Flavor Of The Month: Net 1 UEPS Technologies And More
Undervalued companies, such as Net 1 UEPS Technologies and Juniper Pharmaceuticals, are those that trade at a price below their actual values. Investors can profit from the difference by investing in these stocks as the current market prices should eventually move towards their true values. If capital gains are what you’re after in your next investment, I’ve put together a list of undervalued stocks you may be interested in, based on the latest financial data from each company.
Net 1 UEPS Technologies, Inc. (NASDAQ:UEPS)
Net 1 UEPS Technologies, Inc. provides payment solutions, transaction processing services, and financial technologies to various industries in South Africa, South Korea, and internationally. Founded in 1989, and currently headed by CEO Herman Kotzé, the company now has 5,358 employees and with the company’s market cap sitting at USD $512.35M, it falls under the small-cap stocks category.
UEPS’s stock is now floating at around -62% under its real value of $23.98, at a price of $9.1, based on my discounted cash flow model. This discrepancy signals a potential opportunity to buy UEPS shares at a low price. In addition to this, UEPS’s PE ratio stands at around 6.8x relative to its it services peer level of 30x, indicating that relative to its competitors, you can purchase UEPS’s stock for a lower price right now. UEPS also has a healthy balance sheet, with near-term assets able to cover upcoming and long-term liabilities. Finally, its debt relative to equity is 5%, which has been dropping for the last couple of years revealing its capacity to reduce its debt obligations year on year.
Juniper Pharmaceuticals, Inc. (NASDAQ:JNP)
Juniper Pharmaceuticals, Inc., a women’s health therapeutic company, focuses on developing therapeutics that address unmet medical needs in women’s health. Founded in 1986, and headed by CEO Alicia Secor, the company size now stands at 139 people and with the market cap of USD $50.97M, it falls under the small-cap category.
JNP’s shares are now hovering at around -49% below its intrinsic value of $9.16, at a price tag of $4.65, according to my discounted cash flow model. This mismatch indicates a chance to invest in JNP at a discounted price. Also, JNP’s PE ratio is around 7.9x against its its pharmaceuticals peer level of 23.5x, suggesting that relative to its comparable company group, JNP can be bought at a cheaper price right now. JNP is also in good financial health, as short-term assets amply cover upcoming and long-term liabilities. It’s debt-to-equity ratio of 10% has over time, revealing JNP’s ability
NACCO Industries, Inc. (NYSE:NC)
NACCO Industries, Inc., through its subsidiaries, operates in the mining, small appliances, and specialty retail businesses worldwide. Started in 1913, and now led by CEO John Butler, the company now has 3,600 employees and with the company’s market cap sitting at USD $247.49M, it falls under the small-cap stocks category.
NC’s stock is currently trading at -71% under its real value of $135.31, at the market price of $38.85, based on my discounted cash flow model. The divergence signals an opportunity to buy NC shares at a low price. Also, NC’s PE ratio is trading at around 6.2x compared to its oil, gas and consumable fuels peer level of 20.8x, indicating that relative to other stocks in the industry, we can buy NC’s stock at a cheaper price today. NC is also a financially robust company, with current assets covering liabilities in the near term and over the long run. It’s debt-to-equity ratio of 28% has been dropping over the past couple of years demonstrating NC’s ability to pay down its debt.
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.
