With the recent shakeup with the markets of late, a large part of that being the war in Ukraine, there have been many shifts in asset pricing. Shifts in pricing often leads to more value in the company compared to the price paid. The stocks covered today hold an Intrinsic Value Score* of 0.94 or higher and are sitting below the 200 day moving average price by at least 20%. This means they are positioned well on a fundamental level based on reporting numbers (does not take into consideration real world movements and future considerations). They are also positioned at a reasonable entry price compared with previous prices the company has been trading at.
Platinum Investment Management Ltd (PTM.asx)
At the time of this report, PTM is trading around $2.20, falling from its highs in 2018 of over $8. The price is now lower than ever and sitting on a 10% dividend yield. Getting back over $8 and holding the 10% rate would mean close to a 40% dividend on initial capital. An issue here is the dividend is close to the Earnings Per Share rate, meaning the capital is considered best spent by paying shareholders rather than investing in the company further.
Intrinsic score of 1.88 or value estimate of $6.33 shows good room for growth while the price is 31% below the 200 day average price. Tell us your pros on cons of this company in the comments.
Magellan Financial Group Ltd (MFG.asx)
MFG is trading around $16.45, over a 50% discount to the average price over 200 days. With an intrinsic value score of 1.88 or value of $46.15. this share seems to have lost the hearts of investors and been crumbling. The earnings per share is about 10%, while a dividend yield is over 13%, showing some disparity in the payouts to investors. Staffing issues have been a concern to, with the Australian employment market struggling to find and keep workers even with higher pay and other incentives.
Codan Limited (CDN.asx)
Moving away from the financial sector for a moment, lets take a look at a manufacturer of communications and mining products.
With an average price 37% higher than today’s price, and an intrinsic value score of 0.94, this stock is positioned nicely in the value arena. The dividends aren’t too bad compared with the earnings per share, showing the directors are able to utilise some of the profits in the company.
Ansell Limited (ANN.asx)
Ansell is the final installment of this article, representing the medical supplies space. The intrinsic score here sits at 1.17 and the price is 22% below the 200 day moving average price. The dividend does appear to be a concern in terms of a higher yield compared to the earnings per share, meaning the capital or cash at bank is taking a hit for the moment. Possible to stop the bleed of shareholders leaving.