April Top Undervalued Stock
Companies, such as Haverty Furniture Companies, are deemed to be undervalued because their shares are currently trading below their true values. Investors can determine how much a company is worth based on how much money they are expected to make in the future, or compared to the value of their peers. The list I’ve put together below are of stocks that compare favourably on all criteria, which potentially makes them good investments if you believe the price should eventually reflect the stock’s actual value.
Haverty Furniture Companies, Inc. (NYSE:HVT)
Haverty Furniture Companies, Inc. operates as a specialty retailer of residential furniture and accessories in the United States. Established in 1885, and now led by CEO Clarence Smith, the company provides employment to 3,551 people and has a market cap of USD $402.46M, putting it in the small-cap stocks category.
HVT’s shares are now hovering at around -43% below its true level of $31.76, at the market price of US$18.05, according to my discounted cash flow model. This difference in price and value gives us a chance to buy low. In addition to this, HVT’s PE ratio stands at around 18.14x compared to its index peer level of, 18.15x meaning that relative to its comparable company group, you can purchase HVT’s stock for a lower price right now. HVT is also in great financial shape, with near-term assets able to cover upcoming and long-term liabilities.
More detail on Haverty Furniture Companies here.
Cirrus Logic, Inc. (NASDAQ:CRUS)
Cirrus Logic, Inc., a fabless semiconductor company, develops, manufactures, and markets analog and mixed-signal integrated circuits (ICs) for a range of consumer and industrial markets. Founded in 1984, and currently lead by Jason Rhode, the company provides employment to 1,444 people and with the stock’s market cap sitting at USD $2.44B, it comes under the mid-cap category.
CRUS’s stock is now floating at around -53% less than its actual value of $79.28, at the market price of US$37.51, based on its expected future cash flows. The discrepancy signals an opportunity to buy low. Also, CRUS’s PE ratio stands at around 12.93x while its Semiconductor peer level trades at, 23.97x meaning that relative to its peers, you can purchase CRUS’s stock for a lower price right now. CRUS is also in great financial shape, with current assets covering liabilities in the near term and over the long run. CRUS also has no debt on its balance sheet, which gives it headroom to grow and financial flexibility. Interested in Cirrus Logic? Find out more here.
China Yuchai International Limited (NYSE:CYD)
China Yuchai International Limited, through its subsidiaries, manufactures and sells diesel and natural gas engines in the People’s Republic of China (PRC) and internationally. Started in 1951, and currently lead by , the company employs 9,887 people and with the stock’s market cap sitting at USD $877.46M, it comes under the small-cap stocks category.
CYD’s shares are now trading at -58% below its value of ¥50.65, at a price tag of US$21.04, according to my discounted cash flow model. The divergence signals an opportunity to buy CYD shares at a low price. In terms of relative valuation, CYD’s PE ratio is currently around 5.67x compared to its Machinery peer level of, 23.71x indicating that relative to its comparable set of companies, CYD’s shares can be purchased for a lower price. CYD is also a financially robust company, as short-term assets amply cover upcoming and long-term liabilities. Finally, its debt relative to equity is 9.12%, which has been diminishing over time, demonstrating its capability to pay down its debt. Dig deeper into China Yuchai International 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.
