Five Undervalued Companies With Efficient Management Teams

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Includes: CAJ, IMO, PLXS, SHPG, WMS-OLD
by: Kapitall

The following is a list of undervalued companies, as defined by the PEG ratio. In addition, the management teams of these companies have proven themselves to be more efficient than their competitors over the last five years.

To create the list, we started with a universe of low PEG stocks. We then reduced the size of the universe by only focusing on management teams that have managed to achieve higher return on assets, return on equity and return on invested capital, when compared to competitors.

We're not going to go into detailed analysis for each company. The goal here is to give a growth-oriented investors a starting point for their own analysis.

Management data sourced from Reuters, short float and PEG data sourced from Finviz.

Interactive Chart: Press Play to see how analyst ratings have fluctuated for all the stocks mentioned below.

The list has been sorted by the PEG ratio.

1. ViroPharma Inc. (VPHM): Biotechnology Industry. Market cap of $1.28B. PEG ratio at 0.88. 5-year average return on assets at 9.69% vs. industry average at 5.29%. 5-year average return on investments at 10.38% vs. industry average at 6.38%. 5-year return on equity at 13.86% vs. industry average at 8.37%. Short float at 8.39%, which implies a short ratio of 7.25 days. The stock has gained 118.83% over the last year.

2. Canon Inc. (NYSE:CAJ): Photographic Equipment & Supplies Industry. Market cap of $58.81B. PEG ratio at 0.88. 5-year average return on assets at 8.81% vs. industry average at 5.90%. 5-year average return on investments at 12.69% vs. industry average at 8.61%. 5-year return on equity at 12.98% vs. industry average at 9.40%. Short float at 0.07%, which implies a short ratio of 2.6 days. The stock has gained 25.59% over the last year.

3. Plexus Corp. (NASDAQ:PLXS): Printed Circuit Boards Industry. Market cap of $1.17B. PEG ratio at 0.88. 5-year average return on assets at 8.25% vs. industry average at 6.22%. 5-year average return on investments at 12.72% vs. industry average at 10.71%. 5-year return on equity at 15.13% vs. industry average at 13.11%. Short float at 5.54%, which implies a short ratio of 6.77 days. The stock has gained 9.04% over the last year.

4. Imperial Oil Ltd. (NYSEMKT:IMO): Oil & Gas Refining & Marketing Industry. Market cap of $31.95B. PEG ratio at 0.90. 5-year average return on assets at 17.69% vs. industry average at 12.16%. 5-year average return on investments at 25.09% vs. industry average at 15.10%. 5-year return on equity at 36.73% vs. industry average at 20.99%. Short float at 0.63%, which implies a short ratio of 10.17 days. The stock has lost -1.44% over the last year.

5. WMS Industries Inc. (NYSE:WMS-OLD): Recreational Goods Industry. Market cap of $2.49B. PEG ratio at 0.91. 5-year average return on assets at 9.98% vs. industry average at 6.42%. 5-year average return on investments at 11.61% vs. industry average at 8.16%. 5-year return on equity at 14.66% vs. industry average at 8.78%. Short float at 8.12%, which implies a short ratio of 5.5 days. The stock has lost -1.31% over the last year.

Disclosure: No positions