5 Cheap Stocks Growing Book Value

Amerco tops the list

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Mar 19, 2019
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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 past 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 Amerco Inc. (UHAL, Financial) has grown 17.20% over the last 10 years. The price-book ratio and the price to tangible book value are both 2.01.

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The company, which provides rental trucks and trailers to household movers, has a $7.43 billion market cap.

According to the discounted cash flow calculator, the stock is undervalued and is trading with a 32% margin of safety at $379. The share price has been as high as $387.95 and as low as $316 in the last 52 weeks. As of Tuesday, the stock was trading 2.28% below its 52-week high and 19.97% above its 52-week low. The price-earnings ratio is 19.50.

David Abrams (Trades, Portfolio) is the company's largest guru shareholder with 2.94% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 2.26%, Hotchkis & Wiley with 1.15% and Robert Bruce (Trades, Portfolio) with 0.90%.

Biogen Inc.’s (BIIB, Financial) BV/S has grown 13.60% over the past decade. The price-book ratio is 4.99 and the price to tangible book value is 15.44.

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The company, which develops therapies for the treatment of neurological diseases, has a market cap of $64.89 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 46% margin of safety at $326. The share price has been as high as $388.67 and as low as $249.17 in the last 52 weeks. As of Tuesday, the stock was trading 15.13% below its 52-week high and 32.39% above its 52-week low. The price-earnings ratio is 15.26.

With 7.48% of outstanding shares, PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder, followed by the Vanguard Health Care Fund (Trades, Portfolio) with 1.88% and Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.52%.

Hingham Institution for Savings' (HIFS, Financial) BV/S has grown 13.70% over the last 10 years. The price-book ratio and the price to tangible book value are both 1.81.

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The bank has a market cap of $384.96 million.

According to the DCF calculator, the stock is undervalued and is trading with a 40% margin of safety at $180.5. The share price has been as high as $229.99 and as low as $180.17 in the last 52 weeks. As of Tuesday, the stock was trading 21.52% below its 52-week high and 0.18% above its 52-week low. The price-earnings ratio is 12.99.

With 1.10% of outstanding shares, Simons’ firm is the company's largest guru shareholder.

The BV/S of Baidu Inc. (BIDU, Financial) has grown 54.10% over the last 10 years. The price-book ratio is 2.52 and the price to tangible book value is 3.04.

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The Chinese internet search engine has a market cap of $59.42 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 49% margin of safety at $170.48. The share price has been as high as $284.22 and as low as $153.78 in the last 52 weeks. The stock is currently trading 40.02% below its 52-week high and 10.86% above its 52-week low. The price-earnings ratio is 14.48.

With 1.51% of outstanding shares, Sarah Ketterer (Trades, Portfolio) is the company's largest guru shareholder, followed by Dodge & Cox with 1.42%, First Pacific Advisors (Trades, Portfolio) with 0.69% and Steven Romick (Trades, Portfolio) with 0.52%.

Cummins Inc.’s (CMI, Financial) BV/S has grown 10.90% over the past decade. The price-book ratio is 3.38 and the price to tangible book value is 4.68.

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The company, which manufactures engines, filtration and power generation products, has a market cap of $24.77 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 23% margin of safety at $161. The share price has been as high as $172.08 and as low as $124.40 in the last 52 weeks. The stock is currently trading 8.53% below its 52-week high and 26.54% above its 52-week low. The price-earnings ratio is 11.94.

Hotchkis & Wiley is the company's largest guru shareholder with 2.19% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 1.61% and Bill Nygren (Trades, Portfolio) with 1.09%.

Disclosure: I do not own any stocks mentioned.

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