Yahoo Finance Top Cheap Stocks in June
Fairfax Financial Holdings and Genesis Land Development are companies that are currently trading below what they’re actually worth. 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.
Fairfax Financial Holdings Limited (TSX:FFH)
Fairfax Financial Holdings Limited, through its subsidiaries, provides property and casualty insurance and reinsurance, and investment management services in the United States, Canada, Asia, and internationally. Formed in 1951, and currently lead by V. Watsa, the company employs 23,576 people and with the company’s market cap sitting at CAD CA$21.31B, it falls under the large-cap category.
FFH’s stock is currently hovering at around -49% below its true value of $1521.77, at a price of CA$775.19, based on my discounted cash flow model. This mismatch indicates a potential opportunity to buy low. Moreover, FFH’s PE ratio is trading at around 6.79x against its its Insurance peer level of, 14.47x suggesting that relative to its competitors, you can buy FFH for a cheaper price. FFH is also strong financially, as near-term assets sufficiently cover liabilities in the near future as well as in the long run.
Interested in Fairfax Financial Holdings? Find out more here.
Genesis Land Development Corp. (TSX:GDC)
Genesis Land Development Corp. engages in the acquisition, development, and sale of land, residential lots, and homes primarily in the greater Calgary area, Canada. Formed in 1991, and now run by Stephen Griggs, the company now has 58 employees and with the stock’s market cap sitting at CAD CA$173.01M, it comes under the small-cap group.
GDC’s stock is now hovering at around -74% under its real value of $15.27, at a price of CA$4.00, based on my discounted cash flow model. The mismatch signals a potential chance to invest in GDC at a discounted price. Moreover, GDC’s PE ratio is trading at 10.19x relative to its Real Estate peer level of, 10.39x meaning that relative to its comparable set of companies, we can invest in GDC at a lower price. GDC is also in great financial shape, with near-term assets able to cover upcoming and long-term liabilities. It’s debt-to-equity ratio of 9.88% has been reducing over time, revealing GDC’s capacity to pay down its debt. Dig deeper into Genesis Land Development here.
HTC Purenergy Inc. (TSXV:HTC)
HTC Purenergy Inc. develops, aggregates, and commercializes proprietary technologies relating to CO2 capture and CO2 solvent recovery in Canada. HTC Purenergy is currently led by CEO Lionel Kambeitz. With the stock’s market cap sitting at CAD CA$4.86M, it falls under the small-cap category
HTC’s shares are currently floating at around -44% below its actual value of $0.27, at a price tag of CA$0.15, 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, HTC’s PE ratio stands at 2.81x while its Chemicals peer level trades at, 19.72x meaning that relative to its comparable company group, you can buy HTC for a cheaper price. HTC is also a financially healthy company, with near-term assets able to cover upcoming and long-term liabilities.
Dig deeper into HTC Purenergy 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.
