5 Quality Stocks With Margin of Safety

Maximus on the list

Author's Avatar
Jul 14, 2019
Article's Main Image

According to the GuruFocus All-in-One Screener, the following companies have high business predictability ratings and a wide margin of safety.

Ituran Location and Control Ltd. (ITRN)

The company has a 4.5-star business predictability rank and, according to the discounted cash flow calculator, a 47% margin of safety at $30.48 per share.

The company has a market cap of $715 million and an enterprise value of $748 million. Over the last five years, its revenue has grown 8.5%.

Over the last 12 months, the stock has increased 5% and is currently trading with a price-earnings ratio of 10.52. The share price has been as high as $38.5 and as low as $29.25 in the last 52 weeks. As of Monday, the stock was trading 20.83% below its 52-week high and 4.21% above its 52-week low.

With 5.89% of outstanding shares, Jim Simons (Trades, Portfolio)’ Renaissance Technologies is the company's largest guru shareholder.

Cambrex Corp. (CBM)

The company has a 3.5-star business predictability rank and, according to the DCF calculator, a 34% margin of safety at $44 per share.

The biotechnology company has a market cap of $1.49 billion and an enterprise value of $1.92 billion. Over the last five years, its revenue has increased 9.40% and its earnings per share have grown 22.7%.

The price dropped 20% over the last 12 months and shares are currently trading with a price-earnings ratio of 18.78 and a price-book ratio of 2.26. The price has been as high as $69.43 and as low as $33.8 in the last 52 weeks. As of Monday, the stock was trading 36.44% below its 52-week high and 30.56% above its 52-week low.

With 0.53% of outstanding shares, Chuck Royce (Trades, Portfolio) is the company's largest guru shareholder, followed by Simons’ firm with 0.37%.

Maximus Inc. (MMS)

The company has a 4-star business predictability rank and, according to the DCF calculator, a 23% margin of safety at $74 per share.

The health and human services operator, has a $4.76 billion market cap and an enterprise value of $4.79 billion. Over the last five years, its revenue has grown 14.1% and its earnings per share have risen 14.8%.

Shares have increased 16% over the last 12 months; the stock is currently trading with a price-earnings ratio of 21.65 and a price-book ratio of 4.22. The price has been as high as $78.64 and as low as $60 in the last 52 weeks. The stock is currently trading 3.01% below its 52-week high and 24.22% above its 52-week low.

With 1.16% of outstanding shares, Ron Baron (Trades, Portfolio) is the company's largest guru shareholder, followed by Simons’ firm with 0.70%.

Thor Industries Inc. (THO)

The company has a 3.5-star business predictability rank and, according to the DCF calculator, a 13.89% margin of safety at $59.32 per share.

1544500727.png

The recreational vehicles manufacturer has a $3.27 billion market cap. Over the last five years, its revenue has grown 22.4% and its earnings per share have risen 24.9%.

Shares have fallen 40% over the last 12 months; the stock is currently trading with a price-earnings ratio of 24.52 and a price-book ratio of 1.6. The price has been as high as $109.94 and as low as $47.71 in the last 52 weeks. The stock is currently trading 46.04% below its 52-week high and 24.33% above its 52-week low.

The company's largest guru shareholder is Royce with 0.59% of outstanding shares, followed by Simons’ firm with 0.30% and Hotchkis & Wiley with 0.16%.

Littelfuse Inc. (LFUS)

The company has a 3.5-star business predictability rank and, according to the DCF calculator, a 8.32% margin of safety at $170.69 per share.

The computer hardware manufacturer has a market cap of $4.22 billion. Over the last five years, its revenue has grown 14.6% and its earnings per share have increased 10%.

Shares have fallen 25% over the last 12 months; the stock is currently trading with a price-earnings ratio of 26.07 and a price-book ratio of 2.83. The price has been as high as $231.42 and as low as $155.15 in the last 52 weeks. The stock is currently trading 26.24% below its 52-week high and 10.02% above its 52-week low.

With 2.14% of outstanding shares, Ken Fisher (Trades, Portfolio) is the company's largest guru shareholder, followed by John Rogers (Trades, Portfolio) with 1.79% and Mairs and Power (Trades, Portfolio) with 1.54%.

Disclosure: I do not own any stocks mentioned.