Party City Holdco and Aivtech International Group are two of the stocks I have identified as undervalued. This means their current share prices are trading at levels less than what the companies are actually worth. Investors can profit from the difference by investing in these stocks as the current market prices should eventually move towards their true values. If capital gains are what you’re after in your next investment, I’ve put together a list of undervalued stocks you may be interested in, based on the latest financial data from each company.
Party City Holdco Inc. (NYSE:PRTY)
Party City Holdco Inc., through its subsidiaries, designs, manufactures, sources, and distributes party supplies in the United States and internationally. Founded in 1947, and currently headed by CEO James Harrison, the company currently employs 14,000 people and with the stock’s market cap sitting at USD $1.48B, it comes under the small-cap group.
PRTY’s shares are currently hovering at around -33% below its actual value of $18.22, at a price of $12.25, according to my discounted cash flow model. This mismatch signals an opportunity to buy PRTY shares at a discount. Furthermore, PRTY’s PE ratio stands at 12.7x while its specialty retail peer level trades at 18x, indicating that relative to its peers, you can purchase PRTY’s stock for a lower price right now. PRTY is also strong financially, with current assets covering liabilities in the near term and over the long run. Finally, its debt relative to equity is 168%, which has been dropping for the past few years demonstrating its ability to reduce its debt obligations year on year.
Aivtech International Group Co. (OTCPK:AIVI)
Aivtech International Group Co. engages in designing, manufacturing, and selling electronic furniture products, digital/multimedia speakers, and LCD/LED televisions under the AIV brand name in the People’s Republic of China. The company provides employment to 693 people and with the company’s market cap sitting at USD $137.61K, it falls under the small-cap stocks category.
AIVI’s stock is now hovering at around -100% below its value of $1.46, at a price tag of $0.01, based on my discounted cash flow model. This mismatch signals an opportunity to buy AIVI shares at a discount. Moreover, AIVI’s PE ratio stands at 0x while its consumer durables peer level trades at 17.5x, implying that relative to its competitors, you can buy AIVI for a cheaper price. AIVI is also strong in terms of its financial health, with short-term assets covering liabilities in the near future as well as in the long run. It’s debt-to-equity ratio of 1% has over time, demonstrating AIVI’s ability
MotorVac Technologies, Inc. (OTCPK:MVAC)
MotorVac Technologies, Inc. manufactures fuel system cleaning equipment and detergents for gasoline and diesel powered engines. MotorVac Technologies is run by CEO . With a current market cap of USD $101.60K, we can put MVAC in the small-cap group
MVAC’s shares are currently hovering at around -97% beneath its true value of $0.79, at a price tag of $0.02, based on my discounted cash flow model. This price and value mismatch indicates a potential opportunity to buy the stock at a low price. What’s even more appeal is that MVAC’s PE ratio is around 0.1x relative to its auto components peer level of 13.9x, implying that relative to its competitors, we can buy MVAC’s stock at a cheaper price today. MVAC is also robust in terms of financial health, as short-term assets amply cover upcoming and long-term liabilities. MVAC also has no debt on its balance sheet, which gives it headroom to grow and financial flexibility.
For more financially sound, undervalued companies to add to your portfolio, you can use our free platform to explore our 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.