Companies, such as Green Plains Partners, trading at a market price below their true values are considered to be undervalued. Investors can determine how much a company is worth based on how much money they are expected to make in the future, or compared to the value of their peers. The list I’ve put together below are of stocks that compare favourably on all criteria, which potentially makes them good investments if you believe the price should eventually reflect the stock’s actual value.
Green Plains Partners LP (NASDAQ:GPP)
Green Plains Partners LP provides fuel storage and transportation services. Green Plains Partners was established in 2015 and has a market cap of USD $567.84M, putting it in the small-cap stocks category.
GPP’s stock is now trading at -49% beneath its actual level of $35.7, at the market price of US$18.05, based on its expected future cash flows. This discrepancy gives us a chance to invest in GPP at a discount. In addition to this, GPP’s PE ratio stands at around 9.95x relative to its Oil and Gas peer level of, 12.96x meaning that relative to its comparable set of companies, you can purchase GPP’s stock for a lower price right now. GPP is also in great financial shape, with current assets covering liabilities in the near term and over the long run. Continue research on Green Plains Partners here.
Natural Grocers by Vitamin Cottage, Inc. (NYSE:NGVC)
Natural Grocers by Vitamin Cottage, Inc., together with its subsidiaries, retails natural and organic groceries, and dietary supplements in the United States. Established in 1955, and currently run by , the company currently employs 3,013 people and with the market cap of USD $156.44M, it falls under the small-cap stocks category.
NGVC’s stock is now trading at -35% less than its actual worth of $11.55, at the market price of US$7.46, according to my discounted cash flow model. This discrepancy gives us a chance to invest in NGVC at a discount. Moreover, NGVC’s PE ratio stands at 16.71x compared to its Consumer Retailing peer level of, 22.01x implying that relative to its comparable company group, we can invest in NGVC at a lower price. NGVC also has a healthy balance sheet, as short-term assets amply cover upcoming and long-term liabilities.
More on Natural Grocers by Vitamin Cottage here.
TrueBlue, Inc. (NYSE:TBI)
TrueBlue, Inc. provides contingent staffing, recruitment process outsourcing, and contingent staffing management services in the United States, Canada, and Puerto Rico. Formed in 1985, and currently run by Steven Cooper, the company employs 5,500 people and with the market cap of USD $1.09B, it falls under the small-cap stocks category.
TBI’s stock is now hovering at around -63% less than its value of $75.72, at a price tag of US$27.95, based on my discounted cash flow model. This discrepancy signals a potential opportunity to buy TBI shares at a low price. Also, TBI’s PE ratio is around 20.77x relative to its Professional Services peer level of, 22.14x meaning that relative to its competitors, we can buy TBI’s stock at a cheaper price today. TBI is also strong in terms of its financial health, as near-term assets sufficiently cover liabilities in the near future as well as in the long run.
More detail on TrueBlue here.
Or create your own list by filtering companies based on fundamentals such as intrinsic discount, health score and future outlook using this free stock screener.
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.