Below book value stocks are not thought of by Wall Street analysts as having much to do (if anything) with growth, this era’s most sought after quality. A company that trades for a share price less than current assets minus current liabilities is just not as much fun as a company that mentions “artificial intelligence” at least a dozen times in a quarterly report.
Nevertheless, value stocks continue to be pursued by those few money managers who took notes while studying the Benjamin Graham classics The Intelligent Investor and Security Analysis. Other key metrics are definitely worth considering besides just book value but it’s a good start for those conducting research using the old school valuation methods.
With that in mind, here are three stocks that may qualify as interesting subjects for more thorough analysis.
4 Below Book Value Stocks Paying Dividends
Air Lease Group (NYSE: AL)
The stock is have a good day today: it’s back up above the 50-day and the 200-day moving averages. The challenge will be the November high of $52, a likely spot for resistance.
The rental and leasing services company purchases jets and leases them to customers around the world. The stock trades at 71% of book value with a price-earnings ratio of 14.79 (the p/e for the S&P 500 is 38.54.) This year’s earnings are up by 27.49%. Air Lease Group pays a dividend of 1.13%.
FinVolution Group ADR (NYSE: FINV)
The stock hits a new high today and remains well above the 50-day and the 200-day moving averages, both of which continue to uptrend.
Fin Volution Group, a credit services business based in Shanghai, has a market capitalization of $1.16 billion. The stock trades with a price-earnings ratio of 6.88 and at 56% of its book value. The company has no debt, long-term or otherwise. Fin Volution pays a 3.07% dividend.
Heritage Commerce (NASDAQ: HTBK)
The price is finding resistance as it approaches the mid-November high of just above $110. That the stock remains above both the 50-day and the 200-day moving averages is positive.
The company has a market cap of $611 million. The stock is a component of the Russell 2000 exchange traded fund of small caps. The price-earnings ratio is 15.78 and shares may be purchased at an eight percent discount from book value. Heritage Commerce pays a dividend of 5.02%.
Site Centers (NYSE: SITC)
That big gap up at the beginning of October – when the company spun off Curbline Properties (NYSE: CURB) — is about half filled after steady selling since then. Note that the 200-day moving average remains in an uptrend.
This real estate investment trust specializes in retail locations from corporate headquarters in Beechwood, Ohio. Market cap is $788 million. The stock trades at just 32% of book value with a price-earnings ratio of 1.10. Site Centers pays a 1.73% dividend.
Stats courtesy of FinViz.com. Charts courtesy of Stockcharts.com.
More analysis and commentary at johnnavin.substack.com.
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