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Tiziano Frateschi
Tiziano Frateschi
Articles (2038)  | Author's Website |

5 Stocks With Low Price-Earnings Ratios

Citigroup, Sony on the list

June 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 $157.18 billion, Citigroup Inc. (C) is trading with a price-earnings ratio of 9.88. According to the DCF calculator, the stock has a fair value of $73.63 while trading at $68. The price was stable over the last 12 months and is now 9.66% below the 52-week high and 40.38% above the 52-week low.

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GuruFocus gives the financial-services company a profitability and growth rating of 3 out of 10. The return on equity of 8.45% and return on assets of 0.94% are underperforming 53% of companies in the Banks - Global industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.73 is below the industry median of 1.43.

The company’s largest guru shareholder is Jeff Ubben (Trades, Portfolio)’s ValueAct Holdings with 1.36% of outstanding shares, followed by Hotchkis & Wiley with 0.54% and Diamond Hill Capital (Trades, Portfolio) with 0.44%.

With a $77.02 billion market cap, CNOOC Ltd. (CEO) is trading with a price-earnings ratio of 9.77 and a price-book ratio of 1.27. According to the DCF calculator, the stock has a fair value of $189.2 while trading at $171.49. The price was stable over the last 12 months. It is currently 15.26% below the 52-week high and 19.97% above the 52-week low.

GuruFocus gives the Chinese oil and gas exploration company a profitability and growth rating of 6 out of 10. The return on equity of 13.2% and return on assets of 8.08% are outperforming 73% of companies in the Oil and Gas E&P industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 1.10 is above the industry median of 0.51.

Jim Simons' (Trades, Portfolio) Renaissance Technologies is the company’s largest guru shareholder with 0.16% of outstanding shares followed by Howard Marks' (Trades, Portfolio) Oaktree Capital Management LP with 0.08% and Jeremy Grantham (Trades, Portfolio)’s GMO LLC with 0.01%.

With a market cap of $92.21 billion, Twenty-First Century Fox Inc. (TFCF) is trading with a price-earnings ratio of 6.66 and a price-book ratio of 2.88. According to the DCF calculator, the stock has a fair value of $79.83 while trading at $49.61. Shares have risen 41% over the last 12 months and are currently trading 1.62% below the 52-week high and 46.1% above the 52-week low.

GuruFocus gives the media conglomerate a profitability and growth rating of 7 out of 10. The return on equity of 63.3% and return on assets of 24.69% are outperforming 79% of companies in the Media - Diversified industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 1.11 is below the industry median of 0.82.

The company’s largest guru shareholder is MS Global Franchise Fund (Trades, Portfolio) with 0.04% of outstanding shares.

Sony Corp. (SNE) has a market cap of $65.76 billion and is trading with a price-earnings ratio of 7.99 and a price-book ratio of 1.94. According to the DCF calculator, the stock has a fair value of $67.85 while trading at $53.24. Shares have risen 8% over the last 12 months and are currently trading 12.75% below the 52-week high and 27.03% above the 52-week low.

GuruFocus gives the company a profitability and growth rating of 6 out of 10. The return on equity of 26.82% and return on assets of 4.54% are outperforming 54% of companies in the Consumer Electronics industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 2.06 is above the industry median of 1.26.

With 3.33% of outstanding shares, PRIMECAP Management (Trades, Portfolio) is the company’s largest guru shareholder, followed by Mario Gabelli (Trades, Portfolio)’s GAMCO Investors with 0.31%.

Mitsubishi UFJ Financial Group Inc. (MUFG) has a market cap of $60.82 billion. Its shares are trading with a price-earnings ratio of 7.90 and a price-book ratio of 0.48. According to the DCF calculator, the stock has a fair value of $6.61 while trading at $4.65. Shares have fallen 17% over a 12-month period and are currently trading 28.13% below the 52-week high and 3.56% above the 52-week low.

The company, which operates commercial banking, has a GuruFocus profitability and growth rating of 1 out of 10. The return on equity of 5.59% and return on assets of 0.29% are underperforming 82% of companies in the Banks - Global industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 4.85 is above the industry median of 1.43.

The company’s largest guru shareholder is Charles Brandes (Trades, Portfolio) with 0.04% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.02% and Simons’ firm with 0.01%.

Disclosure: I do not own any stocks mentioned.

Read more here: 

5 High-Yield Stocks in Gurus' Portfolios 

Insiders Roundup: Anaplan, Chubb 

Low Price-Earnings Stocks: Goldman Sachs, Gravity 

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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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