6 Stocks With Margin of Safety and Growing Book Value

EBIX makes the list

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Dec 14, 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 last 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 Berkeley Group Holdings PLC (BKGFF) has grown 13% over the last 10 years. The price-book ratio is 1.7 and the price to tangible book value is 1.6.

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The residential construction company has a $5.49 billion market cap.

According to the discounted cash flow calculator, the stock is undervalued and is trading with a 77% margin of safety at $42.5. The price-earnings ratio is 6.76.

Aaron's Inc.'s (AAN) BV/S has grown 11% over the past decade. The price-book ratio is 1.7 and the price to tangible book value is 3.6.

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The company, which is engaged in the retailing of furniture, consumer electronics, computers, appliances and household accessories, has a market cap of $2.99 billion.

According to the discounted cash flow calculator, the stock is undervalued and is trading with a 32% margin of safety at $43.65. The stock price has been as high as $56.00 and as low as $35.62 in the last 52 weeks. As of Thursday, it is 22.05% below its 52-week high and 122.54% above its 52-week low. The price-earnings ratio is 10.01.

The company’s largest guru shareholder is Diamond Hill Capital (Trades, Portfolio) with 1.59% of outstanding shares followed by Mario Gabelli (Trades, Portfolio) with 0.74%, First Pacific Advisors (Trades, Portfolio) with 0.49% and FPA Capital Fund (Trades, Portfolio) with 0.19%.

The BV/S of Ebix Inc. (EBIX) has grown 22% over the last 10 years. The price-book ratio is 2.9.

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The provider of software solutions for the e-commerce, has a $1.4 billion market cap.

According to the DCF calculator, the stock is undervalued and is trading with a 48% margin of safety at $44.9. The stock price has been as high as $89.10 and as low as $44.20 in the last 52 weeks. As of Thursday it is 49.61% below its 52-week high and 1.58% above its 52-week low. The price-earnings ratio is 12.80.

Chuck Royce (Trades, Portfolio) is the company's largest guru shareholder with 0.15% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.03% and Paul Tudor Jones (Trades, Portfolio) with 0.03%.

Novo Nordisk A/S ADR's (NVO) BV/S has grown 7% over the past decade. The price-book ratio is 14.8 and the price to tangible book value is 16.6.

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The company which develops and manufactures pharmaceutical products, has a market cap of $107.89 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 37% margin of safety at $45.2. The stock price has been as high as $58.37 and as low as $41.23 in the last 52 weeks. As of Thursday, it is 22.56% below its 52-week high and 9.63% above its 52-week low. The price-earnings ratio is 18.73.

With 0.82% of outstanding shares, Jim Simons' (Trades, Portfolio) Renaissance Technologies is the company's largest guru shareholder, followed by Ken Fisher (Trades, Portfolio) with 0.57% and Tom Gayner (Trades, Portfolio) with 0.04%.

The BV/S of Cheesecake Factory Inc. (CAKE) has grown 6% over the last 10 years. The price-book ratio is 3.4 and the price to tangible book value is 3.5.

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The company, which owns and operates a large number of restaurants in the U.S., has a market cap of $2.06 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 26% margin of safety at $45.41. The stock price has been as high as $60.19 and as low as $43.26 in the last 52 weeks. It is currently 24.56% below its 52-week high and 4.97% above its 52-week low. The price-earnings ratio is 15.14.

With 2.42% of outstanding shares, Richard Snow (Trades, Portfolio) is the company's largest guru shareholder followed by Ron Baron (Trades, Portfolio) with 1.76%.

TJX Companies Inc.'s (TJX) BV/S has grown 12% over the past decade. The price-book ratio is 10.8 and the price to tangible book value is 11.0.

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The retailer of apparel and home fashions has a market cap of $56.39 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 18% margin of safety at $45.73. The stock price has been as high as $56.64 and as low as $36.41 in the last 52 weeks. As of Thursday, it is 19.26% below its 52-week high and 25.60% above its 52-week low. The price-earnings ratio is 18.67.

With 1.32% of outstanding shares, PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder, followed by Diamond Hill Capital (Trades, Portfolio) with 0.56%, Ruane Cunniff (Trades, Portfolio) with 0.49% and Jeremy Grantham (Trades, Portfolio) with 0.42%.

Disclosure: I do not own any stocks mentioned.