Best NYSE Undervalued Companies
China Yuchai International and Net 1 UEPS Technologies are companies that are currently trading below what they’re actually worth. 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.
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. Established in 1951, and headed by CEO , the company currently employs 9,887 people and with the company’s market capitalisation at USD $916.64M, we can put it in the small-cap group.
CYD’s stock is currently trading at -55% below its actual worth of ¥51.21, at a price of US$23.00, based on my discounted cash flow model. This discrepancy gives us a chance to invest in CYD at a discount. In addition to this, CYD’s PE ratio is around 6.24x compared to its Machinery peer level of, 24.16x implying that relative to its comparable company group, CYD’s shares can be purchased for a lower price. CYD also has a healthy balance sheet, as current assets can cover liabilities in the near term and over the long run. It’s debt-to-equity ratio of 9.12% has been diminishing over the past couple of years showing its capability to reduce its debt obligations year on year. Interested in China Yuchai International? Find out more here.
Net 1 UEPS Technologies, Inc. (NASDAQ:UEPS)
Net 1 UEPS Technologies, Inc. provides payment solutions, transaction processing services, and financial technologies to various industries in South Africa, South Korea, and internationally. Established in 1989, and run by CEO Herman Kotzé, the company employs 5,358 people and has a market cap of USD $580.83M, putting it in the small-cap stocks category.
UEPS’s stock is now hovering at around -51% beneath its real value of $20.93, at a price tag of US$10.23, based on my discounted cash flow model. The mismatch signals a potential chance to invest in UEPS at a discounted price. Additionally, UEPS’s PE ratio is currently around 9.79x compared to its IT peer level of, 24.87x suggesting that relative to its comparable company group, UEPS’s stock can be bought at a cheaper price. UEPS is also a financially healthy company, with current assets covering liabilities in the near term and over the long run. The stock’s debt-to equity ratio of 15.80% has been diminishing for the last couple of years revealing UEPS’s ability to pay down its debt. More detail on Net 1 UEPS Technologies here.
American Axle & Manufacturing Holdings, Inc. (NYSE:AXL)
American Axle & Manufacturing Holdings, Inc., together with its subsidiaries, designs, engineers, validates, and manufactures driveline, metal forming, powertrain, and casting products. Formed in 1994, and run by CEO David Dauch, the company currently employs 25,000 people and with the company’s market cap sitting at USD $1.59B, it falls under the small-cap stocks category.
AXL’s shares are now floating at around -36% less than its real value of $22.8, at the market price of US$14.59, according to my discounted cash flow model. signalling an opportunity to buy the stock at a low price. In addition to this, AXL’s PE ratio is trading at around 4.53x compared to its Auto Components peer level of, 14.3x indicating that relative to other stocks in the industry, you can buy AXL for a cheaper price. AXL is also robust in terms of financial health, 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 258.15% has been reducing over time, showing its capability to pay down its debt. More detail on American Axle & Manufacturing Holdings here.
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.
