Green Plains Partners and Tutor Perini are companies that are currently trading below what they’re actually worth. 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 established in 2015 and with the market cap of USD $543.98M, it falls under the small-cap stocks category.
GPP’s stock is now trading at -46% less than its intrinsic value of $32.44, at a price of US$17.40, based on my discounted cash flow model. The divergence signals an opportunity to buy GPP shares at a low price. Also, GPP’s PE ratio is around 9.59x against its its Oil and Gas peer level of, 13.16x meaning that relative to its competitors, we can invest in GPP at a lower price. GPP is also robust in terms of financial health, with current assets covering liabilities in the near term and over the long run. Interested in Green Plains Partners? Find out more 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 currently employs 10,061 people and with the company’s market capitalisation at USD $1.07B, we can put it in the small-cap group.
TPC’s shares are currently floating at around -42% below its true level of $35.66, at a price tag of US$20.65, according to my discounted cash flow model. The mismatch signals a potential chance to invest in TPC at a discounted price. What’s even more appeal is that TPC’s PE ratio is trading at 6.91x relative to its Construction peer level of, 17.18x implying that relative to its comparable company group, we can invest in TPC at a lower price. TPC is also in good financial health, as short-term assets amply cover upcoming and long-term liabilities. It’s debt-to-equity ratio of 43.19% has been reducing for the last couple of years indicating TPC’s ability to reduce its debt obligations year on year. More on 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. Established in 1959, and currently run by Roberto García-Rodríguez, the company provides employment to 3,420 people and with the stock’s market cap sitting at USD $668.88M, it comes under the small-cap group.
GTS’s stock is currently floating at around -87% lower than its intrinsic level of $222.35, at a price of US$28.35, based on its expected future cash flows. signalling an opportunity to buy the stock at a low price. Also, GTS’s PE ratio is trading at around 12.49x against its its Healthcare peer level of, 20.37x meaning that relative to its peers, we can buy GTS’s stock at a cheaper price today. GTS is also strong financially, with current assets covering liabilities in the near term and over the long run. The stock’s debt-to-equity ratio of 3.73% has been diminishing over time, revealing its ability to reduce its debt obligations year on year. More on Triple-S Management here.
For more financially sound, undervalued companies to add to your portfolio, explore this interactive list of undervalued stocks.