If a company is trading below the book value of its assets it suggests that the market believes the assets are worth less than what it appears to be. One way to value a company’s assets is to look at its return over time – such as ROA (return on assets calculated as net income/average assets). Thus, the companies on our list today have a return of 15%+ on its assets, yet still sell below book value.
Petrolia Inc. (TSXV: PEA) – $0.38
Oil & Gas Exploration and Production
Petrolia Inc. is a Canada-based oil and gas exploration company engaged in the exploration and development under oil and gas exploration licenses. The Company’s projects include the Bourque project, Haldimand project and Anticosti project, among others. The other projects include the Tar Point project, located southeast of the Haldimand project; Gaspesia Edgar project; Marcel-Tremblay project; Dalhousie project; Matapedia project; Corte-Real project, located 10 kilometers northwest of the Haldimand discovery; and Gastonguay project located near Murdochville and Restigouche project, located in the southern Gaspe Peninsula.
- Market Cap: $31,254,468
- P/B: 0.45x
- ROA (2014): 25.6%
- Revenues (LTM): $28,337,250
Automodular Corp. (TSX: AM) – $2.31
Auto, Truck & Motorcycle Parts
Automodular Corporation is a Canada-based sequencer and sub-assembler of components and modules that are installed in cars and trucks made by North American Original Equipment Manufacturers (OEMs). The ’Company’s products include instrument panel, rear suspension, front corner, front center suspension, front strut and bolster. Automodular Corporation also manufactures complex sub-assemblies such as cockpits, suspension units and powerpacks. The Company helps the renewable energy companies in sub-assembly of complex components; sequencing of the finished product in the order required; transportation and logistics; and installation and maintenance services.
- Market Cap: $45,583,569
- P/B: 0.87x
- ROA (2014): 23.0%
- Revenues (LTM): $66,212,000
Uranium Participation Corporation (TSX: U) – $4.95
Uranium
Uranium Participation Corporation is a Canada-based investment company that invests all of its assets in uranium oxide in concentrates (U3O8) and uranium hexafluoride (UF6). The Company invests at least 85% of the proceeds of its equity offerings in uranium, with the primary objective of achieving appreciation in the value of its uranium holdings. The Corporation also lends its uranium to third parties from time to time. The Company’s uranium is held directly or indirectly through its subsidiary, Uranium Participation Cyprus Limited. Denison Mines Inc. (The Manager) provides general administration and management services to the Company.
- Market Cap: $588,407,886
- P/B: 0.89x
- ROA (2014): 19.2%
- Revenues (LTM): $188,053,000
Sterling Resources Ltd. (TSXV: SLG) – $0.135
Oil & Gas Exploration and Production
Sterling Resources Ltd. is a Canada-based energy company engaged in the exploration, appraisal and development of crude oil and natural gas in the United Kingdom, Romania, the Netherlands and France. The Company’s offshore properties include licenses in two Blocks in the Northern North Sea (oil), one block in the Central North Sea (oil) and 15 blocks in the Southern North Sea (gas). The Company holds interests in three onshore United Kingdom basins. Two of the basins are located in southern England and the third is located in northeast England.
- Market Cap: $57,487,205
- P/B: 0.14x
- ROA (2014): 18.3%
- Revenues (LTM): $89,027,644
Nevsun Resources Ltd. (TSX: NSU) – $4.20
Gold
Nevsun Resources Ltd. (Nevsun) is engaged in the acquisition, exploration, development and operation of mineral property interests. The Company’s principal mining operation is the Bisha Mine and its principal mineral property is the Bisha property, which is owned by Bisha Mining Share Company (BMSC). Nevsun has a 60% interest in BMSC. Bisha is a volcanogenic massive sulphide (VMS) gold, copper and zinc deposit located 150 kilometers west of Asmara, Eritrea, East Africa.
- Market Cap: $838,562,768
- P/B: 0.94x
- ROA (2014): 17.9%
- Revenues (LTM): $605,623,417
