Perry Ellis International And Other Great Cheap Stocks
Undervalued companies, such as Perry Ellis International and Carnival, are those that trade at a price below their actual values. There’s a few ways you can determine how much a company is actually worth. The most popular methods include discounting the company’s cash flows it is expected to create in the future, or comparing its price to its peers or the value of its assets. The discrepancy between the price and value means investors have an opportunity to buy shares at a discount. Below are the stocks I believe are undervalued on all criteria, based on their latest financial data.
Perry Ellis International, Inc. (NASDAQ:PERY)
Perry Ellis International, Inc. designs, sources, markets, and licenses apparel products and accessories. Formed in 1967, and run by CEO Oscar Feldenkreis, the company provides employment to 2,500 people and has a market cap of USD $417.14M, putting it in the small-cap group.
PERY’s stock is currently floating at around -26% under its true value of $35.95, at a price tag of US$26.72, based on its expected future cash flows. This discrepancy gives us a chance to invest in PERY at a discount. In addition to this, PERY’s PE ratio is trading at 15.48x compared to its Luxury peer level of, 22.53x implying that relative to its comparable company group, PERY’s shares can be purchased for a lower price. PERY is also a financially robust company, with short-term assets covering liabilities in the near future as well as in the long run. The stock’s debt-to equity ratio of 27.09% has been declining over time, signalling its ability to reduce its debt obligations year on year. Continue research on Perry Ellis International here.
Carnival Corporation (NYSE:CCL)
Carnival Corporation operates as a leisure travel and cruise company. Started in 1972, and now led by CEO Arnold Donald, the company employs 99,200 people and has a market cap of USD $46.69B, putting it in the large-cap category.
CCL’s stock is currently hovering at around -26% beneath its true level of $89.95, at the market price of US$66.15, based on its expected future cash flows. The discrepancy signals an opportunity to buy low. Also, CCL’s PE ratio stands at 18.33x compared to its Hospitality peer level of, 22.38x indicating that relative to its comparable company group, you can buy CCL’s shares at a cheaper price. CCL is also in good financial health, as short-term assets amply cover upcoming and long-term liabilities.
Interested in Carnival? Find out more here.
Chesapeake Granite Wash Trust (NYSE:CHKR)
Chesapeake Granite Wash Trust owns royalty interests in the oil and natural gas properties located in the Colony Granite Wash play in Washita County in the Anadarko Basin of Western Oklahoma. Chesapeake Granite Wash Trust was established in 2011 and with the market cap of USD $81.81M, it falls under the small-cap stocks category.
CHKR’s shares are currently floating at around -60% beneath its actual value of $4.41, at a price tag of US$1.75, based on my discounted cash flow model. The discrepancy signals an opportunity to buy low. Additionally, CHKR’s PE ratio is around 6.18x while its Oil and Gas peer level trades at, 13.11x indicating that relative to its comparable set of companies, CHKR can be bought at a cheaper price right now. CHKR is also robust in terms of financial health, with short-term assets covering liabilities in the near future as well as in the long run. CHKR has zero debt on its books as well, meaning it has no long term debt obligations to worry about. Continue research on Chesapeake Granite Wash Trust here.
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.
