From my watch list, these three companies are undervalued based on the Peter Lynch Price Value.
1) Nu Skin Enterprises Inc (NUS)
Description: The Company is a global direct selling company with operations in 53 markets worldwide. The Company develops and distributes innovative, premium-quality anti-aging personal care products and nutritional supplements under its Nu Skin and Pharmanex category brands, respectively. The Company operates in the direct selling channel, primarily utilizing person-to-person marketing to market and sell its products.
Profitability: NUS has a ROE of 31%, a ROA of 16% and a ROC of 86%.
These ratios are better then 96% of other Global Household & Personal Products companies.
Financials: The company has a financial strength of 8 out of 10, with a Cash to Debt ratio of 1.10 and an Interest Coverage of 184.70
Growth: Over the last five years, the company had a steady and strong growth rate (per share).
| Revenue | +24% |
| EBITDA | +35% |
| Free Cash Flow | +32% |
| BookValue | +23% |
| EPS | +40% |
Price: The stock is trading at about $40 with a drop during the last year of 50%. The Peter Lynch value gives a price of $109. The stock is undervalued of more then 50%. The DCF value gives a price of $129.
Currently the price is facing a downward trend since last January and is testing a support at $40.
The price is down 58% from its 52-Week High and is up 7% from its 52-Week Low. The P/E ratio is 9.40.
Dividend Yield: NUS has a dividend yield of 3.37% and grew 27% over the past 5 years.
Gurus:Â NUS is held by the following Gurus:
Chuck Royce holds 8,200,000 shares (14% of Outstanding Shares) with last add on 2014 Q4 when it raised his position of 26%.
Pioneer Investments holds 1,481,663 shares (2.5% of Outstanding Shares) with last trade on Q3 2014 when it added 46% shares to its portfolio.
2) Copa Holdings SA (CPA)
Description:Â The Company is a Latin American provider of airline passenger and cargo service through its two main operating subsidiaries: Copa Airlines and Copa Colombia.
Profitability:Â Copa Holdings has top ratios in the Global Airlines industry, ranked better then 93% of competitors. The current situation is at an average level compared to CPA past track records, with a ROE of 22%, a ROA of 11% and a ROC of 22%.
Financials:Â The company has a financial strength of 8 out of 10, with Cash to Debt of 0.78 and Interest Coverage of 17.15.
Growth:Â Over the last five years, the company had a steady growth rate (per share).
| Revenue | +20% |
| EBITDA | +7% |
| BookValue | +20% |
| EPS | +14% |
Price:Â The stock is trading at about $110. The Peter Lynch chart gives a value of $253. The DCF value gives a price of $288.
Currently, the price is down 31% from its 52-week high and up 25% from its 52-week low.
The price is down 16% since the last 12 months.
Dividend Yield:Â CPA has a dividend yeld of 3.60% with a growth rate of 51.10% over the past five years.
Gurus: CPA is held by these gurus:
Charles Brandes hold 402,847 shares of CPA (0.91% of Outstanding Shares). Last buy on 2014 Q3 with an impact of 0.63% on its portfolio.
Jeremy Grantham hold 806,104 shares of CPA (1.82% of Outstanding Shares). Last trade was on 2014 Q3 when it reduced his position of 36.4%.
3) CNOOC Ltd (CEO)
Description: The Company and its subsidiaries are engaged in the exploration, development, production and sale of crude oil, natural gas and other petroleum products. The Group is engaged in the upstream operating activities of the conventional oil and gas, shale oil and gas, oil sands and other unconventional oil and gas business.
Profitability:Â CEO has profitability of 9 out of 10 but with low returns. A ROC of 18%, a Return on Equity of 16% and a Return on Assets of 8%.
These levels are better then 95% of other Global Oil & Gas E&P competitors, but compared to history, these are the lowest levels for CEO.
Financials: The company has a Cash To Debt of 0.31 and Interest Coverage of 56.64 and a global financial strength of 7 out of 10
Growth: Over the last five years, the company had an amazing growth rate (per share).
| Revenue | +19% |
| EBITDA | +15% |
| BookValue | +22% |
Price: The stock is trading at about $143 and is trying to switch this downward trend. The Peter Lynch value gives a price of $320. The DCF value gives a fair value of $516.
Currently, the price is down 28% from its 52-week high and up 15% from its 52-week low.
The average price of the last 200 days is $164.
Technically, the price faced a double-bottom and now has a test at $150 to try to switch the downward trend. Short moving averages are crossing long ones but to have a real confirmation we have to wait for the price to cross the price of $150.
Dividend Yield: CEO has an amazing Dividend yield of 4.90% with a growth rate of 8% on the last 5 years.
Summarizing the 3 stocks:
| Â | NUS | CPA | CEO |
| ROC | 86% | 22% | 18% |
| ROA | 16% | 11% | 8% |
| ROE | 31% | 22% | 16% |
| Compared to Industry (better then) | 96% | 93% | 95% |
| Â | Â | Â | Â |
| Cash to Debt | 1.10 | 0.78 | 0.31 |
| Â | Â | Â | Â |
| Revenue Growth (5y) | +24% | +20% | +19% |
| EBITDA Growth (5y) | +35% | +7% | +15% |
| BookValue Growth (5y) | +23% | +20% | +22% |
| Â | Â | Â | Â |
| Current Price | 40$ | 110$ | 140$ |
| Peter-Lynch Price | 109$ (+173%) | 253$ (+130%) | 320$ (+129%) |
| DCF Price | 129$ (+223%) | 288$ (+162%) | 516$ (+269%) |
| 52-Weeks High | -58% | -16% | -28% |
| 52-Weeks Low | +7% | +25% | +15% |
| Trend | Downward | Neutral | Neutral |
| Â | Â | Â | Â |
| Dividend Yeld | 3.37% | 3.60% | 4.90% |
All 3 companies are well undervalued and have all good dividend yields for passive portfolios.
All 3 companies are growing and are at the top level of the sector. Returns are at double levels and the only matter is to find good entry point to avoid any loss on price fluctuations.
Read more about me at and my trades at The Extra Income.
