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Tiziano Frateschi
Tiziano Frateschi
Articles (2015)  | Author's Website |

6 Stocks With Low Price-Earnings Ratios

ManpowerGroup makes the list

The following stocks have low price-earnings ratios and have been bought by gurus. While some of them are great investments, others need to be checked again, according to the discounted cash flow calculator.

With a market cap of $1.17 billion, Patrick Industries Inc. (NASDAQ:PATK) is trading with a price-earnings ratio of 10.28 and a price-book ratio of 2.89. According to the DCF calculator, the stock has a fair value of $52.65 while trading at $49.19. Shares have fallen 12% over the last 12 months and are now trading 27.13% below the 52-week high and 80.05% above the 52-week low.

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GuruFocus gave the manufacturer of building products and materials a profitability and growth rating of 7 out of 10. The return on equity of 29.91% and return on assets of 10.82% are outperforming 84% of companies in the Global Home Furnishings and Fixtures industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.01 is below the industry median of 1.05.

The company’s largest guru shareholder is Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.98% of outstanding shares, followed by Chuck Royce (Trades, Portfolio) with 0.14% and Paul Tudor Jones (Trades, Portfolio) with 0.06%.

With a $81.29 million market cap, Perion Network Ltd. (NASDAQ:PERI) is trading with a price-earnings ratio of 9.99 and a price-book ratio of 0.55. According to the DCF calculator, the stock has a fair value of $3.32 while trading at $3.11. Shares have risen 36% over the last 12 months. They are currently trading 23.21% below the 52-week high and 46.01% above the 52-week low.

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GuruFocus gave the provider of digital advertising solutions a profitability and growth rating of 5 out of 10. The return on equity of 5.72% and return on assets of 3.17% are underperforming 57% of companies in the Global Internet Content and Information industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 1.07 is below the industry median 7.46.

Simons’ firm is the company’s largest guru shareholder with 4.23% of outstanding shares.

With a market cap of $603.4 million, Forum Energy Technologies Inc. (NYSE:FET) is trading with a price-earnings ratio of 9.98 and a price-book ratio of 0.58. According to the DCF calculator, the stock has a fair value of $5.89 while trading at $5.40. Shares have tumbled 54% over the last 12 months and are currently trading 65.74% below the 52-week high and 56.41% above the 52-week low.

GuruFocus rated the oil and gas company’s profitability and growth 4 out of 10. The return on equity of -27.81% and return on assets of -17.81% are underperforming 57% of companies in the Global Oil and Gas Equipment and Services industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.09 is below industry median of 0.49.

The company’s largest guru shareholder is Steven Cohen (Trades, Portfolio) with 1.92% of outstanding shares, followed by Simons’ firm with 0.82%, Royce with 0.40% and Mario Gabelli (Trades, Portfolio) with 0.04%.

Assured Guaranty Ltd. (NYSE:AGO) has a market cap of $4.77 billion and is trading with a price-earnings ratio of 9.98 and a price-book ratio of 0.75. According to the DCF calculator, the stock has a fair value of $46.41 while trading at $132.38. Shares have risen 25% over the last 12 months and are trading 0.13% below the 52-week high and 34.64% above the 52-week low.

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GuruFocus gave the insurance provider a profitability and growth rating of 3 out of 10. The return on equity of 7.77% and return on assets of 3.73% are outperforming 65% of companies in the Global Insurance - Specialty industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.08 is below the industry median of 5.79.

With 1.22% of outstanding shares, Kahn Brothers (Trades, Portfolio) is the company’s largest guru shareholder, followed by Arnold Schneider (Trades, Portfolio) with 0.60%, Pioneer Investments (Trades, Portfolio) with 0.27% and Diamond Hill Capital (Trades, Portfolio) with 0.13%.

ManpowerGroup Inc. (NYSE:MAN) has a market cap of $5.15 billion. Its shares are trading with a price-earnings ratio of 9.97 and a price-book ratio of 2.02. According to the DCF calculator, the stock has a fair value of $91.93 while trading at $85.65. Shares have fallen 27% over a 12-month period and are currently trading 28.43% below the 52-week high and 39.11% above the 52-week low.

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The company, which operates in the fragmented global staffing industry, has a GuruFocus profitability and growth rating of 6 out of 10. While the return on equity of 20.25% is outperforming the sector, the return on assets of 6.35% is underperforming 52% of companies in the Global Staffing and Outsourcing Services industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.55 is below the industry median of 3.19.

The company’s largest guru shareholder is Hotchkis & Wiley with 1.63% of outstanding shares, followed by Royce with 0.95%, Joel Greenblatt (Trades, Portfolio) with 0.38% and Pioneer Investments (Trades, Portfolio) with 0.15%.

WSFS Financial Corp. (NASDAQ:WSFS) has a market cap of $2.38 billion; the stock is trading with a price-earnings ratio of 9.98 and a price-book ratio of 1.59. According to the DCF calculator, the stock has a fair value of $44.73 while trading at about $41.71. Shares have tumbled 16% over the last 12 months and are currently trading 27.71% below the 52-week high and 23.59% above the 52-week low.

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GuruFocus rated the savings and loan holding company’s profitability and growth 4 out of 10. The return on equity of 17.46% and return on assets of 1.90% are outperforming 85% of companies in the Global Banks - Regional - U.S. industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 1.26 is below the industry median of 1.43.

With 2.33% of outstanding shares, Simons’ firm is the company’s largest guru shareholder, followed by Richard Pzena (Trades, Portfolio) with 1.27%.

Disclosure: I do not own any stocks mentioned.

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About the author:

Tiziano Frateschi
You can read about me on www.theextraincome.info, which gives suggestions on position trading.

Visit Tiziano Frateschi's Website


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