5 Cheap Stocks Growing Book Value

Schlumberger tops the list

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Apr 02, 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 Schlumberger Ltd. (SLB, Financial) has grown 6% over the last 10 years. The price-book ratio is 1.67 and the price to tangible book value is 24.06.

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The company, which provides services to the oil and gas industry, has a $60.39 billion market cap.

According to the discounted cash flow calculator, the stock is overpriced by 165% at $44. The share price has been as high as $75.43 and as low as $34.99 in the last 52 weeks. As of Tuesday, the stock was trading 42.24% below its 52-week high and 24.52% above its 52-week low. The price-earnings ratio is 28.29.

Dodge & Cox is the company's largest guru shareholder with 2.99% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 2.02%, Barrow, Hanley, Mewhinney & Strauss with 1.38% and Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.61%.

PNC Financial Services Group Inc.’s (PNC, Financial) BV/S has grown 6.60% over the past decade. The price-book ratio is 1.17 and the price to tangible book value is 1.53.

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The company, which provides retail, corporate and institutional banking services, has a market cap of $55.64 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 37% margin of safety at $122.66. The share price has been as high as $154.58 and as low as $108.45 in the last 52 weeks. As of Tuesday, the stock was trading 20.65% below its 52-week high and 13.10% above its 52-week low. The price-earnings ratio is 11.44.

With 1.82% of outstanding shares, Warren Buffett (Trades, Portfolio) is the company's largest guru shareholder, followed by the T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.35% and Diamond Hill Capital (Trades, Portfolio) with 0.26%.

Micron Technology Inc.’s (MU, Financial) BV/S has grown 12.10% over the last 10 years. The price-book ratio is 1.35 and the price to tangible book value is 1.43.

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The memory and storage solutions provider has a market cap of $45.74 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 59% margin of safety at $41.33. The share price has been as high as $64.66 and as low as $28.39 in the last 52 weeks. As of Tuesday, the stock was trading 36.08% below its 52-week high and 45.58% above its 52-week low. The price-earnings ratio is 4.43.

With 5.16% of outstanding shares, PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder, followed by David Tepper (Trades, Portfolio) with 1.43% and Donald Smith (Trades, Portfolio) with 0.69%.

The BV/S of Cognizant Technology Solutions Corp. (CTSH, Financial) has grown 19.80% over the last 10 years. The price-book ratio is 3.66 and the price to tangible book value is 6.15.

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The IT services company has a market cap of $41.67 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 6% margin of safety at $72.45. The share price has been as high as $83.35 and as low as $59.47 in the last 52 weeks. The stock is currently trading 13.08% below its 52-week high and 21.83% above its 52-week low. The price-earnings ratio is 20.13.

With 1.32% of outstanding shares, Richard Pzena (Trades, Portfolio) is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.59%, Jeremy Grantham (Trades, Portfolio) with 0.58% and the Matthews Pacific Tiger Fund (Trades, Portfolio) with 0.38%.

The Travelers Companies Inc.’s (TRV, Financial) BV/S has grown 6.80% over the past decade. The price-book ratio is 1.58 and the price to tangible book value is 1.94.

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The insurance company has a market cap of $36.13 billion.

According to the DCF calculator, the stock is overpriced by 17% at $137.16. The share price has been as high as $140.03 and as low as $111.08 in the last 52 weeks. The stock is currently trading 2.05% below its 52-week high and 23.48% above its 52-week low. The price-earnings ratio is 14.80.

Buffett is the company's largest guru shareholder with 2.26% of outstanding shares, followed by Hotchkis & Wiley with 0.85% and First Eagle Investment with 0.82%.

Disclosure: I do not own any stocks mentioned.

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