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Tiziano Frateschi
Tiziano Frateschi
Articles (2014)  | Author's Website |

5 Stocks Trading With Low Price-Earnings Ratios

Wendy's makes the list

April 24, 2019 | About:

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 $1.07 billion, New York Mortgage Trust Inc. (NYMT) is trading with a price-earnings ratio of 9.99 and a price-book ratio of 1.17. According to the DCF calculator, the stock has a fair value of $6.64 while trading at $6.2. Shares have risen 2.82% over the last 12 months and are now trading 5.20% below the 52-week high and 11.11% above the 52-week low.

GuruFocus gave the real estate investment trust a profitability and growth rating of 1 out of 10. While the return on equity of 7.58% is outperforming the sector, the return on assets of 0.82% is underperforming 83% of companies in the REIT - Residential industry. Its financial strength is rated 3 out of 10. The cash-debt ratio of 0.01 is below the industry median of 0.06.

The company’s largest guru shareholder is Jim Simons' (Trades, Portfolio) Renaissance Technologies with 0.21% of outstanding shares.

With a $36.09 million market cap, Unique Fabricating Inc. (UFAB) is trading with a price-earnings ratio of 9.74 and a price-book ratio of 0.72. According to the DCF calculator, the stock has a fair value of $3.96 while trading at $3.69. Shares have fallen 59% over the last 12 months. They are currently trading 61.96% below the 52-week high and 2.00% above the 52-week low.

GuruFocus gave the manufacturer of components in the automotive market, a profitability and growth rating of 5 out of 10. The return on equity of 7.32% and return on assets of 2.94% are outperforming 56% of companies in the Auto Parts industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.03 is below the industry median 0.61.

Chuck Royce (Trades, Portfolio) is the company’s largest guru shareholder with 5.65% of outstanding shares followed by the Simons’ firm with 0.64%.

With a market cap of $4.32 billion, The Wendy's Co. (WEN) is trading with a price-earnings ratio of 9.94 and a price-book ratio of 6.93. According to the DCF calculator, the stock has a fair value of $20.12 while trading at $18.69. Shares have grown 11% over the last 12 months and are currently trading 1.63% below the 52-week high and 24.93% above the 52-week low.

GuruFocus gave the operator of restaurants under the brand name Wendy's a profitability and growth 6 out of 10. The return on equity of 79.37% and return on assets of 10.91% are outperforming 58% of companies in the Restaurants industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.16 is below industry median of 0.68.

The company’s largest guru shareholder is Murray Stahl (Trades, Portfolio)’s Horizon Kinetics with 1.49% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.25%, the Simons’ firm with 0.23% and Paul Tudor Jones (Trades, Portfolio) with 0.06%.

FNB Corp. (FNB) has a market cap of $3.89 billion and is trading with a price-earnings ratio of 10.71 and a price-book ratio of 0.86. According to the DCF calculator, the stock has a fair value of $14.42 while trading at $11.94. Shares have fallen 15.43% over the last 12 months and are trading 21.71% below the 52-week high and 18.82% above the 52-week low.

GuruFocus gave the financial-services company a profitability and growth rating of 4 out of 10. While the return on equity of 8.13% is underperforming the sector, the return on assets of 1.16% is outperforming 59% of companies in the Banks - Regional - US industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.16 is below the industry median of 1.43.

With 3.92% of outstanding shares, Barrow, Hanley, Mewhinney & Strauss is the company’s largest guru shareholder, followed by Richard Snow (Trades, Portfolio) with 1.24%.

CBS Corp. (CBS) has a market cap of $19.14 billion. Its shares are trading with a price-earnings ratio of 9.92 and a price-book ratio of 6.82. According to the DCF calculator, the stock has a fair value of $55.11 while trading at $51.11. Shares have risen 2% over a 12-month period and are currently trading 14.23% below the 52-week high and 23.51% above the 52-week low.

The company has a GuruFocus profitability and growth rating of 7 out of 10. The return on equity of 85.62% and return on assets of 9.36% are outperforming 73% of companies in the Media – Diversified industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.03 is below the industry median of 0.82.

The company’s largest guru shareholder is Hotchkis & Wiley with 1.33% of outstanding shares, followed by Larry Robbins' (Trades, Portfolio) Glenview Capital Management with 1.10%, Seth Klarman (Trades, Portfolio)’s Baupost Group with 0.68%, PRIMECAP Management (Trades, Portfolio) with 0.37% and John Rogers (Trades, Portfolio) with 0.30%.

Disclosure: I do not own any stocks mentioned.

Read more here: 

7 Stocks Ken Fisher Continues to Buy 

6 Companies Growing Earnings Per Share 

6 Poorly Performing Stocks in Gurus' Portfolios 

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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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