Amira Nature Foods and Talon International are stocks on my list that are potentially undervalued. This means their current share prices are trading well-below what the companies are actually worth. Investors can benefit from buying these companies while they are discounted, because they gain when the market prices move towards the stocks’ true values. Below is a list of stocks I’ve compiled that are deemed undervalued based on the latest financial data.
Amira Nature Foods Ltd. (NYSE:ANFI)
Amira Nature Foods Ltd. engages in processing, sourcing, and selling packaged Indian specialty rice. Formed in 1915, and now run by Karan Chanana, the company employs 224 people and with the company’s market capitalisation at USD $168.93M, we can put it in the small-cap category.
ANFI’s stock is currently floating at around -58% lower than its real value of $9.79, at a price of $4.15, according to my discounted cash flow model. The difference between value and price signals a potential opportunity to buy ANFI shares at a discount. In terms of relative valuation, ANFI’s PE ratio is currently around 4.9x relative to its food peer level of 21.6x, implying that relative to its peers, ANFI’s shares can be purchased for a lower price. ANFI is also strong financially, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. The stock’s debt-to equity ratio of 72% has been reducing for the past few years signalling ANFI’s ability to pay down its debt. More detail on Amira Nature Foods here.
Talon International, Inc. (OTCPK:TALN)
Talon International, Inc. manufactures and distributes apparel components and accessories to manufacturers of fashion apparel, specialty retailers, and mass merchandisers. Formed in 1980, and headed by CEO Larry Dyne, the company provides employment to 201 people and with the market cap of USD $6.69M, it falls under the small-cap group.
TALN’s stock is currently hovering at around -63% less than its real value of $0.21, at a price of $0.08, based on its expected future cash flows. The mismatch signals a potential chance to invest in TALN at a discounted price. Moreover, TALN’s PE ratio stands at 14.8x while its luxury peer level trades at 21.8x, suggesting that relative to its peers, we can invest in TALN at a lower price. TALN also has a healthy balance sheet, with near-term assets able to cover upcoming and long-term liabilities.
More on Talon International here.
HH Biotechnology Holdings Company (OTCPK:HHBT)
HH Biotechnology Holdings Company engages in health and green industries. Started in 1987, and run by CEO Sheng Jiang, the company now has 121 employees and with the stock’s market cap sitting at USD $14.06M, it comes under the small-cap stocks category.
HHBT’s shares are currently floating at around -82% below its actual level of $5.62, at a price tag of $1, based on my discounted cash flow model. The mismatch signals a potential chance to invest in HHBT at a discounted price. Also, HHBT’s PE ratio stands at around 4.9x against its its real estate peer level of 13x, indicating that relative to other stocks in the industry, you can buy HHBT’s shares at a cheaper price. HHBT is also strong in terms of its financial health, with near-term assets able to cover upcoming and long-term liabilities. HHBT has zero debt on its books as well, meaning it has no long term debt obligations to worry about. Interested in HH Biotechnology Holdings? Find out more 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.