In order to measure the good health (liquidity and solvency) of a company, how much cash has been generated by the company needs to be analysed. Price/cash flow (P/CF) ratio is a measure of the market’s expectations of a firm’s future financial health. The ratio is considered more reliable than the price/earnings (P/E) ratio to evaluate a company, as cash flow is not easily manipulated unlike earnings which could be easily manipulated through depreciation and other non-cash factors.
Today, we have shortlisted 11 U.S technology stocks that have recorded low P/CF ratios during their trailing twelve months period. These stocks have P/CF ratio of less than 10, which is considered as an attractive investment from a valuation standpoint. Most Analysts covering these stocks recommend a Buy and their 12-month price targets indicate significant upside potential from current levels.
| Company Name |
Ticker |
Exchange |
Market Cap |
Last Price |
1-Month Average Volume |
1-Month Price Change |
Price to Cash Flow Ratio |
Total Analyst Coverage |
Buy Rating |
Upside |
|
Unwired Planet Inc |
UPIP |
NASDAQ |
184.4 |
1.65 |
436,618 |
-13.6% |
2.45 |
4 |
100% |
141% |
|
Cinedigm Corp |
CIDM |
NASDAQ |
126.7 |
1.65 |
379,030 |
1.9% |
3.16 |
4 |
75% |
147% |
|
magicJack VocalTec Ltd |
CALL |
NASDAQ |
163.9 |
9.19 |
381,859 |
-10.9% |
3.69 |
4 |
50% |
80% |
|
United Online Inc |
UNTD |
NASDAQ |
153.7 |
10.84 |
126,933 |
-6.5% |
4.28 |
5 |
80% |
60% |
|
Merge Healthcare Inc |
MRGE |
NASDAQ |
224.3 |
2.28 |
167,103 |
-0.9% |
5.62 |
5 |
60% |
54% |
|
Mitel Networks Corp |
MITL |
NASDAQ |
829.6 |
8.34 |
220,977 |
-12.9% |
8.13 |
7 |
100% |
75% |
|
USA Technologies Inc |
USAT |
NASDAQ |
59.1 |
1.66 |
351,427 |
-11.7% |
8.16 |
3 |
67% |
84% |
|
Alliance Fiber Optic Products Inc |
AFOP |
NASDAQ |
230.8 |
12.40 |
332,487 |
-5.1% |
8.41 |
4 |
75% |
77% |
|
Quantum Corp |
QTM |
NYSE |
281.8 |
1.11 |
609,395 |
-8.3% |
8.50 |
4 |
50% |
65% |
|
Ebix Inc |
EBIX |
NASDAQ |
530.2 |
13.83 |
352,552 |
-1.5% |
8.68 |
3 |
67% |
59% |
|
IXYS Corp |
IXYS |
NASDAQ |
323.4 |
10.27 |
146,019 |
-5.8% |
9.52 |
2 |
100% |
66% |
Source: Bloomberg
Company Description
Unwired Planet Inc (NASDAQ: UPIP)
Unwired Planet Inc. provides open Internet-based communication infrastructure software and applications. The company’s customers are wireless network operators, wireline carriers, Internet service providers, and broadband network providers. Openwave offers wireless Internet infrastructure and browsers, unified messaging, mobile email, directory service, and voice processing.
Cinedigm Corp (NASDAQ: CIDM)
Cinedigm Corp. offers a fully managed storage and delivery service for owners and distributors of digital content to movie theaters and other venues. The company’s services and products include alternative content, digital cinemas services, IT management, media delivery, pre-feature advertising and software.
magicJack VocalTec Ltd (NASDAQ: CALL)
magicJack VocalTec Ltd. offers voice-over-Internet-protocol telephone services. The company developed and markets computer software and hardware for making telephone calls over the Internet. The hardware component of the product plugs into the USB port on a personal computer, and a telephone handset plugs into that.
United Online Inc (NASDAQ: UNTD)
United Online, Inc. is a provider of consumer products and services over the internet. The company’s offerings include floral related products and services for consumer and retail florists. United services also include online social networking, online loyalty marketing, internet access and email.
Merge Healthcare Inc (NASDAQ: MRGE)
Merge Healthcare Inc. provides medical imaging and information management software and services. The company offers clinical and medical imaging software applications and development tools.
Mitel Networks Corp (NASDAQ: MITL)
Mitel Networks Corp., is a provider of communications solutions for organizations. The company offers solutions, from business communications to unified communications, from prepackaged to tailored applications.
USA Technologies Inc (NASDAQ: USAT)
USA Technologies, Inc. offers consumer payment systems. The company’s e-Port electronic business solution is a credit card payment system that is used at vending machines, convenience stores, gas pumps, and other retail points-of-sale.
Alliance Fiber Optic Products Inc (NASDAQ: AFOP)
Alliance Fiber Optic Products, Inc. designs, manufactures, and markets a variety of high performance fiber optic components and modular solutions for leading and emerging communications equipment manufacturers. The company offers a broad product line of passive optical components including interconnect systems and couplers and splitters.
Quantum Corp (NYSE: QTM)
Quantum Corporation sells scale-out storage, archive and data protection solutions for capturing, sharing and preserving digital assets in physical an virtual environments. The company provides storage file systems, nearline storage systems, backup and deduplication appliances, tape libraries and cloud services.
Ebix Inc (NASDAQ: EBIX)
Ebix, Inc. supplies software and electronic commerce solutions to the insurance industry. The company provides a series of application software ranging from carrier systems, agency systems, and exchanges to custom software development for all entities involved in the insurance and financial industries. Ebix provides products, support, and consultancy to customers on several continents.
IXYS Corp (NASDAQ: IXYS)
IXYS Corporation designs, develops, and markets power semiconductors. The company offers a variety of power semiconductors, including power MOFSETs, insulated gate bipolar transistors, thyristors, and rectifiers. IXYS’ products are used primarily in controlling energy in power supplies, motor drives, medical systems, and electric vehicles.
