companies in the Global Rental and Leasing Services industry. Its financial strength is rated 4 out of 10. The cash-debt of 0.01 is below the industry median of 0.66.
Richard Pzena (Trades, Portfolio) is the company’s largest guru shareholder with 3.93% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 2.74% and Simons with 0.18%.
Disclosure: I do not own any stocks mentioned in this article.
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