Yahoo Finance Cheap TSXV Stocks For The Day
A stock that you can buy at a price below what it is worth is considered undervalued. This is the case for Partner Jet and Magellan Aerospace. There’s a few ways you can determine how much a company is actually worth. The most popular methods include discounting the company’s cash flows it is expected to create in the future, or comparing its price to its peers or the value of its assets. The discrepancy between the price and value means investors have an opportunity to buy shares at a discount. Below are the stocks I believe are undervalued on all criteria, based on their latest financial data.
Partner Jet Corp. (TSXV:PJT)
Partner Jet Corp., through its subsidiary, Partner Jet Inc., operates as a full service flight management and aircraft sales company in Canada. Partner Jet was established in 1987 and with the market cap of CAD CA$2.91M, it falls under the small-cap stocks category.
PJT’s stock is currently hovering at around -68% beneath its actual value of $1.17, at the market price of CA$0.38, according to my discounted cash flow model. This mismatch signals an opportunity to buy PJT shares at a discount. What’s even more appeal is that PJT’s PE ratio stands at around 6.2x against its its Airlines peer level of, 6.25x suggesting that relative to its peers, PJT can be bought at a cheaper price right now. PJT is also strong financially, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. PJT has zero debt on its books as well, meaning it has no long term debt obligations to worry about. Dig deeper into Partner Jet here.
Magellan Aerospace Corporation (TSX:MAL)
Magellan Aerospace Corporation, through its subsidiaries, designs, engineers, and manufactures aero engine and aero structure components for aerospace markets in Canada, the United Sates, and Europe. Formed in 1994, and run by CEO Phillip Underwood, the company employs 3,800 people and with the stock’s market cap sitting at CAD CA$992.46M, it comes under the small-cap group.
MAL’s stock is currently floating at around -50% below its value of $33.48, at the market price of CA$16.85, based on its expected future cash flows. This mismatch indicates a chance to invest in MAL at a discounted price. Furthermore, MAL’s PE ratio stands at around 11.01x compared to its Aerospace & Defense peer level of, 18.07x implying that relative to its comparable company group, MAL can be bought at a cheaper price right now. MAL is also strong in terms of its financial health, with near-term assets able to cover upcoming and long-term liabilities. Finally, its debt relative to equity is 11.39%, which has been dropping over the past couple of years signifying its capacity to pay down its debt. More detail on Magellan Aerospace here.
Q Investments Ltd. (TSXV:QI)
Q Investments Ltd. is a venture capital firm specializing in investments in early stage. Q Investments was founded in 1980 and with the company’s market cap sitting at CAD CA$459.01K, it falls under the small-cap category.
QI’s stock is now trading at -98% beneath its intrinsic value of $9.29, at the market price of CA$0.15, based on its expected future cash flows. This mismatch signals an opportunity to buy QI shares at a discount. In addition to this, QI’s PE ratio stands at 0.37x compared to its Capital Markets peer level of, 12.48x suggesting that relative to its comparable set of companies, you can buy QI’s shares at a cheaper price. QI is also a financially robust company, with near-term assets able to cover upcoming and long-term liabilities.
Dig deeper into Q Investments here.
For more financially sound, undervalued companies to add to your portfolio, explore this interactive list of undervalued stocks.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
