Financially Sounds Stocks Selling At A Discount

Cineworld Group and Dart Group are two of the companies on my list that I consider are undervalued. Investors can determine how much a company is worth based on how much money they are expected to make in the future, or compared to the value of their peers. The list I’ve put together below are of stocks that compare favourably on all criteria, which potentially makes them good investments if you believe the price should eventually reflect the stock’s actual value.

Cineworld Group plc (LSE:CINE)

Cineworld Group plc engages in the operation of cinemas. Formed in 1995, and now led by CEO Moshe Greidinger, the company employs 9,000 people and with the stock’s market cap sitting at GBP £1.65B, it comes under the small-cap stocks category.

CINE’s stock is now floating at around -45% lower than its actual level of £10.84, at a price tag of £6.01, based on its expected future cash flows. This discrepancy signals a potential opportunity to buy CINE shares at a low price. Also, CINE’s PE ratio is around 16.5x against its its media peer level of 23.9x, indicating that relative to its peers, you can buy CINE for a cheaper price. CINE is also a financially healthy company, as current assets can cover liabilities in the near term and over the long run. Finally, its debt relative to equity is 47%, which has been declining for the past few years signifying its capacity to reduce its debt obligations year on year.

LSE:CINE PE PEG Gauge Jan 1st 18
LSE:CINE PE PEG Gauge Jan 1st 18

Dart Group PLC (AIM:DTG)

Dart Group PLC, together with its subsidiaries, engages in leisure travel, and distribution and logistics businesses in Europe. Founded in 1971, and run by CEO , the company size now stands at 6,322 people and with the company’s market capitalisation at GBP £1.01B, we can put it in the small-cap stocks category.

DTG’s shares are now floating at around -38% under its actual worth of £11.06, at a price tag of £6.81, based on its expected future cash flows. The divergence signals an opportunity to buy DTG shares at a low price. Moreover, DTG’s PE ratio is trading at 8.6x while its airlines peer level trades at 8.7x, suggesting that relative to its competitors, DTG’s stock can be bought at a cheaper price. DTG is also strong in terms of its financial health, as near-term assets sufficiently cover liabilities in the near future as well as in the long run.

AIM:DTG PE PEG Gauge Jan 1st 18
AIM:DTG PE PEG Gauge Jan 1st 18

Bisichi Mining Plc (LSE:BISI)

Bisichi Mining PLC engages in coal mining activities in the United Kingdom and South Africa. Founded in 1910, and run by CEO Andrew Heller, the company provides employment to 194 people and with the company’s market cap sitting at GBP £7.53M, it falls under the small-cap group.