Stocks, such as Francesca’s Holdings and Precicion Trim, are trading at a value below what they may actually be worth. Investors can profit from the difference by investing in these stocks as the current market prices should eventually move towards their true values. If capital gains are what you’re after in your next investment, I’ve put together a list of undervalued stocks you may be interested in, based on the latest financial data from each company.
Francesca’s Holdings Corporation (NASDAQ:FRAN)
Francesca’s Holdings Corporation, through its subsidiaries, operates a chain of retail boutiques. Established in 1999, and currently run by Steven Lawrence, the company currently employs 3,994 people and with the market cap of USD $199.71M, it falls under the small-cap group.
FRAN’s shares are now trading at -52% lower than its real value of $11.43, at the market price of $5.52, based on my discounted cash flow model. signalling an opportunity to buy the stock at a low price. Moreover, FRAN’s PE ratio is around 7.6x relative to its specialty retail peer level of 18.9x, meaning that relative to its peers, FRAN can be bought at a cheaper price right now. FRAN is also strong financially, as short-term assets amply cover upcoming and long-term liabilities. FRAN also has no debt on its balance sheet, which gives it headroom to grow and financial flexibility. More detail on Francesca’s Holdings here.
Precicion Trim Inc (OTCPK:PRTR)
Precicion Trim, Inc. operates in the machine automation and development field. Precicion Trim is headed by CEO Yan Feng. With the stock’s market cap sitting at USD $730.54K, it comes under the small-cap stocks category
PRTR’s shares are currently floating at around -98% under its true level of $125.19, at a price of $2.44, based on its expected future cash flows. signalling an opportunity to buy the stock at a low price. In addition to this, PRTR’s PE ratio stands at around 0.1x compared to its commercial services peer level of 20x, meaning that relative to its peers, PRTR’s shares can be purchased for a lower price. PRTR is also a financially robust company, as short-term assets amply cover upcoming and long-term liabilities.
More on Precicion Trim here.
DSW Inc. (NYSE:DSW)
DSW Inc., together with its subsidiaries, operates as a branded footwear and accessories retailer in the United States. Established in 1917, and run by CEO Roger Rawlins, the company currently employs 12,600 people and with the stock’s market cap sitting at USD $1.57B, it comes under the small-cap group.
DSW’s stock is currently trading at -39% beneath its real value of $31.88, at a price of $19.6, according to my discounted cash flow model. This mismatch indicates a potential opportunity to buy low. In addition to this, DSW’s PE ratio stands at 18.2x compared to its specialty retail peer level of 18.9x, meaning that relative to its competitors, DSW can be bought at a cheaper price right now. DSW is also a financially robust company, with current assets covering liabilities in the near term and over the long run. DSW also has no debt on its balance sheet, which gives it headroom to grow and financial flexibility. More on DSW 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.