A company’s book value is the value of the assets on its balance sheet minus the liabilities. A ratio of the company’s stock price in relation to its book value per share is a strong indication of a fundamentally undervalued stock, as it implies that an investor would be paying a discount to the company’s asset value. In addition to that, the following companies are also profitable and have strongly positive working capital.
BreitBurn Energy Partners LP (NASDAQ: BBEP)
Oil & Gas Exploration and Production
BreitBurn Energy Partners L.P is an oil and gas partnership focused on the acquisition, exploitation and development of oil, natural-gas liquids (NGL) and gas properties in the United States. The Company’s properties include oil, natural gas and midstream assets in Michigan, Oklahoma, Texas, Wyoming, California, Florida and Indiana/Kentucky.
- Market Cap: $1,683,511,072
- Price/Book: 0.40x
- Revenue: $1,626,585,434
- Working Capital: $49,996,728
PHI Inc. (NASDAQ: PHII)
Oil Related Services and Equipment
PHI Inc. is a provider of helicopter transportation services in the Gulf of Mexico. The Company is engaged in the transportation of personnel and, to a lesser extent, parts and equipment to, from, and among offshore platforms for customers engaged in the oil and gas exploration, development, and production industry, in the Gulf of Mexico. It operates in three business segments: Oil and Gas, Air Medical and Technical Services.
- Market Cap: $626,653,691
- Price/Book: 0.81x
- Revenue: $931,042,843
- Working Capital: $1,640,187,677
Valener Inc. (TSX: VNR)
Natural Gas Utilities
Valener Inc. (Valener) is a Canada-based energy company focused on the production, transportation, storage and distribution of energy. The Company holds 29% interest in Gaz Metro, which is involved in natural gas distribution in Quebec and Vermont and electricity distribution in Vermont. Valener operates in four segments: Energy distribution, Natural Gas Transportation, Energy production, and Energy Services, storage.
- Market Cap: $652,814,501
- Price/Book: 0.90x
- Revenue: $1,788,000
- Working Capital: $6,615,000
Intrepid Potash Inc. (NYSE: IPI)
Agricultural Chemicals
Intrepid Potash, Inc. is a producer of muriate of potash (potassium chloride or potash) in the United States. The Company is engaged in the production and marketing of potash and langbeinite.
- Market Cap: $1,109,013,528
- Price/Book: 0.95x
- Revenue: $456,286,599
- Working Capital: $624,785,410
