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In the never-ending search for potentially undervalued stocks, one indicator is the ratio levered free cash flow/enterprise value. Companies with higher ratios appear more undervalued relative to their levered free cash flows.

Levered free cash flow is the free cash flow after deducting interest payments on outstanding debt. Enterprise value is the sum of the firm’s value from all ownership sources: market cap, outstanding debt, and preferred shares. From this value we subtract cash holdings because, in the event of a takeover, that cash would be used towards the takeover price.

We ran a screen on US-traded stocks from the BRIC countries (Brazil, Russia, India, and China) for those with the highest ratios of levered free cash flow to enterprise value, possibly indicating that they are undervalued.

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.?

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 these stocks should be trading higher? Use this list as a starting point for your own analysis.

List sorted by levered free cash flow/enterprise value.

1. Brasil Telecom S.A. (BTM): Provides integrated telecommunication service for residential customers, companies, and governmental agencies in Brazil. Market cap of $3.79B. Levered free cash flow/enterprise value at 44.96% (levered free cash flow at 1.92B and enterprise value at 4.27B). The stock has had a couple of great days, gaining 10.63% over the last week.

2. Fushi Copperweld, Inc. (NASDAQ:FSIN): Develops, designs, manufactures, markets, and distributes bimetallic wire products, principally copper-clad aluminum (CCA) and copper-clad steel (CCS). Market cap of $271.60M. Levered free cash flow/enterprise value at 40.99% (levered free cash flow at 44.16M and enterprise value at 107.74M). The stock is a short squeeze candidate, with a short float at 33.46% (equivalent to 19.31 days of average volume). It's been a rough couple of days for the stock, losing 6.69% over the last week.

3. CTC Media, Inc (NASDAQ:CTCM): Operates as an independent broadcasting company in Russia. Market cap of $1.56B. Levered free cash flow/enterprise value at 35.41% (levered free cash flow at 513.41M and enterprise value at 1.45B). This is a risky stock that is significantly more volatile than the overall market (beta = 2.46). The stock has had a couple of great days, gaining 8.05% over the last week.

4. Tele Norte Leste Participacoes S.A. (NYSE:TNE): Provides telecommunication services primarily in Brazil. Market cap of $4.67B. Levered free cash flow/enterprise value at 16.06% (levered free cash flow at 2.19B and enterprise value at 13.64B). Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 5.12%, current ratio at 1.48, and quick ratio at 1.47. The stock has had a couple of great days, gaining 9.13% over the last week.

5. Guangshen Railway Co. Ltd. (NYSE:GSH): Provides passenger and freight transportation services on the Shenzhen-Guangzhou-Pingshi railway in the People's Republic of China. Market cap of $2.56B. Levered free cash flow/enterprise value at 15.13% (levered free cash flow at 344.95M and enterprise value at 2.28B). Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 3.83%, current ratio at 1.8, and quick ratio at 1.71. The stock has lost 7.93% over the last year.

6. China XD Plastics Company Ltd. (NASDAQ:CXDC): Rubber & Plastics Industry. Market cap of $244.30M. Levered free cash flow/enterprise value at 15.01% (levered free cash flow at 17.90M and enterprise value at 119.28M). The stock has had a couple of great days, gaining 7.08% over the last week.

7. Sohu.com Inc. (NASDAQ:SOHU): Engages in the brand advertising, online gaming, sponsored search, and wireless businesses in China. Market cap of $1.98B. Levered free cash flow/enterprise value at 13.85% (levered free cash flow at 164.86M and enterprise value at 1.19B). The stock has performed poorly over the last month, losing 14.59%.

8. AsiaInfo-Linkage,Inc. (NASDAQ:ASIA): Provides telecommunications software solutions and information technology (IT) products and services to telecommunications carriers and other enterprises in the People's Republic of China. Market cap of $628.04M. Levered free cash flow/enterprise value at 12.41% (levered free cash flow at 47.75M and enterprise value at 384.89M). The stock is a short squeeze candidate, with a short float at 27.7% (equivalent to 10.85 days of average volume). The stock has had a good month, gaining 11.64%.

9. China Eastern Airlines Corp. Ltd. (NYSE:CEA): Operates in civil aviation industry. Market cap of $4.42B. Levered free cash flow/enterprise value at 11.62% (levered free cash flow at 755.28M and enterprise value at 6.50B). This is a risky stock that is significantly more volatile than the overall market (beta = 2.26). The stock has lost 28.73% over the last year.

10. GOL Linhas A (NYSE:GOL): Operates as a low-cost low-fare airline in Latin America. Market cap of $2.26B. Levered free cash flow/enterprise value at 11.39% (levered free cash flow at 463.73M and enterprise value at 4.07B). This is a risky stock that is significantly more volatile than the overall market (beta = 2.02). The stock is a short squeeze candidate, with a short float at 7.09% (equivalent to 5.26 days of average volume). The stock has had a couple of great days, gaining 20.81% over the last week.

11. TIM Participacoes S.A. (NYSE:TSU): Provides mobile telecommunications services through global system mobile (GSM) technology to business and individual customers in Brazil. Market cap of $6.27B. Levered free cash flow/enterprise value at 10.92% (levered free cash flow at 1.29B and enterprise value at 11.81B). Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 4.96%, current ratio at 1.37, and quick ratio at 1.31. The stock has had a couple of great days, gaining 10.14% over the last week.

12. Patni Computer Systems Limited (NYSE:PTI): An information technology (IT) services company, provides a range of IT services through integrated onsite and offshore delivery locations. Market cap of $1.17B. Levered free cash flow/enterprise value at 10.34% (levered free cash flow at 115.78M and enterprise value at 1.12B). Exhibiting strong upside momentum--currently trading 8.35% above its SMA20, 24.4% above its SMA50, and 11.6% above its SMA200. The stock has had a good month, gaining 20.65%.

13. Melco Crown Entertainment Ltd. (NASDAQ:MPEL): Engages in the development, ownership, and operation of casino gaming and entertainment resort facilities primarily in Macau. Market cap of $5.23B. Levered free cash flow/enterprise value at 10.31% (levered free cash flow at 698.27M and enterprise value at 6.77B). The stock has had a couple of great days, gaining 11.89% over the last week. The stock has performed poorly over the last month, losing 16.61%.

14. China Biologic Products, Inc. (NASDAQ:CBPO): Engages in the research, development, manufacturing, and sale of plasma-based pharmaceutical products. Market cap of $268.28M. Levered free cash flow/enterprise value at 10.06% (levered free cash flow at 18.64M and enterprise value at 185.36M). The stock is a short squeeze candidate, with a short float at 5.36% (equivalent to 68.36 days of average volume). The stock has had a couple of great days, gaining 43.64% over the last week.

*Levered FCF and enterprise value data sourced from Yahoo! Finance, all other data sourced from Finviz.

Source: 14 BRIC Stocks Undervalued By Levered Free Cash Flows