Best Undervalued Stock in December
A stock that you can buy at a price below what it is worth is considered undervalued. This is the case for Firan Technology Group and Chibougamau Independent Mines. 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.
Firan Technology Group Corporation (TSX:FTG)
Firan Technology Group Corporation, together with its subsidiaries, supplies aerospace and defense electronic products and subsystems worldwide. Established in 1983, and now run by Bradley Bourne, the company size now stands at 465 people and with the company’s market cap sitting at CAD CA$80.76M, it falls under the small-cap category.
FTG’s stock is currently hovering at around -57% under its true level of $8.38, at a price tag of $3.57, based on its expected future cash flows. signalling an opportunity to buy the stock at a low price. What’s even more appeal is that FTG’s PE ratio is trading at around 46.9x while its electronic peer level trades at 37.8x, suggesting that relative to its competitors, we can buy FTG’s stock at a cheaper price today. FTG 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 29% has been declining for the past few years revealing its capacity to reduce its debt obligations year on year.
Chibougamau Independent Mines Inc. (TSXV:CBG)
Chibougamau Independent Mines Inc. engages in the acquisition, exploration, and development of natural resource properties in Canada. Chibougamau Independent Mines was started in 2010 and with the company’s market cap sitting at CAD CA$2.11M, it falls under the small-cap stocks category.
CBG’s stock is now floating at around -63% beneath its actual worth of $0.15, at a price of $0.06, based on its expected future cash flows. This discrepancy signals a potential opportunity to buy CBG shares at a low price. In addition to this, CBG’s PE ratio is around 11x relative to its metals and mining peer level of 11.6x, suggesting that relative to its comparable company group, you can purchase CBG’s stock for a lower price right now. CBG is also in great financial shape, with current assets covering liabilities in the near term and over the long run.
Northfield Capital Corporation (TSXV:NFD.A)
Northfield Capital Corporation serves as an investment company that invests in companies operating in the glass, manufacturing, oil and gas, mining, and technology industries. Northfield Capital was formed in 1981 and with the market cap of CAD CA$59.69M, it falls under the small-cap group.
NFD.A’s stock is now trading at -56% less than its actual worth of $55.31, at a price of $24.5, based on its expected future cash flows. This discrepancy gives us a chance to invest in NFD.A at a discount. Moreover, NFD.A’s PE ratio stands at around 5.2x compared to its capital markets peer level of 12.7x, implying that relative to its competitors, NFD.A’s stock can be bought at a cheaper price. NFD.A is also robust in terms of financial health, as current assets can cover liabilities in the near term and over the long run. NFD.A 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.
