Low P / E Dividend Paying Stocks Now Trading Below Book Value
You don’t hear too much about these stocks. They don’t list anyone’s “hot ideas”. Jim Cramer mentions other names on CNBC. You won’t find them in the Cathie Woods Innovation Funds. It’s highly unlikely that Elon Musk will tweet about them anytime soon.
They are disadvantaged value stocks identifiable by 2 basic parameters: the price is lower than the book value and the price / earnings ratio is much lower than that of the market as a whole. Looked at another way, some of them may be redemption candidates given their relative cheapness and other factors.
One of the biggest of the old big banks based in New York, it’s also one of the cheapest of the big banks. With a price-to-earnings ratio of just 10 and now trading at an 11% discount to reserve, investors are likely to be watching it.
Citigroup has more long-term debt than equity, which is not so unusual for this industry, but which may give some investors pause. Profits are a long way off this year, although analysts expect it to improve next year. Meanwhile, the company pays a dividend of 2.61%, better than the yield on the 10-year Treasury bill.
The Japanese automaker is available for purchase now at just 64% of its book value. With an ap / e of 8.88, it falls within the value range of the stock, for sure. Equity is outstripped by long term debt but the current ratio is positive.
The gains are good this year and Honda’s 5-year record is also good. The company pays a dividend of 2.51%. Daiwa Securities recently shifted the focus from “buy” to “outperform”.
The South Korea-based telecommunications services company trades on the New York Stock Exchange at around half of its book value. That and a price / earnings ratio of 10.4 suggest investor disinterest.
Profits have been positive for the past 5 years, but analysts expect a poorer year to come. Long-term debt is less than equity. KT pays a dividend with a yield of 4.26%.
The company works with grocery stores in the food distribution industry. Profits are a long way off this year, but analysts expect significant improvement in the immediate future. The amount of long-term debt is greater than equity, but the company’s current ratio is positive.
The p / e is just 9.55 and the shares are trading at a 4% discount to reserve. Average Daily Volume for NASDAQ
The telecommunications provider is trading at 60% of its book value. The price / earnings ratio of 13.77 is well below the multiple of the S&P 500. Profits have been very good this year, but analysts’ expectations are for a less than great year ahead.
This is another candidate where long term debt exceeds equity but the current ratio is green. The company pays a dividend of 2.74%.
These are not buy recommendations. You would like to do more research on any of these before drawing any conclusions. The only point is that value stocks exist and we are in a period or cycle where they receive little notice. From a decidedly vexing point of view, it’s interesting.
Statistics provided by FinViz.com.