5 Undervalued Stocks Growing Book Value

Magna International on the list

Author's Avatar
Jul 15, 2019
Article's Main Image

According to the GuruFocus All-In-One Screener, the following companies have grown their book value per share over the past decade.

Book value per share is calculated as total equity minus preferred stock, divided by shares outstanding. Theoretically, it is what shareholders will receive if a company is liquidated. Total equity is a balance sheet item and equal to total assets minus total liabilities. Since the book value per share may not reflect the company’s true value, some investors check the tangible book value to confirm their investment ideas.

The book value per share of China Biologic Products Holdings Inc. (CBPO) has grown 33.40% over the last 10 years. The price-book ratio is 2.11, and the price-tangible book value is 2.67.

The Chinese developer of products based on plasma has a $3.64 billion market cap.

According to the discounted cash flow calculator, the stock is undervalued with an 8.34% margin of safety at $93.42. The share price has been as high as $105.5 and as low as $60.08 in the last 52 weeks. As of Monday, the stock was trading 11.45% below its 52-week high and 55.49% above its 52-week low. The price-earnings ratio is 26.07.

Jim Simons' (Trades, Portfolio) Renaissance Technologies is the company's largest guru shareholder with 0.08% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.01%.

Bbva Banco Frances SA’s (BBAR) book value per share has grown 38.4% over the past decade. The price-book ratio is 2.19, and the price-tangible book value is 2.16.

The provider of banking services in Argentina has a market cap of $2.09 billion.

According to the discounted cash flow calculator, the stock is undervalued with a 23.05% margin of safety at $22.40. The share price has been as high as $14.9 and as low as $6.57 in the last 52 weeks. As of Monday, the stock was trading 16.51% below its 52-week high and 89.35% above its 52-week low. The price-earnings ratio is 6.81.

With 0.01% of outstanding shares, Ken Fisher (Trades, Portfolio) is the company's largest guru shareholder.

The book value per share of Amerco Inc. (UHAL) has grown 18.70% over the last 10 years. The price-book ratio is 1.96, and the price to tangible book value is 2.01.

1766140252.png

The provider of rental trucks has a market cap of $7.44 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 29.62% margin of safety at $379. The share price has been as high as $403.92 and as low as $316 in the last 52 weeks. The stock is trading 6.10% below its 52-week high and 20% above its 52-week low. The price-earnings ratio is 20.04.

With 2.86% of outstanding shares, David Abrams (Trades, Portfolio) is the company's largest guru shareholder, followed by Barrow, Hanley, Mewhinney & Strauss with 2.33%.

Discover Financial Services’ (DFS) book value per share has grown 11% over the past decade. The price-book ratio is 2.49, and the price to tangible book value is 2.59.

1593104416.png

The credit services provider has a market cap of $26.32 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 36.23% margin of safety at $81.29. The share price has been as high as $82.51 and as low as $54.36 in the last 52 weeks. The stock is currently trading 1.48% below its 52-week high and 49.54% above its 52-week low. The price-earnings ratio is 9.99.

PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder with 3.61% of outstanding shares followed by Diamond Hill Capital (Trades, Portfolio) with 1.62% and Hotchkis & Wiley with 1.31%.

The book value per share of Magna International Inc. (MGA) has grown 9.9% over the last 10 years. The price-book ratio is 1.35 and the price to tangible book value is 1.70.

The supplier of automotive products has a market cap of $15.38 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 46.10% margin of safety at $47.70. The share price has been as high as $61.65 and as low as $42.51 in the last 52 weeks. The stock is trading 22.63% below its 52-week high and 12.21% above its 52-week low. The price-earnings ratio is 5.80.

With 1.70% of outstanding shares, Hotchkis & Wiley is the company's largest guru shareholder, followed by Jeremy Grantham (Trades, Portfolio)’s GMO with 0.31%.

Disclosure: I do not own any stocks mentioned.

Read more here:Â

5 Quality Stocks With Margin of SafetyÂ

5 Health Care Stocks in Gurus' PortfoliosÂ

6 Stocks With Low Price-Sales RatiosÂ

Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.