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Price multiples are helpful for gauging the price of a stock relative to a measure such as earnings (P/E) or cash flow (P/CF). When stocks have lower ratios than their industry averages, it may indicate that they are undervalued. This is especially true for stocks that appear undervalued by several ratios.

We ran a screen on dividend stocks for those that appear undervalued to their industry averages based on three measures: TTM P/E, PEG, and TTM P/CF. We also screened for stocks with high liquidity (current ratios > 3), which indicates a more sustainable dividend payment.

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 dividend yield.

1. Maxim Integrated Products Inc. (NASDAQ:MXIM): Designs, develops, manufactures, and markets a range of linear and mixed-signal integrated circuits worldwide. Market cap of $7.47B. Dividend yield at 3.44%, payout ratio at 49.63%. Current ratio at 3.89. TTM P/E at 15.43 vs. industry average at 22.63. PEG at 1.07 vs. industry average at 1.58. TTM P/CF at 10.64 vs. industry average at 16.68. The stock has gained 7.65% over the last year.

2. Linear Technology Corp. (NASDAQ:LLTC): Designs, manufactures, and markets a line of linear integrated circuits. Market cap of $6.89B. Dividend yield at 3.18%, payout ratio at 39.08%. Current ratio at 7.51. TTM P/E at 12.7 vs. industry average at 22.63. PEG at 1.31 vs. industry average at 1.58. TTM P/CF at 11.37 vs. industry average at 16.68. The stock has lost 10% over the last year.

3. Houston Wire & Cable Company (NASDAQ:HWCC): Distributes specialty wire and cable products in the U. Market cap of $220.53M. Dividend yield at 2.90%, payout ratio at 31.83%. Current ratio at 4.37. TTM P/E at 11.39 vs. industry average at 17.9. PEG at 0.76 vs. industry average at 1.42. TTM P/CF at 9.78 vs. industry average at 13.42. The stock is a short squeeze candidate, with a short float at 10.25% (equivalent to 15.59 days of average volume). The stock has had a couple of great days, gaining 7.54% over the last week.

4. KLA-Tencor Corporation (NASDAQ:KLAC): Engages in the design, manufacture, and marketing of process control and yield management solutions for the semiconductor and related nanoelectronics industries. Market cap of $8.17B. Dividend yield at 2.97%, payout ratio at 22.12%. Current ratio at 4.90. TTM P/E at 10.06 vs. industry average at 22.59. PEG at 1.06 vs. industry average at 1.61. TTM P/CF at 8.9 vs. industry average at 16.87. The stock has gained 27.64% over the last year.

5. Analog Devices Inc. (NASDAQ:ADI): Engages in the design, manufacture, and marketing of analog, mixed-signal, and digital signal processing integrated circuits used in industrial, communication, computer, and consumer applications. Market cap of $10.49B. Dividend yield at 2.84%, payout ratio at 32.66%. Current ratio at 8.35. TTM P/E at 12.62 vs. industry average at 22.58. PEG at 1.48 vs. industry average at 1.58. TTM P/CF at 10.76 vs. industry average at 16.85. The stock has lost 4.17% over the last year.

6. Advance America, Cash Advance Centers Inc. (NYSE:AEA): Provides cash advance services in the United States, the United Kingdom, and Canada. Market cap of $567.58M. Dividend yield at 2.75%, payout ratio at 27.68%. Current ratio at 5.0. TTM P/E at 9.77 vs. industry average at 10.36. PEG at 0.65 vs. industry average at 0.94. TTM P/CF at 8.38 vs. industry average at 8.89. This is a risky stock that is significantly more volatile than the overall market (beta = 2.78). The stock is a short squeeze candidate, with a short float at 6.87% (equivalent to 6.95 days of average volume). The stock has had a good month, gaining 12.36%.

7. Xilinx Inc. (NASDAQ:XLNX): Designs, develops, and markets programmable platforms in North America, the Asia Pacific, Europe, and Japan. Market cap of $8.57B. Dividend yield at 2.33%, payout ratio at 31.03%. Current ratio at 6.57. TTM P/E at 14.84 vs. industry average at 22.59. PEG at 1.23 vs. industry average at 1.61. TTM P/CF at 13.19 vs. industry average at 16.87. The stock has gained 16.49% over the last year.

8. Cascade Corp. (NYSE:CASC): Manufactures loading devices and replacement parts primarily for the lift-truck and construction industry. Market cap of $537.38M. Dividend yield at 2.06%, payout ratio at 27.78%. Current ratio at 3.67. TTM P/E at 10.19 vs. industry average at 15.2. PEG at 0.93 vs. industry average at 1.6. TTM P/CF at 8.42 vs. industry average at 9.92. The stock has had a couple of great days, gaining 15.28% over the last week.

9. Resources Connection Inc. (NASDAQ:RECN): Provides professional services in provides finance, accounting, risk management and internal audit, corporate advisory, strategic communications and restructuring, information management, human capital, supply chain management, actuarial, and legal and regulatory services in support of client-led projects and initiatives. Market cap of $474.28M. Dividend yield at 1.86%, payout ratio at 29.41%. Current ratio at 3.93. TTM P/E at 18.52 vs. industry average at 24.85. PEG at 1.23 vs. industry average at 1.68. TTM P/CF at 12.82 vs. industry average at 14.74. The stock has lost 42.04% over the last year.

10. US Physical Therapy Inc. (NYSE:USPH): Operates outpatient physical and occupational therapy clinics in the United States. Market cap of $224.72M. Dividend yield at 1.69%, payout ratio at 16.83%. Current ratio at 3.35. TTM P/E at 13.46 vs. industry average at 15.31. PEG at 0.86 vs. industry average at 1.21. TTM P/CF at 10 vs. industry average at 11.13. The stock has lost 0.94% over the last year.

11. Wolverine World Wide Inc. (NYSE:WWW): Engages in manufacturing, sourcing, marketing, licensing, and distributing footwear, apparel, and accessories to the retail sector primarily in the United States, Europe, and Canada. Market cap of $1.76B. Dividend yield at 1.32%, payout ratio at 17.78%. Current ratio at 3.18. TTM P/E at 14.37 vs. industry average at 14.42. PEG at 1.06 vs. industry average at 1.65. TTM P/CF at 12.74 vs. industry average at 17.36. The stock has gained 17.18% over the last year.

12. Broadcom Corp. (NASDAQ:BRCM): Designs and develops semiconductors for wired and wireless communications. Market cap of $16.33B. Dividend yield at 1.19%, payout ratio at 19.99%. Current ratio at 3.65. TTM P/E at 18.25 vs. industry average at 22.63. PEG at 1.19 vs. industry average at 1.58. TTM P/CF at 14.44 vs. industry average at 16.68. The stock has performed poorly over the last month, losing 15.23%.

*Price multiples sourced from Fidelity, 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.

Source: 12 Highly Undervalued Dividend Stocks With Strong Liquidity