4 Undervalued, Low-Debt Stocks Trading Under $5

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 |  Includes: BPOP, ENTR, SUNH, UMC
by: Kapitall

Company debt should always be a consideration in stock analysis, especially because debt is a wedge between firm value and a firm's value to shareholders.

Since debtholders are always paid before shareholder dividends, excessive levels of debt can lower the value of shareholders' investment.

We ran a screen on low-debt companies, with most recent quarter total debt to assets below 0.2. We screened these companies for those that appear undervalued to trailing-twelve-month cash flow, with P/CF below 5. We then screened for stocks trading below $5.

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

(Access iframes here)

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think the market is undervaluing these stocks? Use this list as a starting-off point for your own analysis.

List sorted by market cap.

1. United Microelectronics Corporation (NYSE:UMC): Semiconductor Equipment & Materials Industry. Market cap of $4.96B. P/CF at 2.66 (price at $1.90 and TTM cash flow per share at $0.71). MRQ total debt to assets at 0.08. The stock is currently stuck in a downtrend, trading 9.76% below its SMA20, 13.8% below its SMA50, and 25.05% below its SMA200. It's been a rough couple of days for the stock, losing 6.4% over the last week.

2. Popular Inc. (NASDAQ:BPOP): Foreign Regional Banks Industry. Market cap of $2.05B. P/CF at 4.52 (price at $2.00 and TTM cash flow per share at $0.44). MRQ total debt to assets at 0.16. The stock is currently stuck in a downtrend, trading 10.48% below its SMA20, 18.85% below its SMA50, and 29.09% below its SMA200. It's been a rough couple of days for the stock, losing 12.66% over the last week.

3. Entropic Communications, Inc. (NASDAQ:ENTR): Semiconductor Industry. Market cap of $343.25M. P/CF at 4.11 (price at $3.97 and TTM cash flow per share at $0.97). MRQ total debt to assets at 0.00. This is a risky stock that is significantly more volatile than the overall market (beta = 2.6). The stock is a short squeeze candidate, with a short float at 28.39% (equivalent to 7.87 days of average volume). It's been a rough couple of days for the stock, losing 6.37% over the last week.

4. Sun Healthcare Group Inc. (NASDAQ:SUNH): Long-Term Care Facilities Industry. Market cap of $245.34M. P/CF at 2.41 (price at $3.28 and TTM cash flow per share at $1.36). MRQ total debt to assets at 0.14. The stock is currently stuck in a downtrend, trading 36.81% below its SMA20, 53.15% below its SMA50, and 69.61% below its SMA200. The stock has performed poorly over the last month, losing 58.43%.

*P/CF and total debt to assets data sourced from Screener.co, all other data sourced from Finviz.

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