Today, we have shortlisted 10 undervalued stocks with high yields across sectors, offering an attractive combination of high free cash flow yield, earnings yield and dividend yield. These stocks are currently trading at relatively low 1-Yr forward Price-to-earning and Price-to-book multiples, below the forward PE multiple of S&P 500 Index at 16.5X, NASDAQ Index at 21.4X and Toronto Stock Exchange at 16.4X. We note that the PEG ratio of these stocks is below 1. Moreover, these stocks have reported strong earnings growth during their latest reported quarter and provide high return on equity. The shortlisted stocks have accumulated gains during the past three months with daily average trading volume in excess of 100,000.
|
Company Name |
Exchange |
Ticker |
Market Cap |
Last Price |
Average Volume |
Price Change |
EPS Growth |
Free Cash Flow Yield |
Earnings Yield |
Dividend Yield |
1Yr- Fwd PE Ratio |
1Yr- Fwd P/B Ratio |
Return On Equity |
|
Arlington Asset Investment Corp |
NYSE |
AI |
0.5 |
26.66 |
225,335 |
3.9% |
82.6% |
13.1% |
12.5% |
13.2% |
6.6 |
0.9 |
9.1% |
|
Home Loan Servicing Solutions Ltd |
NASDAQ |
HLSS |
1.6 |
22.82 |
504,777 |
7.2% |
38.6% |
26.6% |
9.9% |
8.2% |
10.1 |
1.3 |
13.7% |
|
Labrador Iron Ore Royalty Corp |
TSX |
LIF |
2.0 |
30.74 |
268,111 |
1.1% |
23.5% |
8.1% |
8.0% |
6.3% |
12.7 |
3.2 |
27.4% |
|
Alliance Resource Partners LP |
NASDAQ |
ARLP |
3.3 |
44.69 |
164,569 |
6.4% |
14.4% |
9.7% |
9.0% |
5.5% |
9.9 |
3.4 |
34.6% |
|
Genworth MI Canada Inc |
TSX |
MIC |
3.5 |
37.04 |
225,673 |
0.1% |
12.4% |
3.6% |
9.8% |
3.6% |
9.9 |
1.0 |
12.1% |
|
NBT Bancorp Inc |
NASDAQ |
NBTB |
1.0 |
23.68 |
101,330 |
0.7% |
95.2% |
13.1% |
6.9% |
3.4% |
14.1 |
1.2 |
8.8% |
|
Western Energy Services Corp |
TSX |
WRG |
0.8 |
11.08 |
443,983 |
9.3% |
40.0% |
4.8% |
6.3% |
3.0% |
14.2 |
1.4 |
8.7% |
|
Western Refining Inc |
NYSE |
WNR |
4.1 |
39.66 |
1,380,570 |
8.2% |
11.5% |
11.1% |
7.1% |
2.0% |
10.2 |
2.4 |
29.6% |
|
Canadian Western Bank |
TSX |
CWB |
3.3 |
40.72 |
224,834 |
8.2% |
18.5% |
5.1% |
6.8% |
2.0% |
14.9 |
2.1 |
14.3% |
|
Home Capital Group Inc |
TSX |
HCG |
3.4 |
48.78 |
240,334 |
10.8% |
16.3% |
26.4% |
8.6% |
1.3% |
11.8 |
2.4 |
23.6% |
Source: Bloomberg
Note: Yields and EPS are as of their latest reported quarter
Market cap & Last Price are in their respective currencies
Company Description:
Arlington Asset Investment Corp (NYSE: AI)
Arlington Asset Investment Corp. is an investment company. The company invests in mortgage-related assets and merchant banking opportunities. Arlington Asset’s investments include mortgage-backed securities (MBS) and collaterized mortgage obligations (CMOs).
Home Loan Servicing Solutions Ltd (NASDAQ: HLSS)
Home Loan Servicing Solutions Ltd. acquires mortgage servicing assets. The company invests primarily in sub-prime and Alt-A mortgage servicing rights and associated servicing advances, and hires residential loan servicers to service the pools of mortgage loans underlying the mortgage servicing rights.
Labrador Iron Ore Royalty Corp (TSX: LIF)
Labrador Iron Ore Royalty Corp is an unincorporated open-ended trust. The company, through its subsidiaries, holds an overriding royalty on all iron ore products produced, sold, delivered, and shipped by Iron Ore Company of Canada.
Alliance Resource Partners LP (NASDAQ: ARLP)
Alliance Resource Partners, L.P. produces and markets coal to United States utilities and industrial users. The company operates its facilities in Kentucky, Illinois, and Maryland.
Genworth MI Canada Inc (TSX: MIC)
Genworth MI Canada Inc provides private residential mortgage insurance in Canada. The company underwrites mortgage insurance on residential properties in all provinces and territories of Canada.
NBT Bancorp Inc (NASDAQ: NBTB)
NBT Bancorp Inc. is a banking holding company. The company, through its Banking subsidiaries, operates branches in New York and Pennsylvania and provides a full range of retail and commercial banking services, as well as trust and investment services for individuals and businesses.
Western Energy Services Corp (TSX: WRG)
Western Energy Services Corp. is an oil field services company. The company’s services include coiled tubing services, well testing, and down hole tool rentals.
Western Refining Inc (NYSE: WNR)
Western Refining, Inc., through a subsidiary, refines crude oil and markets petroleum products. The subsidiary primarily produces gasoline, diesel, and jet fuel. The products are marketed in Arizona, New Mexico and Texas in the United States, and Juarez, Mexico.
Canadian Western Bank (TSX: CWB)
Canadian Western Bank is a Schedule I chartered bank which operates in western Canada. The Bank provides commercial loans, energy loans, construction and real estate project financing, and industrial equipment financing. Canadian Western’s retail services include a variety of mortgages, consumer loans, and deposit products.
Home Capital Group Inc (TSX: HCG)
Home Capital Group Inc. is a holding company operating through its principal subsidiary, Home Trust Company. Home Trust is a federally regulated trust company offering deposit, mortgage lending, and credit card issuing services. Licensed to conduct business across Canada, Home Trust has offices in Ontario, Alberta, and British Columbia.
