When looking for value opportunities amid capital-intensive businesses, investors could be interested in stocks whose price-to-tangible-book-value ratios are more appealing than their industry medians.
The price-to-tangible-book-value ratio is preferred to the price-book ratio for these publicly traded companies, as the appraisal of their business mainly derives from tangible assets.
China Automotive Systems Inc
The first stock that holds the criteria is China Automotive Systems Inc (CAAS, Financial), a Jingzhou, People's Republic of China-based manufacturer of automotive systems and components with a distribution network that supplies mainly original equipment manufacturers in China. The company also sells its products in North America and Brazil and supports other industry operators in after-sales as well as research and development services.
China Automotive Systems Inc has a price-to-tangible-book-value ratio of 0.52, which is more compelling than the industry median of 1.82 and ranks higher than 90.07% of the 1,088 competitors that operate in the vehicles and parts industry.
The share price was $4.93 as of June 10. The tangible book value per share was approximately $9.52 as of the March 2021 quarter.
The stock price has increased by 114.34% over the past year for a market capitalization of $152.10 million and a 52-week range of $2 to $13.69.
GuruFocus assigned a score of 4 out of 10 for the financial strength rating and 6 out of 10 for the profitability rating of the company.
On Wall Street, the stock has a recommendation rating of buy and a target price of $6 per share.
Alliance Resource Partners LP
The second stock that meets the criteria is Alliance Resource Partners LP (ARLP, Financial), a Tulsa, Oklahoma-based producer and marketer of coal holding approximately 1.65 billion tons of proven and probable coal reserves in Illinois, Indiana, Kentucky, Maryland, Pennsylvania and West Virginia. The company primarily supplies utilities and industrial users in the U.S.
Alliance Resource Partners LP's price-to-tangible-book-value ratio of 0.82 appeals more than the industry median of 1.55, and it ranks higher than 108 companies out of a total of 142 competitors that operate in the other energy sources industry.
As of June 10, the stock price was $7.01, while the tangible book value per share was $8.52 as of the March 2021 quarter.
The stock price has risen by nearly 74% over the past year for a market capitalization of $891.64 million and a 52-week range of $2.63 to $7.4.
GuruFocus assigned a score of 4 out of 10 for the financial strength rating and 7 out of 10 for the profitability rating of the company.
On Wall Street, the stock has a recommendation rating of buy with a target price of $7 per share.
Atlas Air Worldwide Holdings Inc
The third stock that holds the criteria is Atlas Air Worldwide Holdings Inc (AAWW, Financial), a Purchase, New York-based provider of outsourced cargo and passenger aircraft operating solutions and charter services to various organizations including the U.S. Military Air Mobility Command. The company also serves airlines, express delivery carriers and e-commerce retailers. The company has operating activities in the Americas and internationally.
Atlas Air Worldwide Holdings Inc's price-to-tangible-book-value ratio of 0.92 is more appealing than the industry median of 1.59, ranking better than 72% of 809 companies that operate in the transportation industry.
The stock price was trading at $73.70 as of June 10, while the tangible book value per share was $79.77 for the March 2021 quarter.
The stock price has risen by nearly 87% over the past year, determining a market capitalization of $2.14 billion and a 52-week range of $38.02 to $76.22.
GuruFocus assigned a score of 4 out of 10 for the financial strength rating and 7 out of 10 for the profitability rating of the company.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $94.67 per share.
Disclosure: I have no position in any security mentioned.
