6 Guru Stocks With a Growing Book Value

Kroger makes the list

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Dec 31, 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 LKQ Corp. (LKQ, Financial) has grown 16% over the last 10 years. The price-book ratio is 1.58.

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The company, which provides alternative and mechanical replacement products, has a $7.62 billion market cap.

According to the discounted cash flow calculator, the stock is undervalued and is trading with a 54% margin of safety at $23.60. The stock price has been as high as $43.86 and as low as $23.14 in the last 52 weeks. As of Monday, it is 45.37% below its 52-week high and 3.54% above its 52-week low. The price-earnings ratio is 13.12.

Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder with 0.34% of outstanding shares, followed by Steven Cohen (Trades, Portfolio)’s Point72 Asset Management with 0.23% and Chuck Royce (Trades, Portfolio) with 0.11%.

Central Pattana PCL's (CPPBY, Financial) BV/S has grown 17% over the past decade. The price-book ratio is 5.47 and the price to tangible book value is 6.1.

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The company, which develops shopping centers, has a market cap of $10.3 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 11% margin of safety at $24.25.

PRA Group Inc.'s (PRAA, Financial) BV/S has grown 16% over the past decade. The price-book ratio and price to tangible book value are both 1.0.

The company, which acquires and processes nonperforming loans, has a market cap of $1.11 billion.

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According to the DCF calculator, the stock is undervalued and is trading with a 59% margin of safety at $24.4. The stock price has been as high as $43.75 and as low as $22.62 in the last 52 weeks. As of Monday, it is 43.82% below its 52-week high and 8.66% above its 52-week low. The price-earnings ratio is 8.14

With 3.32% of outstanding shares, Barrow, Hanley, Mewhinney & Strauss is the company's largest guru shareholder, followed by Mariko Gordon (Trades, Portfolio)’s Daruma Capital Management with 1.97% and Lee Ainslie (Trades, Portfolio)’s Maverick Capital with 0.44%.

The BV/S of Clearwater Paper Corp. (CLW, Financial) has grown 12% over the last 10 years. The price-book ratio is 0.63 and the price to tangible book value is 0.6.

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The manufacturer of tissue and paperboard products has a market cap of $404.61 million.

According to the DCF calculator, the stock is undervalued and is trading with a 70% margin of safety at $24.08. The stock price has been as high as $50.60 and as low as $21.55 in the last 52 weeks. It is currently 51.42% below its 52-week high and 14.06% above its 52-week low. The price-earnings ratio is 3.19.

With 1.25% of outstanding shares, Hotchkis & Wiley is the company's largest guru shareholder.

Flanigan'S Enterprises Inc.'s (BDL, Financial) BV/S has grown 11% over the past decade. The price-book ratio and the price to tangible book value are 1.4.

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The company, which operates a chain of small cocktail lounges and packaged liquor stores, has a market cap of $48.08 million.

According to the DCF calculator, the stock is undervalued and is trading with a 28% margin of safety at $25.87. The stock price has been as high as $29.0 and as low as $20.60 in the last 52 weeks. As of Monday, it is 10.79% below its 52-week high and 25.58% above its 52-week low. The price-earnings ratio is 13.13.

With 2.76% of outstanding shares, Jim Simons (Trades, Portfolio)’ Renaissance Technologies is the company's largest guru shareholder.

The BV/S of The Kroger Co. (KR, Financial) has grown 9% over the last 10 years. The price-book ratio is 2.84 and the price to tangible book value is 2.9.

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The grocery store operator has a $22 billion market cap.

According to the DCF calculator, the stock is undervalued and is trading with a 78% margin of safety at $27.58. The stock price has been as high as $32.74 and as low as $22.85 in the last 52 weeks. As of Monday, it is 15.76% below its 52-week high and 20.70% above its 52-week low. The price-earnings ratio is 6.38.

Pioneer Investments is the company's largest guru shareholder with 0.39% of outstanding shares, followed by Smead Capital Management, Inc. (Trades, Portfolio) with 0.28% and Joel Greenblatt (Trades, Portfolio)’s Gotham Asset Management with 0.12%.

Disclosure: I do not own any stocks mentioned.

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