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A Trio of Stocks Trading Near the GF Value Line

These stocks could be bargains

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Alberto Abaterusso
Jun 14, 2021

Summary

  • Dynagas LNG Partners LP and Clearwater Paper Corp are fairly valued stocks, while Qudian Inc is modestly undervalued, according to GuruFocus' Value Line
  • The GF Value is a unique intrinsic value calculation from GuruFocus based on the stock's historical multiples and the business' past returns and growth, as well as future performance estimates
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When screening the market for bargain opportunities. value investors could be interested in the following securities, as their share prices are trading near or below the intrinsic value estimated by the GuruFocus Value Line. The GF Value is a unique intrinsic value calculation from GuruFocus that utilizes the three components listed below:

  • The stock's historical multiples, such as the price-earnings ratio, the price-sales ratio, the price-book ratio and the price-to-free cash flow ratio.
  • A GuruFocus adjustment factor based on the past returns and growth of the company's business.
  • Estimations of future business performance.

Dynagas LNG Partners LP

The first stock that holds the criteria is Dynagas LNG Partners LP (

DLNG, Financial), an Athens, Greece-based owner and operator of six liquefied natural gas carriers with a carrying capacity of approximately 152,330 cubic meters each.

Dynagas LNG Partners LP's share price was $2.77 at close on Friday, while its GF Value stands at $2.56, resulting in a price-to-GF Value ratio of 1.08 and a rating of fairly valued.

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The stock price is currently quite flat compared to its year ago levels, with a market capitalization of $101.92 million and a 52-week range of $1.99 to $3.97.

The price-earnings ratio is 4.4 (versus the industry median of 15.26) and the price-book ratio is 0.29 (versus the industry median of 1.29). Also, the price-sales ratio is 0.72 (versus the industry median of 1.38) and the price-to-free-cash-flow ratio is 1.44 (versus the industry median of 9.92).

The stock has a GuruFocus profitability rating of 7 out of 10.

Concerning the future business performance, sell-side analysts on Wall Street estimate that earnings per share will jump by approximately 1% on average every year over the next five years.

As of June, the stock has two strong buy recommendation ratings, two buy recommendation ratings and three hold recommendation ratings for an average target price of $3 per share.

Clearwater Paper Corp

The second stock that matches the requirements is Clearwater Paper Corp (

CLW, Financial), a Spokane, Washington-based producer and seller of private label tissue and bleached paperboard products with operating activities in the United States and abroad.

Clearwater Paper Corp’s shares closed at $29.23 per unit on Friday compared to its GF Value of $27.68, resulting in a price-to-GF Value ratio of 1.06 and a rating of fairly valued.

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The stock has fallen by 18.10% over the past year for a market capitalization of $487.69 million and a 52-week range is $27.69 to $45.81.

The price-earnings ratio is 6.23 (versus the industry median of 16.11) and the price-book ratio is 0.91 (versus the industry median of 1.04). The price-sales ratio is 0.27 (versus the industry median of 0.87) and the price-to-free-cash-flow ratio is 2.14 (versus the industry median of 10.85).

The GuruFocus profitability rating is 6 out of 10.

Regarding future business performance, sell-side analysts on Wall Street forecast that the earnings per share will increase at an average pace of 5% every year over the next five years.

As of June, sell-side analysts on Wall Street have issued two strong buy recommendation ratings, two buy recommendation ratings and two hold recommendation ratings for an average target price of $40.50 per share.

Qudian Inc

The third stock that holds the criteria is Qudian Inc (

QD, Financial), a Xiamen, People’s Republic of China-based credit services company, providing, through its dedicated online platforms, cash and merchandise credit products. The borrowers purchase the merchandise directly from the company’s marketplace, paying by installments. Additionally, the company operates a platform through which it dispenses loan recommendations to third-party financial service providers. All the company’s customers reside in China.

Qudian Inc was trading at $2.11 per share at close on Friday compared to the GF Value of $2.60, resulting in a price-to-GF Value ratio of 0.81 and a rating of modestly undervalued.

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The stock has risen by nearly 30% over the past year, determining a market capitalization of $534.02 million and a 52-week range of $1.17 to $3.82.

The price-earnings ratio is 3.93 (compared to the industry median of 14.45) and the price-book ratio is 0.29 (versus the industry median of 1.01). The price-sales ratio is 1.07 (compared to the industry median of 3.51) and the price-to-free-cash-flow ratio is 1.68 (versus the industry median of 5.76).

GuruFocus has assigned the stock a profitability rating of 7 out of 10.

Concerning the future business performance, sell-side analysts on Wall Street predict that the earnings per share will increase 239.10% this year.

As of June, the stock has a median recommendation rating of hold and an average target price of $1.69 per share.

Disclosure: I have no positions in any securities mentioned.

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Disclosures

I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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