6 Stocks With Low Price-Sales Ratios

Sanofi tops the list

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Jan 11, 2019
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According to the GuruFocus All-in-One Screener, the following companies with market caps over $5 billion look cheap since they are trading with low price-sales ratios.

Shares of Sanofi SA (SNY, Financial) are trading around $42.80 with a price-sales ratio of 2.65 and a price-earnings ratio of 27.27. The company, which develops therapeutic solutions, has a market cap of $103.37 billion. The stock has risen at an annualized rate of 6.3% over the last 10 years.

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The discounted cash flow calculator gives the stock a fair value of $16.22, suggesting it is overpriced by 164%. The Peter Lynch earnings line gives the stock a fair value of $25.65.

Dodge & Cox is the company's largest guru shareholder with 2.45% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 0.82%, Ken Fisher (Trades, Portfolio) with 0.63% and Hotchkis & Wiley with 0.24%.

Class A shares of Waddell & Reed Financial Inc. (WDR, Financial) are trading around $17.75 with a price-sales ratio of 1.23 and a price-earnings ratio of 8.65. The asset management company has a market cap of $1.39 billion. The stock has climbed at an annualized rate of 6.3% over the past decade.

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The DCF calculator gives the stock a fair value of $24.29 per share, suggesting it is undervalued with a 27% of margin of safety. The Peter Lynch earnings line gives the stock a fair value of $27.75.

The company's largest guru shareholder is Fisher with 2.28% of outstanding shares, followed by Mario Gabelli (Trades, Portfolio) with 2.07%, Barrow, Hanley, Mewhinney & Strauss with 0.48% and Hotchkis & Wiley with 0.32%.

Shares of The Hain Celestial Group Inc. (HAIN, Financial) are trading around $17.90 with a price-sales ratio of 0.71 and a forward price-earnings ratio of 14.35. The company, which manufactures natural and organic food and beverage products, has a market cap of $1.83 billion. The stock has risen at an annualized rate of 6.3% over the last 10 years.

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The DCF calculator gives the company a fair value of $4.49, suggesting it is overpriced by 291%. The Peter Lynch earnings line gives the stock a fair value of $12.30.

With 1.28% of outstanding shares, Jana Partners (Trades, Portfolio) is the company's largest guru shareholder, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.71%, Gabelli with 0.46% and Richard Snow (Trades, Portfolio) with 0.4%.

MetLife Inc. (MET, Financial) is trading around $42.77 with a price-sales ratio of 0.65 and price-book ratio of 0.82. The life insurance company, which also provides asset management services, has a market cap of $42.21 billion. The stock has risen at an annualized rate of 6.3% over the past decade.

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The DCF calculator gives the stock a fair value of $53.62, suggesting it is undervalued with a 20% of margin of safety. The Peter Lynch earnings line gives the stock a fair value of $75.15.

The company's largest guru shareholder is Dodge & Cox with 4.68% of outstanding shares, followed by Diamond Hill Capital (Trades, Portfolio) with 1.1%, Richard Pzena (Trades, Portfolio) with 0.86% and the T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.68%.

Northwest Natural Holding Co. (NWN, Financial) is trading around $59.32 with a price-sales ratio of 2.38 and a forward price-earnings ratio of 23.26. The natural gas distributor in Oregon, Washington and California has a market cap of $1.71 billion. The stock has risen at an annualized rate of 6.3% over the last 10 years.

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The company's largest guru shareholder is Simons’ firm with 2.41% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.76% and Hotchkis & Wiley with 0.21%.

Synaptics Inc. (SYNA, Financial) shares are trading around $40 with a price-sales ratio of 0.81 and a forward price-earnings ratio of 7.60. The software company, which develops custom human interface solutions, has a market cap of $1.31 billion. The stock has risen at an annualized rate of 6.3% over the past decade.

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With 2.72% of outstanding shares, Fisher is the company's largest guru shareholder, followed by Chuck Royce (Trades, Portfolio) with 1.39%.

Disclosure: I do not own any stocks mentioned.

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