Yahoo Finance Top 3 Cheap Stocks For The Month
Companies, such as Ouhua Energy Holdings, are deemed to be undervalued because their shares are currently trading below 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.
Ouhua Energy Holdings Limited (SGX:AJ2)
Ouhua Energy Holdings Limited, an investment holding company, engages in the import, processing, and wholesale of liquefied petroleum gas (LPG) in the People’s Republic of China. Ouhua Energy Holdings was started in 2000 and with the company’s market capitalisation at SGD SGD20.31M, we can put it in the small-cap stocks category.
AJ2’s shares are currently floating at around -91% under its intrinsic value of ¥0.61, at the market price of S$0.053, according to my discounted cash flow model. This discrepancy signals a potential opportunity to buy AJ2 shares at a low price. In terms of relative valuation, AJ2’s PE ratio is trading at 11.61x against its its index peer level of, 13.49x suggesting that relative to its competitors, you can buy AJ2’s shares at a cheaper price. AJ2 is also a financially robust company, 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 98.53% has been dropping over the past couple of years signifying AJ2’s capacity to pay down its debt. More on Ouhua Energy Holdings here.
AnAn International Limited (SGX:Y35)
AnAn International Limited, an investment holding company, engages in the trading of petrochemical, and fuel oil and petroleum products. The company was established in 2004 and with the stock’s market cap sitting at SGD SGD33.87M, it comes under the small-cap group.
Y35’s shares are now trading at -94% lower than its actual worth of $0.12, at the market price of S$0.008, based on its expected future cash flows. signalling an opportunity to buy the stock at a low price. What’s even more appeal is that Y35’s PE ratio stands at 2.32x compared to its Oil and Gas peer level of, 9.11x meaning that relative to its comparable company group, Y35’s shares can be purchased for a lower price. Y35 is also a financially robust company, with near-term assets able to cover upcoming and long-term liabilities. Finally, its debt relative to equity is 17.37%, which has been diminishing over time, indicating Y35’s capability to pay down its debt. More detail on AnAn International here.
Oxley Holdings Limited (SGX:5UX)
Oxley Holdings Limited, an investment holding company, engages in property investment and development, and project management activities in Singapore, the United Kingdom, Ireland, Cambodia, Malaysia, Indonesia, China, Japan, Myanmar, Australia, and Cyprus. Oxley Holdings was formed in 2010 and has a market cap of SGD SGD1.74B, putting it in the small-cap stocks category.
5UX’s shares are now trading at -78% lower than its true level of $1.97, at the market price of S$0.43, based on its expected future cash flows. This difference in price and value gives us a chance to buy low. Moreover, 5UX’s PE ratio is trading at around 8.83x compared to its Real Estate peer level of, 9.85x indicating that relative to its comparable company group, we can invest in 5UX at a lower price. 5UX is also robust in terms of financial health, as short-term assets amply cover upcoming and long-term liabilities. The stock’s debt-to-equity ratio of 254.29% has been dropping over the past couple of years signalling its ability to pay down its debt. More on Oxley Holdings 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.
