Flavor Of The Month: Beazer Homes USA And More

Undervalued companies, such as Beazer Homes USA and Genex Pharmaceutical, trade at a price less than their true values. 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.

Beazer Homes USA, Inc. (NYSE:BZH)

Beazer Homes USA, Inc. operates as a homebuilder in the United States. Founded in 1985, and currently lead by Allan Merrill, the company currently employs 1,100 people and has a market cap of USD $615.78M, putting it in the small-cap group.

BZH’s shares are now trading at -44% under its actual level of $34.34, at a price of $19.21, based on its expected future cash flows. This mismatch indicates a chance to invest in BZH at a discounted price. What’s even more appeal is that BZH’s PE ratio stands at 19.2x relative to its consumer durables peer level of 17.4x, implying that relative to its comparable company group, BZH’s shares can be purchased for a lower price. BZH also has a healthy balance sheet, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. Finally, its debt relative to equity is 195%, which has been declining for the past few years demonstrating BZH’s ability to reduce its debt obligations year on year.

NYSE:BZH PE PEG Gauge Jan 2nd 18
NYSE:BZH PE PEG Gauge Jan 2nd 18

Genex Pharmaceutical Inc. (OTCPK:GENX)

Genex Pharmaceutical, Inc. produces and distributes Reconstituted Bone Xenograft (RBX) in the People’s Republic of China. The company size now stands at 86 people and with the company’s market cap sitting at USD $47.33K, it falls under the small-cap category.

GENX’s stock is currently floating at around -99% beneath its actual value of $0.21, at the market price of $0, based on its expected future cash flows. This price and value mismatch indicates a potential opportunity to buy the stock at a low price. Additionally, GENX’s PE ratio stands at 0.1x compared to its medical equipment peer level of 35.5x, implying that relative to other stocks in the industry, you can purchase GENX’s stock for a lower price right now. GENX is also in good financial health, as short-term assets amply cover upcoming and long-term liabilities.

OTCPK:GENX PE PEG Gauge Jan 2nd 18
OTCPK:GENX PE PEG Gauge Jan 2nd 18

Network-1 Technologies, Inc. (AMEX:NTIP)

Network-1 Technologies, Inc. develops, licenses, and protects intellectual property assets. Network-1 Technologies was established in 1990 and with the market cap of USD $57.91M, it falls under the small-cap stocks category.

NTIP’s shares are currently hovering at around -68% less than its true value of $7.4, at a price of $2.4, according to my discounted cash flow model. This price and value mismatch indicates a potential opportunity to buy the stock at a low price. Furthermore, NTIP’s PE ratio stands at 12x against its its communications peer level of 21.2x, suggesting that relative to other stocks in the industry, we can purchase NTIP’s shares for cheaper. NTIP is also robust in terms of financial health, as short-term assets amply cover upcoming and long-term liabilities. NTIP also has no debt on its balance sheet, which gives it headroom to grow and financial flexibility.

AMEX:NTIP PE PEG Gauge Jan 2nd 18
AMEX:NTIP PE PEG Gauge Jan 2nd 18

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.