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Tiziano Frateschi
Tiziano Frateschi
Articles (2120)  | Author's Website |

Low Price-Earnings Stocks: Goldman Sachs, Gravity

4 cheap stocks

June 20, 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 $26.81 billion, Fortive Corp. (FTV) is trading with a price-earnings ratio of 9.91 and a price-book ratio of 3.97. According to the DCF calculator, the stock has a fair value of $27.4 while trading at $80. The price was stable over the last 12 months and is 10.28% below the 52-week high and 27.65% above the 52-week low.

GuruFocus gives the company a profitability and growth rating of 6 out of 10. The return on equity of 47.68% and return on assets of 21.65% are outperforming 91% of companies in the Scientific & Technical Instruments industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.65 is below the industry median of 1.26.

The company’s largest guru shareholder is Pioneer Investments (Trades, Portfolio) with 0.25% of outstanding shares, followed by Joel Greenblatt (Trades, Portfolio)’s Gotham Asset Management with 0.10%.

With a $1.61 billion market cap, Asbury Automotive Group Inc. (NYSE:SAN) is trading with a price-earnings ratio of 9.79 and a price-book ratio of 3.19. According to the DCF calculator, the stock has a fair value of $90.54 while trading at $82.21. Shares have fallen 20% over the last 12 months. They are currently 2.02% below the 52-week high and 40.60% above the 52-week low.

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GuruFocus gives the automobile dealer a profitability and growth rating of 7 out of 10. The return on equity of 36.17% and return on assets of 6.46% are outperforming 70% of companies in the Auto & Truck Dealerships industry. Its financial strength is rated 5 out of 10 with no debt.

David Abrams (Trades, Portfolio) is the company’s largest guru shareholder with 9.81% of outstanding shares.

With a market cap of $71.57 billion, Goldman Sachs Group Inc. (GS) is trading with a price-earnings ratio of 8.12 and a price-book ratio of 0.95. According to the DCF calculator, the stock has a fair value of $299.43 while trading at $194.91. Shares have fallen 14% over the last 12 months and are currently trading 20.50% below the 52-week high and 28.43% above the 52-week low.

GuruFocus gives the investment bank a profitability and growth rating of 3 out of 10. While the return on equity of 10.64% is outperforming the industry, the return on assets of 1.04% is underperforming 68% of companies in the Capital Markets industry. Its financial strength is rated 3 out of 10. The cash-debt ratio of 0.30 is below industry median of 5.11.

The company’s largest guru shareholder is Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway with 5.02% of outstanding shares, followed by Dodge & Cox with 3.11% and Hotchkis & Wiley with 0.81%.

Federal Agricultural Mortgage Corp. (AGM.A) has a market cap of $754 million. Its shares are trading with a price-earnings ratio of 7.26 and a price-book ratio of 1.23. According to the DCF calculator, the stock has a fair value of $93.75 while trading at $63.6. Shares have fallen 26% over a 12-month period and are currently trading 27.53% below the 52-week high and 17.89% above the 52-week low.

The provider of credit services has a GuruFocus profitability and growth rating of 4 out of 10. While the return on equity of 12.39% is outperforming the sector, the return on assets of 0.57% is underperforming 66% of companies in the Credit Services industry. Its financial strength is rated 3 out of 10. The cash-debt ratio of 0.02 is below the industry median of 8.43.

Disclosure: I do not own any stocks mentioned.

Read more here: 

5 Companies Outperforming the Market 

5 Large-Cap Stocks With Low Price-Sales Ratios 

6 Predictable Guru Stocks 

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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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