5 Cheap Retailers With Low Price-Sales Ratios

Best Buy on the list

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Sep 03, 2020
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According to the GuruFocus All-In-One Screener, a Premium feature, the following retailers were trading with low price-sales ratios as of Sept. 3.

Dillard's

Shares of Dillard's Inc. (DDS) were trading around $30.70 with a price-sales ratio of 0.14 and a price-book ratio of 0.52.

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The American department store chain has an $713 million market cap. The stock price has risen at an annualized rate of 5.18% over the past decade.

The Peter Lynch earnings line gives the stock a fair price of $65.55.

The company's largest guru shareholder is Pioneer Investments (Trades, Portfolio) with 0.49% of outstanding shares, followed by Lee Ainslie (Trades, Portfolio)'s Maverick Capital with 0.18%.

Dick's Sporting Goods

On Thursday, Dick's Sporting Goods Inc. (DKS) was trading around $56.13 per share with a price-sales ratio of 0.56 and a price-earnings ratio of 19.49.

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The retailer of athletic apparel has a market cap of $5 billion. The stock has risen at an annualized rate of 9.53% over the past 10 years.

The discounted cash flow calculator gives the stock a fair value of $40.60, suggesting it is overpriced by 38.25%, while the Peter Lynch earnings line gives the stock a fair price of $43.20.

With 0.41% of outstanding shares, Louis Moore Bacon (Trades, Portfolio) is the company's largest guru shareholder, followed by Jeremy Grantham (Trades, Portfolio) with 0.40% and Steven Cohen (Trades, Portfolio)'s Point72 Asset Management with 0.23%.

Best Buy

Best Buy Co. Inc. (BBY) was trading around $114 on Thursday with a price-sales ratio of 0.69 and a price-earnings ratio of 18.39.

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The retailer of consumer electronics has a market cap of $29.5 billion. The stock has risen at an annualized rate of 14.20% over the past decade.

The discounted cash flow calculator gives the stock a fair value of $58.22, suggesting it is trading with a margin of safety of 95.84%, while the Peter Lynch earnings line gives the stock a fair price of $93.

With 0.82% of outstanding shares, Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.40% and Ken Heebner (Trades, Portfolio) with 0.05%.

Conn's

Conn's Inc. (CONN) was trading around $13.70 with a price-sales ratio of 0.27 and a price-book ratio of 0.8.

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The specialty retailer has a market cap of $397 million. The stock has climbed at an annualized rate of 13.19% over the past 10 years.

The Peter Lynch earnings line gives the stock a fair price of $28.50.

One notable guru shareholder is Chuck Royce (Trades, Portfolio), who holds 1.43% of outstanding shares.

MarineMax

MarineMax Inc. (HZO) was trading around $29.39 per share with a price-sales ratio of 0.45 and a price-earnings ratio of 11.62.

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The seller of recreational boats has a market cap of $635 million. The stock has risen at an annualized rate of 15.3% over the past decade.

The discounted cash flow calculator gives the stock a fair value of $27.08, suggesting it is overpriced by 8.53%, while the Peter Lynch fair value is $37.95.

The company's largest guru shareholder is Paul Tudor Jones (Trades, Portfolio) with 0.08% of outstanding shares, followed by Renaissance Technologies with 0.05%.

Disclosure: I do not own any stocks mentioned.

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