5 Undervalued Stocks Expanding Book Value

Amerco on the list

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Oct 22, 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.

Reinsurance Group of America

The book value per share of Reinsurance Group of America Inc. (RGA, Financial) has grown 11.20% over the last 10 years. The price-book ratio and the price-tangible book value are both 0.92.

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The American insurance holding company has a market cap of $9.84 billion and an enterprise value of 11.41 billion.

According to the discounted cash flow calculator, the stock is undervalued and is trading with a 33.51% margin of safety at $158. The share price has been as high as $163.46 and as low as $127.84 in the last 52 weeks. As of Tuesday, the stock was trading 4.12% below its 52-week high and 22.60% above its 52-week low. The price-earnings ratio is 12.82.

With 0.70% of outstanding shares, Diamond Hill Capital (Trades, Portfolio) is the company's largest guru shareholder, followed by Chuck Royce (Trades, Portfolio) with 0.13% and Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.11%.

WestRock

WestRock Co.'s (WRK, Financial) book value per share has grown 18.60% over the past decade. The price-book ratio is 0.80 and the price-tangible book value is 28.67.

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The company, which manufactures corrugated packaging and consumer packaging, has a market cap of $9.44 billion and an enterprise value of $19.22 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 3.14% margin of safety at $37.14. The share price has been as high as $48.55 and as low as $31.94 in the last 52 weeks. As of Tuesday, the stock was trading 24.41% below its 52-week high and 14.90% above its 52-week low. The price-earnings ratio is 11.40.

With 0.11% of outstanding shares, Robert Olstein (Trades, Portfolio) is the company's largest guru shareholder, followed by the Pioneer Investments (Trades, Portfolio) with 0.11%.

HollyFrontier

HollyFrontier Corp.'s (HFC, Financial) book value per share has grown 19.80% over the past decade. The price-book ratio is 1.55 and the price-tangible book value is 3.12.

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The petroleum refiner has a market cap of $9.02 billion and an enterprise value of $11.5 billion

According to the DCF calculator, the stock is undervalued and is trading with a 4.46% margin of safety at $56. The share price has been as high as $69.50 and as low as $37.73 in the last 52 weeks. As of Tuesday, the stock was trading 21.15% below its 52-week high and 45.24% above its 52-week low. The price-earnings ratio is 10.22.

With 0.27% of outstanding shares, Steven Cohen (Trades, Portfolio)’s Point72 Asset Management is the company's largest guru shareholder, followed by Ray Dalio (Trades, Portfolio)’s Bridgewater Associates with 0.14% and Joel Greenblatt (Trades, Portfolio)’s Gotham Asset Management with 0.11%

Amerco

The book value per share of Amerco Inc. (UHAL, Financial) has grown 18.70% over the last 10 years. The price-book ratio and the price to tangible book value are both 2.02.

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The company, which provides rental trucks to household movers, has a market cap of $7.8 billion and an enterprise value of $9.39 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 26.17% margin of safety at $400. The share price has been as high as $403.92 and as low as $316 in the last 52 weeks. As of Tuesday, the stock was trading 1.50% below its 52-week high and 25.91% above its 52-week low. The price-earnings ratio is 21.02.

With 2.86% of outstanding shares, the Abrams Capital Management’s David Abrams (Trades, Portfolio) is the company's largest guru shareholder, followed by the Barrow, Hanley, Mewhinney & Strauss (Trades, Portfolio) with 2.16%, HOTCHKIS & WILEY (Trades, Portfolio) with 1.07% and Yacktman Asset Management (Trades, Portfolio) with 0.89%.

Brookfield Renewable Partners

Brookfield Renewable Partners LP's (BEP, Financial) book value per share has grown 13.80% over the past decade. The price-book ratio is 1.45 and the price-tangible book value is 1.73.

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The renewable power generating company has a market cap of $7.64 billion and an enterprise value of $29.78 billion.

According to the DCF calculator, the stock is overpriced by 1,228% at $42.65. The share price has been as high as $42.76 and as low as $24.51 in the last 52 weeks. As of Tuesday, the stock was trading 0.26% below its 52-week high and 74.01% above its 52-week low. The price-earnings ratio is 136.78.

Simons’ firm is the company's largest guru shareholder with 0.02% of outstanding shares.

Disclosure: I do not own any stocks mentioned.

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