Green Plains Partners and Tutor Perini may be trading at prices below their likely values. This suggests that these stocks are undervalued, meaning we can benefit when the stock price moves to its true valuation. There’s a few ways you can value a company. 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. Analysing the most recent financial data, I’ve created a list of companies that compare favourably in all criteria, making them potentially good investments.
Green Plains Partners LP (NASDAQ:GPP)
Green Plains Partners LP provides fuel storage and transportation services. Green Plains Partners was started in 2015 and has a market cap of USD $543.98M, putting it in the small-cap stocks category.
GPP’s shares are currently trading at -46% below its true level of $32.44, at a price tag of US$17.40, based on my discounted cash flow model. This mismatch signals an opportunity to buy GPP shares at a discount. Moreover, GPP’s PE ratio stands at around 9.59x while its Oil and Gas peer level trades at, 13.16x indicating that relative to its comparable set of companies, you can buy GPP for a cheaper price. GPP is also strong in terms of its financial health, with short-term assets covering liabilities in the near future as well as in the long run. Continue research on Green Plains Partners here.
Tutor Perini Corporation (NYSE:TPC)
Tutor Perini Corporation, a construction company, provides diversified general contracting, construction management, and design-build services to private customers and public agencies worldwide. Formed in 1894, and now run by Ronald Tutor, the company size now stands at 10,061 people and with the market cap of USD $1.07B, it falls under the small-cap group.
TPC’s stock is currently trading at -42% below its value of $35.66, at a price tag of US$20.65, based on its expected future cash flows. This mismatch signals an opportunity to buy TPC shares at a discount. In terms of relative valuation, TPC’s PE ratio stands at 6.91x compared to its Construction peer level of, 17.18x suggesting that relative to its competitors, we can invest in TPC at a lower price. TPC is also a financially robust company, with near-term assets able to cover upcoming and long-term liabilities. The stock’s debt-to-equity ratio of 43.19% has been falling over the past couple of years signalling TPC’s capability to pay down its debt. Dig deeper into Tutor Perini here.
Triple-S Management Corporation (NYSE:GTS)
Triple-S Management Corporation, through its subsidiaries, provides a portfolio of managed care and related products in the commercial, Medicare, and Medicaid markets in Puerto Rico, the United States. Founded in 1959, and run by CEO Roberto García-Rodríguez, the company currently employs 3,420 people and has a market cap of USD $668.88M, putting it in the small-cap group.
GTS’s stock is now trading at -87% lower than its true value of $222.35, at the market price of US$28.35, based on its expected future cash flows. signalling an opportunity to buy the stock at a low price. Furthermore, GTS’s PE ratio is trading at around 12.49x relative to its Healthcare peer level of, 20.37x indicating that relative to other stocks in the industry, you can purchase GTS’s stock for a lower price right now. GTS is also in good financial health, with near-term assets able to cover upcoming and long-term liabilities. It’s debt-to-equity ratio of 3.73% has been diminishing for the past few years indicating GTS’s capability to reduce its debt obligations year on year. Interested in Triple-S Management? Find out more 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.