There are plenty of metrics to use in determining whether a company is overvalued or undervalued. Given the unstable economic situation globally and the clear demand for top line growth by investors we thought using the Price/Sales Ratio would an interesting metric to implement. This ratio illustrates how much investors are willing to pay for every dollar of a company’s sales. The lower this ratio number is the more potential value there may be.
Revenue growth (1-Fiscal Year) presents a picture of which firm’s are growing the top line over a more extended period of time than a one quarter two quarters.
We ran a screen for companies with a P/S Ratio less than 1 that were trading near their 52 Week lows. From this narrowed pool we then screened for firms had grown the top line over the last fiscal year by at least 10%.
The Price/Sales Ratio ranks the list from highest to lowest:
1. Agrium Inc. (AGU)
Sector | Basic Materials |
Industry | Agricultural Inputs |
Market Cap | $13,378M |
Beta | 1.63 |
The company is a retailer of agricultural products and services. The firm has a P/S Ratio of 1.00 AGU is 17.08% above its 52-Week Low. The firm’s 1-Year Fiscal Revenue Growth Rate is 15.24%. The short interest was N/A as of 08/31/2011.
2. Allegheny Technologies Inc. (ATI)
Sector | Industrials |
Industry | Metal Fabrication |
Market Cap | $6,119M |
Beta | 1.74 |
The company offers metal products and solutions. The firm has a P/S Ratio of 1.00. ATI is 10.53% above its 52-Week Low. The firm’s 1-Year Fiscal Revenue Growth Rate is 32.50%. The short interest was 5.80% as of 08/31/2011.
3. NII Holdings Inc. (NIHD)
Sector | Communication Services |
Industry | Telecom Services |
Market Cap | $6,119M |
Beta | 1.99 |
The company offers digital wireless communication services with a focus on Latin American markets. The firm has a P/S Ratio of 1.00. NIHD is 3.62% above its 52-Week Low. The firm’s 1-Year Fiscal Revenue Growth Rate is 27.37%. The short interest was 1.60% as of 08/31/2011.
4. Telecom Argentina SA. (TEO)
Sector | Communication Services |
Industry | Telecom Services |
Market Cap | $3,932M |
Beta | 1.03 |
The company offers fixed-line public telecommunication and other telecom related services within Argentina. The firm has a P/S Ratio of 1.00. TEO is 2.62% above its 52-Week Low. The firm’s 1-Year Fiscal Revenue Growth Rate is 20.12%. The short interest was N/A as of 08/31/2011.
5. Kyocera Corporation. (KYO)
Sector | Technology |
Industry | Consumer Electronics |
Market Cap | $16,316M |
Beta | 1.12 |
The company is involved in a variety of high-tech fields. The firm has a P/S Ratio of 0.99. KYO is 6.63% above its 52-Week Low. The firm’s 1-Year Fiscal Revenue Growth Rate is 17.98%. The short interest was N/A as of 08/31/2011.
6. Nabors Industries Ltd. (NBR)
Sector | Energy |
Industry | Oil & Gas Drilling |
Market Cap | $5,040M |
Beta | 1.92 |
The company is a landing drilling company with operations worldwide. The firm has a P/S Ratio of 0.99. NBR is 8.21% above its 52-Week Low. The firm’s 1-Year Fiscal Revenue Growth Rate is 18.63%. The short interest was 2.20% as of 08/31/2011.
7. OmniVision Technologies, Inc. (OVTI)
Sector | Technology |
Industry | Semiconductors |
Market Cap | $1,018M |
Beta | 1.41 |
The company designs and sells semiconductor image sensor devices. The firm has a P/S Ratio of 0.99. OVTI is 2.83% above its 52-Week Low. The firm’s 1-Year Fiscal Revenue Growth Rate is 58.62%. The short interest was 12.70% as of 08/31/2011.
8. Liberty Global, Inc. (LBTYA)
Sector | Communication Services |
Industry | Pay TV |
Market Cap | $10,936M |
Beta | 1.61 |
The company offers a variety of broadband communication services internationally. The firm has a P/S Ratio of 0.97. LBTYA is 29.58% above its 52-Week Low. The firm’s 1-Year Fiscal Revenue Growth Rate is 20.27%. The short interest was 5.70% as of 08/31/2011.
9. Methanex Corporation. (MEOH)
Sector | Basic Materials |
Industry | Specialty Chemicals |
Market Cap | $2,214M |
Beta | 1.94 |
The company produces and sells methanol all over the world. The firm has a P/S Ratio of 0.97. MEOH is 6.21% above its 52-Week Low. The firm’s 1-Year Fiscal Revenue Growth Rate is 64.13%. The short interest was N/A as of 08/31/2011.
10. Stanley Black & Decker Inc. (SWK)
Sector | Industrials |
Industry | Tools & Accessories |
Market Cap | $9,314M |
Beta | 1.39 |
The company develops and produces a variety of security products. The firm has a P/S Ratio of 0.97. SWK is 4.91% above its 52-Week Low. The firm’s 1-Year Fiscal Revenue Growth Rate is 125.03%. The short interest was 3.30% as of 08/31/2011.
We hope this lists helps investors as they do their own due diligence on cheap growth companies.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
