The Price/Book Value ratio is a valuation metric that focuses on whether a company is potentially undervalued by its assets. If the company has a P/BV ratio that is less than 1 it's technically trading below the “break up” value and could be a strong value investment candidate. By the same token, it could indicate that something is fundamentally wrong with the company. Either way it should reviewed further.
The 1-year fiscal revenue growth rate is a performance ratio. This metric takes a relevant time period that illustrates how well a company has done over several quarters. As well, it helps take away focus from any potential highlight quarter that might skew the perception of a how well a company is actually performing. Given the currently unstable and uncertain economic period, we feel that this just one way to potentially identify companys that are navigating the situation more successfully than others.
We screened initially for companies that are trading below break up value (P/BV Ratio>1). From this narrowed pool we then indentified companies with strong growth (1-year fiscal revenue growth rate>15%) and that have outperformed the S&P 500 in the last month. We did not screen by sector or market capitalization.
1. Xyratex, Ltd. (XRTX)
Sector | Technology |
Industry | Data Storage |
Market Cap | $354M |
Beta | 1.95 |
The company provides modular storage process technology and data storage solutions. The company's stock price increased by 43.23% in the last month. Xyratex has a P/B ratio of 0.98. The company’s 1-year fiscal revenue growth rate is 84.57%. The short interest was 8.60% as of 09/30/2011.
2. AerCap Holdings N.V. (AER)
Sector | Industrials |
Industry | Aerospace & Defense |
Market Cap | $1,658M |
Beta | 1.85 |
The company trades and leases aircraft along with engine parts sales worldwide. The company's stock price increased by 7.03% in the last month. AerCap has a P/B ratio of 0.72. The company’s 1-year fiscal revenue growth rate is 82.85%. The short interest was 0.40% as of 09/30/2011.
3. Assured Guaranty Ltd. (AGO)
Sector | Financial Services |
Industry | Insurance - Specialty |
Market Cap | $2,247M |
Beta | 2.70 |
Assured offers credit enhancement products for structured finance, public finance, and mortgage markets. The company's stock price increased by 8.73% in the last month. Assured Guaranty has a P/B ratio of 0.57. The company’s 1-year fiscal revenue growth rate is 52.79%. The short interest was N/A as of 09/30/2011.
4. Limelight Networks, Inc. (LLNW)
Sector | Industrials |
Industry | Business Services |
Market Cap | $329M |
Beta | 1.08 |
The company offers content delivery to network services. Limelight's share price has increased by 24.03% in the last month. Limelight has a P/B ratio of 0.99. The company’s 1-year fiscal revenue growth rate is 39.24%. The short interest was N/A as of 09/30/2011.
5. United Microelectronics Corp. (UMC)
Sector | Technology |
Industry | Semiconductors |
Market Cap | $5,325M |
Beta | 1.04 |
The company designs and manufactures semiconductors. The company's stock price increased by 7.33% in the last month. United Microelectronics has a P/B ratio of 0.77. The company’s 1-year fiscal revenue growth rate is 38.35%. The short interest was N/A as of 09/30/2011.
6. Boyd Gaming Corporation. (BYD)
Sector | Consumer Cyclical |
Industry | Resorts & Casinos |
Market Cap | $541M |
Beta | 2.60 |
Boyd is a gaming company. The company's stock price increased by 8.85% in the last month. Boyd has a P/B ratio of 0.45. The company’s 1-year fiscal revenue growth rate is 30.46%. The short interest was N/A as of 09/30/2011.
7. ArcelorMittal SA. (MT)
Sector | Basic Materials |
Industry | Steel |
Market Cap | $30,949M |
Beta | 2.18 |
The company is a global steel producer with operations around the world. The company's stock price increased by 10.94% in the last month. ArcelorMittal has a P/B ratio of 0.49. The company’s 1-year fiscal revenue growth rate is 27.87%. The short interest was 1.10% as of 09/30/2011.
8. LG Display Company, Ltd. (LPL)
Sector | Technology |
Industry | Consumer Electronics |
Market Cap | $6,949M |
Beta | 1.66 |
LG Display manufactures TFT-LCD panels for a variety of consumer electronic devices. The company's stock price increased by 12.51% in the last month. LG Display has a P/B ratio of 0.75. The company’s 1-year fiscal revenue growth rate is 27.32%. The short interest was N/A as of 09/30/2011.
9. Valero Energy Corporation. (VLO)
Sector | Energy |
Industry | Oil & Gas Refining & Marketing |
Market Cap | $13,514M |
Beta | 1.15 |
North America’s largest independent petroleum refiner and marketer, Valero takes fuel from the distiller to the gas pump. The company's stock price increased by 7.56% in the last month. Valero has a P/B ratio of 0.85. The company’s 1-year fiscal revenue growth rate is 27.30%. The short interest was 2.50% as of 09/30/2011.
10. Orient-Express Hotels, Ltd. (OEH)
Sector | Consumer Cyclical |
Industry | Lodging |
Market Cap | $1,000M |
Beta | 3.00 |
The company focuses on high-end luxury and leisure markets. The company's stock price increased by 12.79% in the last month. Orient-Express has a P/B ratio of 0.92. The company’s 1-year fiscal revenue growth rate is 26.84%. The short interest was 7.90% as of 09/30/2011.
We hope this list helps investors as they do their own due diligence on companies that are trading below P/BV ratio, strong top line growth, and experiencing strong bullish momentum.
Disclosure: I am long MT.
