5 Stocks Trading With Low Price-Sales Ratios

Kroger makes the list

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Jul 25, 2019
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According to the GuruFocus All-in-One Screener, the following companies look cheap since they are trading with low price-sales ratios as of Thursday.

Shares of Sonic Automotive Inc. (SAH, Financial) were trading around $26.02 with a price-sales ratio of 0.10 and a price-earnings ratio of 11.62.

The auto dealership group has a market cap of $1.12 billion. The stock has risen at an annualized rate of 9.10% over the last 10 years.

The discounted cash flow calculator gives the stock a fair value of $24.19, suggesting it is overpriced by 7.55%. The Peter Lynch value gives the stock a fair price of $13.81.

GuruFocus gives the company a profitability and growth rating of 5 out of 10. While the return on equity of 11.90% is outperforming the sector, the return on assets of 2.51% is underperforming 73% of companies in the Autos industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.21 is below the industry median of 0.48.

Hotchkis & Wiley is the company's largest guru shareholder with 7.14% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 0.58% and Jeremy Grantham (Trades, Portfolio) with 0.20%.

Core-Mark Holding Co. Inc. (CORE, Financial) wass trading around $38.4 with a price-sales ratio of 0.11 and a price-earnings ratio of 36.92.

The wholesale distributor has a market cap of $1.76 billion. The stock has risen at an annualized rate of 19.27% over the past decade.

The DCF calculator gives the stock a fair value of $12.8, suggesting it is overpriced by 200%.

GuruFocus gives the company a profitability and growth rating of 7 out of 10. The return on equity of 8.62% and return on assets of 2.90% are underperforming 58% of companies in the Retail - Defensive industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.05 is below the industry median of 0.4.

The company's largest guru shareholder is Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.59% of outstanding shares, followed by Grantham with 0.31% and Chuck Royce (Trades, Portfolio) with 0.28%.

Group 1 Automotive Inc. (GPI, Financial) was trading around $88 with a price-sales ratio of 0.13 and price-earnings ratio of 10.81.

The owner and operator of automotive dealerships has a market cap of $1.63 billion. The stock has risen at an annualized rate of 12.65% over the last 10 years.

The DCF calculator gives the stock a fair value of $87.33, suggesting it is fairly valued at current prices. The Peter Lynch value gives the stock a fair price of $115.99.

GuruFocus gives the company a profitability and growth rating of 7 out of 10. While the return on equity of 13.43% is outperforming the sector, the return on assets of 3.20% is underperforming 65% of companies in the Autos industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.01 is below the industry median of 0.48.

With 0.51% of outstanding shares, Grantham is another notable guru shareholder, followed by Joel Greenblatt (Trades, Portfolio) with 0.50%.

The Kroger Co. (KR, Financial) was trading around $21.24 with a price-sales ratio of 0.14 and a price-earnings ratio of 9.32.

As one of the largest retailers in the U.S., it has a market cap of $16.97 billion. The stock has risen at an annualized rate of 8.78% over the past decade.

The DCF calculator gives the company a fair value of $64.91, suggesting it is undervalued by 67.28%. The Peter Lynch value gives the stock a fair price of $23.69.

GuruFocus gives the company a profitability and growth rating of 6 out of 10. The return on equity of 23.61% and return on assets of 4.78% are outperforming 51% of companies in the Retail - Defensive industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.02 is below the industry median of 0.4.

The company's largest guru shareholder is Pioneer Investments (Trades, Portfolio) with 0.23% of outstanding shares, followed by the Smead Value Fund (Trades, Portfolio) with 0.15%.

Continental Materials Corp. (CUO, Financial) is trading around $15.6 with a price-sales ratio of 0.18 and a price-earnings ratio of 1.95.

The manufacturer of heating and cooling systems has a market cap of $26.76 million. The stock has risen at an annualized rate of 6.11% over the last 10 years.

The DCF calculator gives the company a fair value of $59.7, suggesting it is undervalued by 73.59%.

GuruFocus gives the company a profitability and growth rating of 6 out of 10. The return on equity of 26.31% and return on assets of 16.65% are outperforming 93% of companies in the Industrial Products industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 44.28 is above the industry median of 0.86.

The company's largest guru shareholder is Simons' firm with 0.68% of outstanding shares.

Disclosure: I do not own any stocks mentioned.

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