Yahoo Finance Value Stocks Investors Love
A stock that you can buy at a price below what it is worth is considered undervalued. This is the case for Tricon Capital Group and Planet Ventures. There’s a few ways you can measure the value of a company – you can forecast how much money it will make in the future and base your valuation off of this, or you can look around at its peers of similar size and industry to roughly estimate what it should be worth. Below, I’ve created a list of companies that compare favourably in all criteria based on their most recent financial data, making them potentially good investments.
Tricon Capital Group Inc. (TSX:TCN)
Tricon Capital Group Inc. is a principal investor and asset manager focused on the residential real estate industry in North America. Established in 1988, and currently lead by Gary Berman, the company currently employs 556 people and with the market cap of CAD CA$1.47B, it falls under the small-cap category.
TCN’s shares are currently floating at around -49% under its actual level of $21.64, at a price of CA$11.07, according to my discounted cash flow model. This mismatch indicates a potential opportunity to buy low. Also, TCN’s PE ratio stands at around 7.07x compared to its Real Estate peer level of, 10.45x indicating that relative to other stocks in the industry, TCN can be bought at a cheaper price right now. TCN is also a financially healthy company, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. It’s debt-to-equity ratio of 43.95% has been reducing over the past couple of years revealing TCN’s ability to pay down its debt. Interested in Tricon Capital Group? Find out more here.
Planet Ventures Inc. (TSXV:PXI)
Planet Mining Exploration Inc., an investment company, focuses on holding investments in the resource, biotechnology, and technology companies. Planet Ventures was established in 1996 and with the company’s market capitalisation at CAD CA$10.30M, we can put it in the small-cap group.
PXI’s stock is now floating at around -52% beneath its true level of $0.27, at the market price of CA$0.13, based on its expected future cash flows. This discrepancy gives us a chance to invest in PXI at a discount. Additionally, PXI’s PE ratio is currently around 7.23x while its Capital Markets peer level trades at, 12.51x meaning that relative to its competitors, we can buy PXI’s stock at a cheaper price today. PXI also has a healthy balance sheet, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. PXI has zero debt on its books as well, meaning it has no long term debt obligations to worry about. More detail on Planet Ventures here.
Hardwoods Distribution Inc. (TSX:HDI)
Hardwoods Distribution Inc. distributes hardwood lumber, plywood, medium density fiberboard, melamine, particleboards, and specialty products to the industrial and retail markets in North America. The company currently employs 1148 people and with the company’s market cap sitting at CAD CA$391.10M, it falls under the small-cap stocks category.
HDI’s stock is now hovering at around -30% lower than its real value of $25.54, at the market price of CA$17.89, based on its expected future cash flows. signalling an opportunity to buy the stock at a low price. Furthermore, HDI’s PE ratio is trading at around 12.66x relative to its Trade Distributors peer level of, 16.79x suggesting that relative to its comparable company group, you can buy HDI’s shares at a cheaper price. HDI is also in good financial health, as near-term assets sufficiently cover liabilities in the near future as well as in the long run.
Interested in Hardwoods Distribution? Find out more 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.
