Energy companies, such as VOC Energy Trust, trading at a market price below their true values are considered to be undervalued. 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.
VOC Energy Trust (NYSE:VOC)
VOC Energy Trust acquires and holds a term net profits interest of the net proceeds from production and sale of the interests in oil and natural gas properties in the states of Kansas and Texas. VOC Energy Trust was formed in 2010 and has a market cap of USD $88.74M, putting it in the small-cap stocks category.
VOC’s stock is now trading at -24% under its actual level of $6.74, at a price tag of US$5.10, based on my discounted cash flow model. The difference between value and price signals a potential opportunity to buy VOC shares at a discount. In terms of relative valuation, VOC’s PE ratio is trading at 10.3x while its Oil and Gas peer level trades at, 13.16x implying that relative to its comparable company group, we can purchase VOC’s shares for cheaper. VOC is also a financially robust company, with near-term assets able to cover upcoming and long-term liabilities. VOC also has no debt on its balance sheet, which gives it headroom to grow and financial flexibility. More detail on VOC Energy Trust here.
Navios Maritime Midstream Partners L.P. (NYSE:NAP)
Navios Maritime Midstream Partners L.P. owns, operates, and acquires crude oil tankers, refined petroleum product tankers, chemical tankers, and liquefied petroleum gas tankers. Navios Maritime Midstream Partners was established in 2014 and with the market cap of USD $96.61M, it falls under the small-cap category.
NAP’s stock is now hovering at around -77% beneath its actual level of $19.03, at a price of US$4.29, according to my discounted cash flow model. This mismatch indicates a potential opportunity to buy low. Furthermore, NAP’s PE ratio is trading at around 6.25x while its Oil and Gas peer level trades at, 13.16x suggesting that relative to its comparable company group, we can invest in NAP at a lower price. NAP is also a financially healthy company, as short-term assets amply cover upcoming and long-term liabilities. Finally, its debt relative to equity is 76.84%, which has been dropping for the last couple of years signalling NAP’s capacity to pay down its debt. More on Navios Maritime Midstream Partners here.
Hallador Energy Company (NASDAQ:HNRG)
Hallador Energy Company, through its subsidiaries, engages in the mining, production, and sale of steam coal for the electric power generation industry in the United States. Started in 1949, and currently run by Brent Bilsland, the company employs 742 people and with the market cap of USD $190.82M, it falls under the small-cap stocks category.
HNRG’s stock is currently trading at -58% below its intrinsic value of $15.44, at a price tag of US$6.54, based on its expected future cash flows. This difference in price and value gives us a chance to buy low. In terms of relative valuation, HNRG’s PE ratio is around 6.05x while its Oil and Gas peer level trades at, 13.16x indicating that relative to its comparable company group, we can purchase HNRG’s shares for cheaper. HNRG is also strong in terms of its financial health, as short-term assets amply cover upcoming and long-term liabilities.
Continue research on Hallador Energy 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.