Recent undervalued companies based on their current market price include Appliance Recycling Centers of America and Tyson Foods. 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.
Appliance Recycling Centers of America, Inc. (NASDAQ:ARCI)
Appliance Recycling Centers of America, Inc., together with its subsidiaries, sells and recycles household appliances through a chain of company-owned retail stores under the ApplianceSmart name. Established in 1976, and currently headed by CEO Tony Isaac, the company size now stands at 441 people and with the company’s market capitalisation at USD $5.64M, we can put it in the small-cap stocks category.
ARCI’s shares are now hovering at around -32% under its true level of $1.21, at a price tag of US$0.82, based on its expected future cash flows. signalling an opportunity to buy the stock at a low price. Furthermore, ARCI’s PE ratio is currently around 1.08x compared to its Specialty Retail peer level of, 19.25x meaning that relative to its comparable company group, ARCI’s shares can be purchased for a lower price. ARCI 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 15.07% has been reducing over the past couple of years demonstrating its capacity to pay down its debt. Dig deeper into Appliance Recycling Centers of America here.
Tyson Foods, Inc. (NYSE:TSN)
Tyson Foods, Inc., together with its subsidiaries, operates as a food company worldwide. Established in 1935, and headed by CEO Thomas Hayes, the company employs 122,000 people and has a market cap of USD $25.09B, putting it in the large-cap stocks category.
TSN’s stock is now trading at -36% under its intrinsic value of $106.67, at the market price of US$68.25, based on my discounted cash flow model. This discrepancy gives us a chance to invest in TSN at a discount. Additionally, TSN’s PE ratio is trading at 8.96x against its its Food peer level of, 18.45x implying that relative to its comparable company group, TSN can be bought at a cheaper price right now. TSN is also a financially healthy company, with near-term assets able to cover upcoming and long-term liabilities. Interested in Tyson Foods? Find out more here.
Federated Investors, Inc. (NYSE:FII)
Federated Investors, Inc. is a publicly owned asset management holding company. Established in 1955, and headed by CEO John Donahue, the company size now stands at 1,441 people and with the company’s market capitalisation at USD $2.49B, we can put it in the mid-cap stocks category.
FII’s stock is now trading at -41% under its actual value of $41.61, at the market price of US$24.53, according to my discounted cash flow model. signalling an opportunity to buy the stock at a low price. Furthermore, FII’s PE ratio is trading at around 8.22x while its Capital Markets peer level trades at, 16.41x indicating that relative to its comparable set of companies, FII’s stock can be bought at a cheaper price. FII is also in good financial health, as short-term assets amply cover upcoming and long-term liabilities. It’s debt-to-equity ratio of 19.92% has been diminishing over time, demonstrating its capability to pay down its debt. More detail on Federated Investors here.
For more financially sound, undervalued companies to add to your portfolio, explore this interactive list of undervalued stocks.