Are you a value investor interested in lower priced stocks? We ran a screen with you in mind.
The stocks listed below meet all of the following criteria:
- market cap above $300 million
- price under $5
- undervalued by the Levered Free Cash Flow to Enterprise Value Ratio (LFCF/EV)
The LFCF is the cash a firm has left over after it pays off its debts, plus interest. This is important for dividend yields and for sustaining the day-to-day operations of the company. The EV is simply another way to measure a company’s value, similar to a Market Cap.
The higher the ratio of these two values, the more a company is thought to be undervalued. For our purposes, ratios above 10% appear undervalued.
Here’s the list. Do you think these companies have room for growth?
Interactive chart: Use the Compare-O-Matic to compare market caps for the stock mention below
1. Advanced Micro Devices, Inc. (AMD, Earnings, Analysts, Financials): Operates as a semiconductor company in the United States, Japan, China, and Europe. Market cap at $2.84B, most recent closing price at $4.05. Levered free cash flow at $396.62M vs. enterprise value at $3.46B (implies a LFCF/EV ratio at 11.46%).
2. Aurizon Mines Ltd. (AZK, Earnings, Analysts, Financials): Engages in the acquisition, exploration, development, and operation of gold properties in North America. Market cap at $736.51M, most recent closing price at $4.47. Levered free cash flow at $59.82M vs. enterprise value at $510.12M (implies a LFCF/EV ratio at 11.73%).
3. Crown Media Holdings Inc. (CRWN, Earnings, Analysts, Financials): Crown Media Holdings, Inc., through its subsidiary, Crown Media United States, LLC, owns and operates pay television channels in the United States and Puerto Rico. Market cap at $658.21M, most recent closing price at $1.83. Levered free cash flow at $152.20M vs. enterprise value at $1.11B (implies a LFCF/EV ratio at 13.71%).
4. Harmonic Inc. (HLIT, Earnings, Analysts, Financials): Designs, manufactures, and sells video products and system solutions that enable service providers to deliver broadcast and on-demand services. Market cap at $527.89M, most recent closing price at $4.40. Levered free cash flow at $58.64M vs. enterprise value at $334.90M (implies a LFCF/EV ratio at 17.51%).
5. MCG Capital Corporation (MCGC, Earnings, Analysts, Financials): MCG Capital Corporation is a private equity firm specializing in investments in middle market companies. Market cap at $337.03M, most recent closing price at $4.57. Levered free cash flow at $82.69M vs. enterprise value at $593.21M (implies a LFCF/EV ratio at 13.94%).
6. Mueller Water Products, Inc. (MWA, Earnings, Analysts, Financials): Mueller Water Products, Inc. manufactures and markets a range of water infrastructure, flow control, and piping component system products for use in water distribution networks and water treatment facilities in the United States and Canada. Market cap at $621.98M, most recent closing price at $3.98. Levered free cash flow at $134.51M vs. enterprise value at $1.19B (implies a LFCF/EV ratio at 11.3%).
7. Office Depot, Inc. (ODP, Earnings, Analysts, Financials): Office Depot, Inc., together with its subsidiaries, supplies office products and services. Market cap at $468.3M, most recent closing price at $1.65. Levered free cash flow at $138.12M vs. enterprise value at $694.72M (implies a LFCF/EV ratio at 19.88%).
8. Portugal Telecom SGPS SA (PT, Earnings, Analysts, Financials): Provides telecommunications services in Portugal, Brazil, and Africa. Market cap at $3.92B, most recent closing price at $4.35. Levered free cash flow at $2.70B vs. enterprise value at $12.12B (implies a LFCF/EV ratio at 22.28%).
9. Partner Communications Company Ltd. (PTNR, Earnings, Analysts, Financials): Provides various telecommunications services in Israel. Market cap at $536.99M, most recent closing price at $3.42. Levered free cash flow at $242.40M vs. enterprise value at $1.66B (implies a LFCF/EV ratio at 14.6%).
10. Rambus Inc. (RMBS, Earnings, Analysts, Financials): Engages in the creation, design, development, and licensing of patented innovations, technologies, and architectures to digital electronics products and systems. Market cap at $518.08M, most recent closing price at $4.68. Levered free cash flow at $67.34M vs. enterprise value at $403.03M (implies a LFCF/EV ratio at 16.71%).
11. Tellabs Inc. (TLAB, Earnings, Analysts, Financials): Engages in designing and marketing equipment and services for communication-service providers in the United States and internationally. Market cap at $1.2B, most recent closing price at $3.30. Levered free cash flow at $36.46M vs. enterprise value at $284.56M (implies a LFCF/EV ratio at 12.81%).
(Data sourced from Yahoo! Finance. Written by Ryan Horch)
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Analyze These Ideas: Getting Started
Dig Deeper: Access Company Snapshots, Charts, Filings
- Advanced Micro Devices, Inc. (AMD, Chart, Download SEC Filings)
- Aurizon Mines Ltd. (AZK, Chart, Download SEC Filings)
- Crown Media Holdings Inc. (CRWN, Chart, Download SEC Filings)
- Harmonic Inc. (HLIT, Chart, Download SEC Filings)
- MCG Capital Corporation (MCGC, Chart, Download SEC Filings)
- Mueller Water Products, Inc. (MWA, Chart, Download SEC Filings)
- Office Depot, Inc. (ODP, Chart, Download SEC Filings)
- Portugal Telecom SGPS SA (PT, Chart, Download SEC Filings)
- Partner Communications Company Ltd. (PTNR, Chart, Download SEC Filings)
- Rambus Inc. (RMBS, Chart, Download SEC Filings)
- Tellabs Inc. (TLAB, Chart, Download SEC Filings)
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