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June Undervalued Stock Picks

Ramelius Resources and Virtus Health may be trading at prices below their likely values. This suggests that these stocks are undervalued, meaning we can benefit when the stock price moves to its true valuation. Investors can benefit from buying these companies while they are discounted, because they gain when the market prices move towards the stocks’ true values. Below is a list of stocks I’ve compiled that are deemed undervalued based on the latest financial data.

Ramelius Resources Limited (ASX:RMS)

Ramelius Resources Limited, together with its subsidiaries, engages in the exploration, mine development and operation, and production and sale of gold in Australia. The company employs 102 people and with the market cap of AUD A$295.13M, it falls under the small-cap stocks category.

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RMS’s shares are currently hovering at around -64% under its real value of $1.56, at a price of AU$0.56, based on its expected future cash flows. This mismatch signals an opportunity to buy RMS shares at a discount. Furthermore, RMS’s PE ratio is trading at around 16.05x relative to its index peer level of, 17.18x meaning that relative to its competitors, you can purchase RMS’s stock for a lower price right now. RMS is also strong in terms of its financial health, with short-term assets covering liabilities in the near future as well as in the long run. RMS also has no debt on its balance sheet, which gives it headroom to grow and financial flexibility. Interested in Ramelius Resources? Find out more here.

ASX:RMS PE PEG Gauge Jun 8th 18
ASX:RMS PE PEG Gauge Jun 8th 18

Virtus Health Limited (ASX:VRT)

Virtus Health Limited provides healthcare services in Australia, Ireland, Singapore, and Denmark. Formed in 2008, and currently run by Susan Channon, the company now has 1,200 employees and with the company’s market capitalisation at AUD A$437.32M, we can put it in the small-cap group.

VRT’s shares are now floating at around -34% less than its actual value of $8.25, at a price tag of AU$5.44, based on my discounted cash flow model. This discrepancy signals a potential opportunity to buy VRT shares at a low price. In terms of relative valuation, VRT’s PE ratio stands at 14.59x while its Healthcare peer level trades at, 19.97x indicating that relative to its peers, you can buy VRT for a cheaper price. VRT is also a financially healthy company, with near-term assets able to cover upcoming and long-term liabilities. The stock’s debt-to-equity ratio of 53.40% has been diminishing for the last couple of years signifying VRT’s capacity to pay down its debt. Interested in Virtus Health? Find out more here.

ASX:VRT PE PEG Gauge Jun 8th 18
ASX:VRT PE PEG Gauge Jun 8th 18

Capral Limited (ASX:CAA)

Capral Limited manufactures, markets, and distributes fabricated and semi-fabricated aluminum related products in Australia. Formed in 1936, and currently lead by Anthony Dragicevich, the company now has 900 employees and with the market cap of AUD A$74.44M, it falls under the small-cap category.

CAA’s shares are now hovering at around -22% under its actual worth of $0.2, at a price tag of AU$0.15, based on its expected future cash flows. The divergence signals an opportunity to buy CAA shares at a low price. In terms of relative valuation, CAA’s PE ratio is trading at 6.11x against its its Metals and Mining peer level of, 13.59x implying that relative to its peers, CAA’s shares can be purchased for a lower price. CAA is also a financially robust company, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. CAA has zero debt on its books as well, meaning it has no long term debt obligations to worry about. Continue research on Capral here.

ASX:CAA PE PEG Gauge Jun 8th 18
ASX:CAA PE PEG Gauge Jun 8th 18

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.