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4 'Below Book Value' Stocks

These names are showing up on the value screens

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Dec 23, 2021
Summary
  • Low price-earnings ratios for each
  • All are NYSE traded
  • Each one pays a dividend
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These four stocks are all trading below their book value, making it likely that their names are showing up on the value screens of large institutional investors. Since each one trades on the New York Stock Exchange, plenty of information is available for those who want to go into depth on them in order to determine whether they could be good investments.

Keep in mind that stocks trading at such discounts are typically unloved or rejected for a reason - whether that reason is valid, and whether it is temporary or permanent, is up to investors to determine.

Dynex Capital

Dynex Capital (

DX, Financial) is a real estate investment trust now going for a 12% discount to book. The company's price-to-FFO ratio is 3.86. Similar to the price-earnings ratio used for most companies, the price-to-FFO ratio is used to value REITs. "FFO" stands for "funds from operations." Dynex's price-to-FFO ratio is low compared to other REITs, a sign of possible value.

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The market capitalization for the company is $600 million and the enterprise value is $325.26 million. The firm has no debt, the kind of financial strength metric that value innvestors really like. Dynex is paying a dividend yield of 9.52%. The GuruFocus summary of financials shows four good signs, three medium warning signs and one severe warning sign:

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Annaly Capital

Annaly Capital (

NLY, Financial) is also a REIT. This one can be purchased today at a 3% discount to its book value. The price-to-FFO ratio is 7.93. Annaly's market capitalization is $11.83 billion. The enterprise value is $18.54 billion. Average daily volume is a heavy 18,300,000 shares. In terms of financial strength, the company's cash-debt ratio is 0.03, the debt-to-equity ratio is 0.39 and the debt-to-Ebitda ratio is 1.71.

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Annaly pays a 10.79% dividend yield. The financial summary of the REIT finds two good signs, two medium warning signs and two severe warning signs. Here's how it looks:

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Oppenheimer Holdings

Oppenheimer Holdings (

OPY, Financial) is a financial services company which now trades at 72% of its book value. With a market capitalization of $557.85, the enterprise value comes in at $1.47 billion. Oppenheimer's price-earnings ratio is a remarkably low 3.33. Average daily volume is relatively light for an NYSE-listed security: only about 104,000 shares.

The cash-debt ratio is 0.13, the debt-to-equity ratio is 1.35 and the debt-to-Ebitda ratio is 3.61. Oppenheimer Holdings pays a dividend of 1.22%. The GuruFocus financials summary of the company shows four good signs, one medium warning sign and one severe warning sign:

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Takeda Pharmaceuticals

Takeda Pharmaceuticals (

TAK, Financial) is a specialty and generic drug manufacturer based in Japan. It's trading at an 8% discount to book and the price-earnings ratio is a relatively low 10.42. The market capitalization is big at $42.69 billion and the enterprise value is $74.32 billion.

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In terms of financial strength, the cash-debt ratio is 0.15, the debt-to-equity ratio is 0.8 and the debt-to-Ebitda ratio is 3.47. Takeda pays investors a dividend that yields 5.86%. The financials summary for the company shows eight good signs and two severe warning signs:

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Disclosures

I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure
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