Asanko Gold and Mackenzie Master Limited Partnership 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 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.
Asanko Gold Inc. (TSX:AKG)
Asanko Gold Inc. engages in the exploration, development, and production of gold properties. Formed in 1999, and run by CEO Peter Breese, the company now has 380 employees and with the company’s market capitalisation at CAD CA$217.69M, we can put it in the small-cap category.
AKG’s stock is now hovering at around -73% less than its intrinsic value of $3.82, at the market price of CA$1.03, according to my discounted cash flow model. The mismatch signals a potential chance to invest in AKG at a discounted price.
AKG is also in good financial health, with current assets covering liabilities in the near term and over the long run.
Continue research on Asanko Gold here.
Mackenzie Master Limited Partnership (TSX:MKZ.UN)
Mackenzie Master Limited Partnership pays selling commissions to financial advisors who sell redemption charge securities of Mackenzie mutual funds for specific periods. Mackenzie Master Limited Partnership was established in 1995 and with the market cap of CAD CA$6.08M, it falls under the small-cap stocks category.
MKZ.UN’s shares are currently floating at around -58% below its real value of $2.28, at a price of CA$0.96, according to my discounted cash flow model. The divergence signals an opportunity to buy MKZ.UN shares at a low price. In addition to this, MKZ.UN’s PE ratio is trading at 6.49x while its Capital Markets peer level trades at, 13.65x implying that relative to its comparable set of companies, MKZ.UN’s shares can be purchased for a lower price. MKZ.UN is also robust in terms of financial health, with short-term assets covering liabilities in the near future as well as in the long run. MKZ.UN has zero debt on its books as well, meaning it has no long term debt obligations to worry about. More detail on Mackenzie Master Limited Partnership here.
Uranium Participation Corporation (TSX:U)
Uranium Participation Corporation operates as an investment holding company. Uranium Participation was started in 2005 and has a market cap of CAD CA$516.55M, putting it in the small-cap category.
U’s shares are currently trading at -33% lower than its actual value of $5.78, at a price tag of CA$3.85, based on my discounted cash flow model. The difference between value and price signals a potential opportunity to buy U shares at a discount. In terms of relative valuation, U’s PE ratio stands at around 8.94x while its Capital Markets peer level trades at, 13.65x indicating that relative to its competitors, we can buy U’s stock at a cheaper price today. U is also a financially robust company, with short-term assets covering liabilities in the near future as well as in the long run. U also has no debt on its balance sheet, which gives it headroom to grow and financial flexibility. Interested in Uranium Participation? 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.