Yahoo Finance June Undervalued Stock Picks
Peking University Resources (Holdings) and Easy Repay Finance & Investment are two of the stocks I have identified as undervalued. This means their current share prices are trading at levels less than what the companies are actually worth. Investors can benefit from buying these companies while they are discounted, because they gain when the market prices move towards the stocks’ true values. Below is a list of stocks I’ve compiled that are deemed undervalued based on the latest financial data.
Peking University Resources (Holdings) Company Limited (SEHK:618)
Peking University Resources (Holdings) Company Limited, together with its subsidiaries, distributes information products, and invests in and develops properties in the People’s Republic of China. The company size now stands at 1435 people and with the company’s market cap sitting at HKD HK$2.28B, it falls under the mid-cap category.
618’s shares are currently floating at around -96% below its value of ¥9.61, at a price of HK$0.35, according to my discounted cash flow model. This mismatch indicates a potential opportunity to buy low. What’s even more appeal is that 618’s PE ratio stands at around 5.21x while its Electronic peer level trades at, 11.81x suggesting that relative to other stocks in the industry, 618’s stock can be bought at a cheaper price. 618 is also strong in terms of its financial health, as near-term assets sufficiently cover liabilities in the near future as well as in the long run.
More detail on Peking University Resources (Holdings) here.
Easy Repay Finance & Investment Limited (SEHK:8079)
Easy Repay Finance & Investment Limited engages in money lending, financial instruments and quoted shares investment, and retail and wholesale businesses in Hong Kong and Macau. The company employs 105 people and has a market cap of HKD HK$91.94M, putting it in the small-cap group.
8079’s stock is currently floating at around -65% less than its actual level of $1.2, at the market price of HK$0.42, based on my discounted cash flow model. The difference between value and price signals a potential opportunity to buy 8079 shares at a discount. Furthermore, 8079’s PE ratio is trading at 4.62x relative to its Consumer Finance peer level of, 7.82x indicating that relative to its competitors, you can purchase 8079’s stock for a lower price right now. 8079 is also in good financial health, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. The stock’s debt-to-equity ratio of 1.61% has been declining over time, indicating 8079’s capability to reduce its debt obligations year on year. More on Easy Repay Finance & Investment here.
UBA Investments Limited (SEHK:768)
UBA Investments Limited operates as an investment holding company in Hong Kong. UBA Investments was founded in 1999 and with the company’s market cap sitting at HKD HK$90.08M, it falls under the small-cap stocks category.
768’s stock is now floating at around -52% under its true level of $0.18, at the market price of HK$0.085, according to my discounted cash flow model. This price and value mismatch indicates a potential opportunity to buy the stock at a low price. What’s even more appeal is that 768’s PE ratio stands at 6.16x compared to its Capital Markets peer level of, 12.68x implying that relative to its comparable set of companies, we can purchase 768’s shares for cheaper. 768 is also in great financial shape, with short-term assets covering liabilities in the near future as well as in the long run. 768 also has no debt on its balance sheet, which gives it headroom to grow and financial flexibility. More on UBA Investments 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.
