5 Companies Boosting Book Value

Carter's makes the list

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Aug 13, 2019
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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 Itau Corpbanca (ITCB, Financial) has grown 11.60% over the last 10 years. The price-book ratio is 0.82, and the price to tangible book value is 1.54.

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The commercial bank has a $3.85 billion market cap.

According to the discounted cash flow calculator, the stock is overpriced by 64.94% at $11.48. The share price has been as high as $15.95 and as low as $10.70 in the last 52 weeks. As of Tuesday, the stock was trading 27.96% below its 52-week high and 7.31% above its 52-week low. The price-earnings ratio is 17.90

Jim Simons (Trades, Portfolio)' Renaissance Technologies is the company's largest guru shareholder with 0.09% of outstanding shares.

Carter's Inc.’s (CRI, Financial) book value per share has grown 7.80% over the past decade. The price-book ratio is 4.81, and the price-tangible book value is 20.91.

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The children's apparel company has a market cap of $3.82 billion.

According to the DCF calculator, the stock is undervalued with a 34% margin of safety at $88. The share price has been as high as $111.28 and as low as $75.66 in the last 52 weeks. As of Tuesday, the stock was trading 21.34% below its 52-week high and 15.69% above its 52-week low. The price-earnings ratio is 14.21.

With 1.03% of outstanding shares, Diamond Hill Capital (Trades, Portfolio) is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.67%, Bernard Horn (Trades, Portfolio) with 0.13% and Joel Greenblatt (Trades, Portfolio) with 0.12%.

The book value per share of Tech Data Corp. (TECD, Financial) has grown 7.30% over the last 10 years. The price-book ratio is 1.18, and the price to tangible book value is 3.04.

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The company, which distributes technology products, has a market cap of $3.28 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 25% margin of safety at $90. The share price has been as high as $111.08 and as low as $66.93 in the last 52 weeks. As of Tuesday, the stock was trading 19.90% below its 52-week high and 32.94% above its 52-week low. The price-earnings ratio is 9.41.

With 0.53% of outstanding shares, Jeremy Grantham (Trades, Portfolio) is the company's largest guru shareholder, followed by Hotchkis & Wiley with 0.16% and Barrow, Hanley, Mewhinney & Strauss with 0.06%.

Home BancShares Inc.’s (HOMB, Financial) book value per share has grown 16.30% over the past decade. The price-book ratio is 1.26, and the price to tangible book value is 2.22.

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The bank has a market cap of $3.11 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 62% margin of safety at $18.49. The share price has been as high as $24.56 and as low as $15.35 in the last 52 weeks. As of Tuesday, the stock was trading 24.71% below its 52-week high and 20.46% above its 52-week low. The price-earnings ratio is 10.79.

Hotchkis & Wiley is the company's largest guru shareholder with 0.09% of outstanding shares, followed by Simons’ firm with 0.08% and Robert Olstein (Trades, Portfolio) with 0.05%.

The book value per share of Dick's Sporting Goods Inc. (DKS, Financial) has grown 7.90% over the last 10 years. The price-book ratio is 1.80 and the price to tangible book value is 2.13.

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The sporting goods retailer has a market cap of $3.11 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 6.92% margin of safety at $33. The share price has been as high as $41.21 and as low as $29.69 in the last 52 weeks. The stock is trading 20.97% below its 52-week high and 9.70% above its 52-week low. The price-earnings ratio is 10.33.

With 0.39% of outstanding shares, Ron Baron (Trades, Portfolio) is the company's largest guru shareholder, followed by Pioneer Investments with 0.24%, Lee Ainslie (Trades, Portfolio) with 0.19% and Richard Snow (Trades, Portfolio) with 0.10%.

Disclosure: I do not own any stocks mentioned.

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