Undervalued companies, such as Foot Locker and Biostar Pharmaceuticals, are those that trade at a price below their actual values. 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.
Foot Locker, Inc. (NYSE:FL)
Foot Locker, Inc., through its subsidiaries, operates as an athletic shoes and apparel retailer. Established in 1879, and headed by CEO Richard Johnson, the company size now stands at 32,175 people and with the company’s market capitalisation at USD $4.92B, we can put it in the mid-cap category.
FL’s shares are currently hovering at around -23% under its value of $52.84, at a price of US$40.52, according to my discounted cash flow model. This mismatch signals an opportunity to buy FL shares at a discount. Furthermore, FL’s PE ratio is trading at around 18.15x while its Specialty Retail peer level trades at, 19.25x suggesting that relative to its peers, we can purchase FL’s shares for cheaper. FL 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. The stock’s debt-to-equity ratio of 4.96% has been diminishing for the past few years signifying FL’s capacity to reduce its debt obligations year on year. Continue research on Foot Locker here.
Biostar Pharmaceuticals, Inc. (NASDAQ:BSPM)
Biostar Pharmaceuticals, Inc. develops, manufactures, and markets over-the-counter (OTC) and prescription pharmaceutical products for various diseases and conditions in the People’s Republic of China. Formed in 2007, and now run by Ronghua Wang, the company currently employs 200 people and with the company’s market capitalisation at USD $7.57M, we can put it in the small-cap category.
BSPM’s shares are now floating at around -85% lower than its actual worth of $18.29, at a price of US$2.68, based on its expected future cash flows. This price and value mismatch indicates a potential opportunity to buy the stock at a low price. In addition to this, BSPM’s PE ratio stands at 7.51x compared to its Pharmaceuticals peer level of, 23.49x meaning that relative to its competitors, you can purchase BSPM’s stock for a lower price right now. BSPM is also in good financial health, with current assets covering liabilities in the near term and over the long run.
Continue research on Biostar Pharmaceuticals here.
MEDNAX, Inc. (NYSE:MD)
MEDNAX, Inc., together with its subsidiaries, provides newborn, anesthesia, maternal-fetal, radiology, pediatric cardiology, and other pediatric subspecialties physician services in the United States and Puerto Rico. Formed in 1979, and currently lead by Roger Medel, the company currently employs 11,825 people and with the stock’s market cap sitting at USD $4.22B, it comes under the mid-cap group.
MD’s shares are now floating at around -53% less than its actual level of $97.58, at a price tag of US$45.63, according to my discounted cash flow model. This discrepancy gives us a chance to invest in MD at a discount. In terms of relative valuation, MD’s PE ratio is around 12.83x against its its Healthcare peer level of, 21.1x implying that relative to its comparable company group, you can purchase MD’s stock for a lower price right now. MD is also strong in terms of its financial health, as current assets can cover liabilities in the near term and over the long run.
More on MEDNAX 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.