Yahoo Finance Top 3 Undervalued Stocks For The Month
Recent undervalued companies based on their current market price include UMS Holdings and Memtech International. 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.
UMS Holdings Limited (SGX:558)
UMS Holdings Limited, an investment holding company, provides high precision front-end semiconductor components, and electromechanical assembly and final testing services. Established in 2001, and headed by CEO Andy Luong, the company provides employment to 491 people and with the market cap of SGD SGD442.55M, it falls under the small-cap group.
558’s stock is now hovering at around -40% under its real value of $1.38, at a price of S$0.82, according to my discounted cash flow model. The difference between value and price signals a potential opportunity to buy 558 shares at a discount. Also, 558’s PE ratio is around 8.47x while its Semiconductor peer level trades at, 10.87x implying that relative to its comparable set of companies, 558’s shares can be purchased for a lower price. 558 is also a financially healthy company, with near-term assets able to cover upcoming and long-term liabilities.
More on UMS Holdings here.
Memtech International Ltd. (SGX:BOL)
Memtech International Ltd., an investment holding company, manufactures and sells mold, rubber, and plastic components for automotive, industrial and medical, mobile communications, and consumer digital products in the People’s Republic of China, the United States, Japan, and internationally. Memtech International was founded in 2003 and has a market cap of SGD SGD162.01M, putting it in the small-cap category.
BOL’s shares are now trading at -21% under its true level of $1.46, at the market price of S$1.15, based on its expected future cash flows. This discrepancy signals a potential opportunity to buy BOL shares at a low price. Additionally, BOL’s PE ratio is around 8.66x while its Electronic peer level trades at, 9.05x meaning that relative to its competitors, we can buy BOL’s stock at a cheaper price today. BOL 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 3.75% has been falling for the past few years showing its capability to reduce its debt obligations year on year. Continue research on Memtech International here.
HL Global Enterprises Limited (SGX:AVX)
HL Global Enterprises Limited, an investment holding company, operates in the hospitality operations and property development activities in Malaysia and the People’s Republic of China. HL Global Enterprises was founded in 1961 and has a market cap of SGD SGD41.32M, putting it in the small-cap category.
AVX’s stock is now hovering at around -61% below its true value of $1.13, at a price of S$0.44, based on my discounted cash flow model. This price and value mismatch indicates a potential opportunity to buy the stock at a low price. In terms of relative valuation, AVX’s PE ratio is trading at 0.48x compared to its Hospitality peer level of, 15.32x meaning that relative to its competitors, AVX’s shares can be purchased for a lower price. AVX 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. The stock’s debt-to-equity ratio of 2.26% has been diminishing over time, signalling its ability to pay down its debt. Dig deeper into HL Global Enterprises 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.
