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For this article we studied non-financial stocks trading below book value and with improving return on equity from the previous quarter.

Then, for the sake of quality, we then sifted through this universe of companies and kept only those that had encouraging DuPont breakdowns – which implies:

- Improving profit margin, i.e. higher Net Income/ Revenues
- Improving asset turnover, i.e. higher Sales/Assets
- And decreasing leverage ratio, i.e. lower Assets/Equity

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.



Considering this information, which of these names would you say is the most attractive value stock?

1. LDK Solar Co., Ltd. (NYSE:LDK): Semiconductor Industry. Market cap of $1.02B. P/Book at 0.76. MRQ net profit margin 17.67% vs. previous quarter at 2.07%. MRQ sales/assets 0.12 vs. previous quarter at 0.08. MRQ assets/equity 4.81 vs. previous quarter at 5.23. This is a risky stock that is significantly more volatile than the overall market (beta = 2.66). It's been a rough couple of days for the stock, losing 6.95% over the last week.

2. Black Box Corp. (NASDAQ:BBOX): Networking & Communication Devices Industry. Market cap of $558.15M. P/Book at 0.73. MRQ net profit margin 4.81% vs. previous quarter at 3.11%. MRQ sales/assets 0.22 vs. previous quarter at 0.21. MRQ assets/equity 1.53 vs. previous quarter at 1.63. The stock has gained 8.26% over the last year.

3. Fresh Del Monte Produce Inc. (NYSE:FDP): Farm Products Industry. Market cap of $1.56B. P/Book at 0.93. MRQ net profit margin 5.67% vs. previous quarter at 3.84%. MRQ sales/assets 0.38 vs. previous quarter at 0.36. MRQ assets/equity 1.52 vs. previous quarter at 1.56. Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 7.6%, current ratio at 2.23, and quick ratio at 1.24. The stock has gained 25.26% over the last year.

4. Petrobras Argentina SA (NYSE:PZE):
Major Integrated Oil & Gas Industry. Market cap of $1.88B. P/Book at 0.78. MRQ net profit margin 4.43% vs. previous quarter at 4.22%. MRQ sales/assets 0.17 vs. previous quarter at 0.13. MRQ assets/equity 2.26 vs. previous quarter at 2.34. Might be undervalued at current levels, with a PEG ratio at 0.76, and P/FCF ratio at 7.12. The stock has performed poorly over the last month, losing 10.52%.

5. Transportadora de Gas Del Sur S.A. (NYSE:TGS): Gas Utilities Industry. Market cap of $600.64M. P/Book at 0.75. MRQ net profit margin 10.69% vs. previous quarter at 7.65%. MRQ sales/assets 0.06 vs. previous quarter at 0.06. MRQ assets/equity 1.68 vs. previous quarter at 1.73. The stock has gained 60.85% over the last year.

6. Diana Shipping Inc. (NYSE:DSX):
Shipping Industry. Market cap of $901.56M. P/Book at 0.79. MRQ net profit margin 47.64% vs. previous quarter at 46.33%. MRQ sales/assets 0.05 vs. previous quarter at 0.04. MRQ assets/equity 1.34 vs. previous quarter at 1.35. The stock has lost 10.71% over the last year.

*Data sourced from Google Finance and Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 6 Stocks Below Book With Improving ROE