Yahoo Finance DWS And Other Top Cheap Stocks
DWS and JC International Group 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 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.
DWS Limited (ASX:DWS)
DWS Limited provides information technology services to corporations and government bodies in Australia. Founded in 1991, and headed by CEO Danny Wallis, the company employs 600 people and with the company’s market capitalisation at AUD A$167.43M, we can put it in the small-cap group.
DWS’s stock is now hovering at around -90% under its value of $13.31, at the market price of AU$1.27, according to my discounted cash flow model. signalling an opportunity to buy the stock at a low price. Additionally, DWS’s PE ratio is currently around 9.07x relative to its IT peer level of, 23.86x implying that relative to other stocks in the industry, you can buy DWS for a cheaper price. DWS is also strong in terms of its financial health, as current assets can cover liabilities in the near term and over the long run.
More on DWS here.
JC International Group Limited (ASX:JCI)
JC International Group Limited provides workforce subcontracting solutions for the construction industry in the People’s Republic of China. Formed in 2003, and run by CEO Yonghong Tang, the company now has 1,555 employees and has a market cap of AUD A$32.72M, putting it in the small-cap category.
JCI’s shares are currently hovering at around -75% below its true level of $2.13, at a price of AU$0.53, based on its expected future cash flows. The discrepancy signals an opportunity to buy low. Also, JCI’s PE ratio is trading at around 4.37x relative to its Construction peer level of, 16.8x suggesting that relative to its comparable set of companies, we can buy JCI’s stock at a cheaper price today. JCI is also in great financial shape, as near-term assets sufficiently cover liabilities in the near future as well as in the long run.
Continue research on JC International Group here.
BlueScope Steel Limited (ASX:BSL)
BlueScope Steel Limited manufactures and sells metal coated and painted steel building products in Australia, Asia, North America, New Zealand, and internationally. Established in 1885, and currently headed by CEO Mark Vassella, the company now has 16,000 employees and with the company’s market capitalisation at AUD A$9.35B, we can put it in the mid-cap stocks category.
BSL’s shares are now floating at around -80% less than its intrinsic value of $84.51, at a price tag of AU$17.23, based on its expected future cash flows. signalling an opportunity to buy the stock at a low price. Moreover, BSL’s PE ratio stands at around 12.23x relative to its Metals and Mining peer level of, 13.44x meaning that relative to other stocks in the industry, you can buy BSL for a cheaper price. BSL is also robust in terms of financial health, as current assets can cover liabilities in the near term and over the long run. The stock’s debt-to-equity ratio of 18.53% has been falling for the last couple of years demonstrating its capability to pay down its debt. More on BlueScope Steel 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.
