Stocks recently deemed undervalued include Third Point Reinsurance and Dolphin Entertainment, as they trade at a market price below their true valuations. 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.
Third Point Reinsurance Ltd. (NYSE:TPRE)
Third Point Reinsurance Ltd., through its subsidiaries, provides specialty property and casualty reinsurance products to insurance and reinsurance companies worldwide. Founded in 2011, and currently lead by James Bredahl, the company size now stands at 25 people and with the stock’s market cap sitting at USD $1.35B, it comes under the small-cap stocks category.
TPRE’s shares are now trading at -18% lower than its actual level of $15.99, at the market price of US$13.15, based on its expected future cash flows. This mismatch indicates a chance to invest in TPRE at a discounted price. What’s even more appeal is that TPRE’s PE ratio is trading at 9.06x compared to its Insurance peer level of, 15.15x suggesting that relative to its comparable company group, you can purchase TPRE’s stock for a lower price right now. TPRE is also strong in terms of its financial health, as short-term assets amply cover upcoming and long-term liabilities.
More detail on Third Point Reinsurance here.
Dolphin Entertainment, Inc. (NASDAQ:DLPN)
Dolphin Entertainment, Inc. produces and distributes online digital content in the United States. The company employs 87 people and with the company’s market capitalisation at USD $35.80M, we can put it in the small-cap category.
DLPN’s shares are now hovering at around -86% below its intrinsic level of $22.33, at a price of US$3.09, according to my discounted cash flow model. The discrepancy signals an opportunity to buy low. Also, DLPN’s PE ratio is currently around 12.11x compared to its Media peer level of, 15.7x indicating that relative to other stocks in the industry, you can buy DLPN’s shares at a cheaper price. DLPN is also robust in terms of financial health, with near-term assets able to cover upcoming and long-term liabilities. Finally, its debt relative to equity is 152.57%, which has been falling for the past few years revealing its capacity to pay down its debt. Dig deeper into Dolphin Entertainment here.
Athene Holding Ltd. (NYSE:ATH)
Athene Holding Ltd., a retirement services company, issues, reinsures, and acquires retirement savings products in the United States, the District of Columbia, and Germany. Formed in 2008, and now run by James Belardi, the company employs 1,125 people and with the stock’s market cap sitting at USD $9.33B, it comes under the mid-cap group.
ATH’s shares are currently floating at around -47% below its true level of $86.94, at the market price of US$46.29, based on my discounted cash flow model. The mismatch signals a potential chance to invest in ATH at a discounted price. Furthermore, ATH’s PE ratio is currently around 6.83x compared to its Insurance peer level of, 15.15x suggesting that relative to other stocks in the industry, we can invest in ATH at a lower price. ATH 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. It’s debt-to-equity ratio of 11.58% has been diminishing over the past couple of years showing its ability to reduce its debt obligations year on year. Dig deeper into Athene Holding 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.