6 Predictable Stocks With a Margin of Safety

McGrath on the list

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Oct 28, 2018
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According to the GuruFocus All-in-One Screener, the following companies have high business predictability ratings and a wide margin of safety.

Turk Hava Yollari AO (TKHVF)

The company has a 3.5-star out of five business predictability rating and, according to the discounted cash flow calculator, a 46% margin of safety at $2.75 per share.

The provider of passenger and cargo air transportation services has a market cap of $3.82 billion. Over the last five years, its revenue has increased 2.80%.

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The stock has grown 65% over the last 12 months and is currently trading with a price-earnings ratio of 5.68 and a price-book ratio of 0.69.

McGrath RentCorp. (MGRC)

The company has a five-star business predictability rating and, according to the DCF calculator, a 41% margin of safety at $46.72 per share.

The company, which provides modular building & portable storage solutions, has a market cap of $1.13 billion. Over the last five years, its revenue has increased 5.80% and its earnings per share have grown 19.10%.

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The stock has increased 3% over the last 12 months and is currently trading with a price-earnings ratio of 6.82 and a price-book ratio of 2.11. The price has been as high as $68.79 and as low as $42.98 in the last 52 weeks. As of Saturday, it is 32.08% below its 52-week high and 8.70% above its 52-week low.

With 2.87% of outstanding shares, Jim Simons (Trades, Portfolio) is the company's largest guru shareholder, followed by Chuck Royce (Trades, Portfolio) with 1.12%, Barrow, Hanley, Mewhinney & Strauss with 0.13%, Mario Gabelli (Trades, Portfolio) with 0.11% and Paul Tudor Jones (Trades, Portfolio) with 0.06%.

Betsson AB Class B (BSTBF)

The company has a four-star business predictability rating and, according to the DCF calculator, a 45% margin of safety at $7.63 per share.

The provider of online gambling activities has a $1.05 billion market cap. Over the last five years, its revenue has grown 15% and its earnings per share have grown 7.60%.

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The stock fell 10% over the last 12 months; it is currently trading with a price-earnings ratio of 11.88 and a price-book ratio of 2.56. The price has been as high as $9.10 and as low as $5.95 in the last 52 weeks. It is currently 16.15% below its 52-week high and 28.24% above its 52-week low.

Silgan Holdings Inc. (SLGN)

The company has a five-star business predictability rating and, according to the DCF calculator, has a 39% margin of safety at $23.44 per share.

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The company which manufactures rigid packaging for shelf-stable food and other consumer goods products, has a market cap of $2.59 billion. Over the last five years, its revenue has grown 5.70% and its earnings per share have climbed 10.90%.

The stock fell 20% over the last 12 months; it is currently trading with a price-earnings ratio of 8.24 and a price-book ratio of 2.87. The price has been as high as $31.05 and as low as $23.40 in the last 52 weeks. It is currently 24.51% below its 52-week high and 0.19% above its 52-week low.

With 0.34% of outstanding shares, Simons is the company's largest guru shareholder, followed by Steven Cohen (Trades, Portfolio) with 0.27%, HOTCHKIS & WILEY with 0.09% and Joel Greenblatt (Trades, Portfolio) with 0.02%.

Grupo Aeroportuario del Sureste (ASR)

The company has a four-star business predictability rating and, according to the DCF calculator, a 43% margin of safety at $169.94 per share.

The company, has concessions granted by the government and operates nine airports in southeast Mexico. It has a market cap of $5.11 billion. Over the last five years, its revenue has grown 21% and its earnings per share have increased 21.40%.

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The stock has fallen 6% over the last 12 months; it is currently trading with a price-earnings ratio of 17.31 and a price-book ratio of 3.65. The price has been as high as $212.70 and as low as $152.40 in the last 52 weeks. It is currently 20.10% below its 52-week high and 11.51% above its 52-week low.

The company's largest guru shareholder is Columbia Wanger (Trades, Portfolio) with 1.45% of outstanding shares followed by Frank Sands (Trades, Portfolio) with 1%, Simons with 0.12% and Jeremy Grantham (Trades, Portfolio) with 0.07%.

Old Dominion Freight Lines Inc. (ODFL)

The company has a five-star business predictability rating and, according to the DCF calculator, has a 37% margin of safety at $124.72 per share.

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It is a less-than-truckload (LTL) union-free company, has a market cap of $10.23 billion. Over the last five years, its revenue has grown 10.20% and its earnings per share have climbed 20.24%.

The stock was almost stable over the last 12 months; it is currently trading with a price-earnings ratio of 17.94 and a price-book ratio of 4.11. The price has been as high as $170.22 and as low as $111.41 in the last 52 weeks. It is currently 26.73% below its 52-week high and 11.95% above its 52-week low.

With 0.65% of outstanding shares, Columbia Wanger (Trades, Portfolio) is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.3%, PRIMECAP Management (Trades, Portfolio) 0.25%, Greenblatt with 0.08% and Royce with 0.04%.

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