6 Companies Growing Earnings

6 Companies Growing Earnings

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Companies that are growing their earnings are often good investments because they can return a solid profit to investors.

According to GuruFocus' discounted cash flow calculator as of March 4, the following undervalued companies have a high margin of safety and have grown their earnings per share over a five-year period.


Alibaba

Alibaba Group Holding Ltd.'s (NYSE:BABA) earnings per share have grown 25.3% per annum over the past five years.

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According to the DCF calculator, the stock is undervalued with a 22% margin of safety at $212 per share. The price-earnings ratio is 22.41. The share price has been as high as $231.14 and as low as $147.95 in the last 52 weeks; it is currently 8.29% below its 52-week high and 43.27% above its 52-week low.

The world's largest e-commerce company has a market cap of $561 billion and an enterprise value of $544 billion.

With 0.56% of outstanding shares, PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder, followed by Ken Fisher (Trades, Portfolio) with 0.49%, Frank Sands (Trades, Portfolio) with 0.40% and Steve Mandel (Trades, Portfolio) with 0.23%.

Chase

The earnings per share of Chase Corp. (CCF) have grown 7.8% per annum over the past five years.

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According to the DCF calculator, the stock is undervalued with a 6.84% margin of safety at $85.69 per share. The price-earnings ratio is 26.30. The share price has been as high as $127.5 and as low as $76.6 in the last 52 weeks; it is currently 32.79% below its 52-week high and 26.30% above its 52-week low.

The manufacturer of chemical products has a market cap of $88 million and an enterprise value of $759 million.

The company's largest guru shareholder is Jim Simons (Trades, Portfolio)' Renaissance Technologies with 4.2% of outstanding shares, followed by Chuck Royce (Trades, Portfolio) with 1.85%.

GATX

GATX Corp.'s (NYSE:GATX) earnings per share have grown 10.20% per annum over the past five years.

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According to the DCF calculator, the stock is undervalued with a 21.37% margin of safety at $71.77 per share. The price-earnings ratio is 21.28. The share price has been as high as $86.01 and as low as $69.49 in the last 52 weeks; it is currently 15% below its 52-week high and 5.21% above its 52-week low.

The business services company has a market cap of $2.55 billion and an enterprise value of $7.63 billion.

The company's largest guru shareholder is Mario Gabelli (Trades, Portfolio) with 5.85% of outstanding shares, followed by Paul Tudor Jones (Trades, Portfolio) with 0.03% and Ray Dalio (Trades, Portfolio)'s Bridgewater Associates with 0.02%.