Top Undervalued Tech Stocks To Buy
Natural Beauty Bio-Technology and Tianyun International Holdings are consumer staple companies that are currently trading below what they’re actually worth. 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.
Natural Beauty Bio-Technology Limited (SEHK:157)
Natural Beauty Bio-Technology Limited, an investment holding company, manufactures and sells skin care, beauty, aroma-therapeutic, and health supplements and make-up products under the Natural Beauty brand. Formed in 1976, and currently run by Wen-Chung Hsiao, the company size now stands at 538 people and with the company’s market cap sitting at HKD HK$1.22B, it falls under the small-cap group.
157’s shares are now floating at around -53% under its actual level of $1.3, at a price tag of HK$0.61, based on my discounted cash flow model. This mismatch signals an opportunity to buy 157 shares at a discount. Moreover, 157’s PE ratio is trading at 11.59x while its Personal Products peer level trades at, 18.23x indicating that relative to its comparable company group, 157 can be bought at a cheaper price right now. 157 is also strong in terms of its financial health, as short-term assets amply cover upcoming and long-term liabilities. 157 also has no debt on its balance sheet, which gives it headroom to grow and financial flexibility. Continue research on Natural Beauty Bio-Technology here.
Tianyun International Holdings Limited (SEHK:6836)
Tianyun International Holdings Limited, an investment holding company, produces and sells processed fruit products; and trades fresh fruits in the People’s Republic of China and internationally. Started in 2003, and currently headed by CEO Ziyuan Yang, the company employs 624 people and with the company’s market capitalisation at HKD HK$1.26B, we can put it in the small-cap category.
6836’s shares are currently hovering at around -74% less than its real value of ¥4.89, at a price of HK$1.29, based on its expected future cash flows. This difference in price and value gives us a chance to buy low. Additionally, 6836’s PE ratio is trading at 8.34x relative to its Food peer level of, 16.81x indicating that relative to its comparable set of companies, 6836’s stock can be bought at a cheaper price. 6836 is also robust in terms of financial health, with near-term assets able to cover upcoming and long-term liabilities. The stock’s debt-to-equity ratio of 21.60% has been diminishing for the past few years showing 6836’s capacity to pay down its debt. Continue research on Tianyun International Holdings here.
Four Seas Mercantile Holdings Limited (SEHK:374)
Four Seas Mercantile Holdings Limited, an investment holding company, manufactures and trades in snack foods, confectionery, beverages, frozen foods, noodles, and ham and ham-related products in Hong Kong and Mainland China. Started in 1971, and currently lead by Mei Yung Wu, the company size now stands at 3,800 people and has a market cap of HKD HK$1.29B, putting it in the small-cap stocks category.
374’s stock is currently floating at around -30% lower than its actual level of $4.76, at a price tag of HK$3.35, based on its expected future cash flows. This difference in price and value gives us a chance to buy low. Furthermore, 374’s PE ratio is trading at around 3.73x relative to its Food peer level of, 16.81x meaning that relative to its comparable company group, we can purchase 374’s shares for cheaper. 374 is also a financially robust company, with current assets covering liabilities in the near term and over the long run. The stock’s debt-to-equity ratio of 47.97% has been reducing for the last couple of years signifying its capability to reduce its debt obligations year on year. Interested in Four Seas Mercantile Holdings? 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.
