10 Stocks Trading Below Book Value

I just ran a screen to find stocks whose price-to-book ratio is less than 1.0.  This means that the price of the stock is less than the value of the stockholder’s claim on the company’s residual assets.  If the company were to liquidate its assets and satisfy its creditors, the residual assets would be disbursed to the common shareholders.  It’s also worth noting that these 10 companies, non of which has a market capitalization over $6 billion, have had unusually high 5 year net income growth rates.  The minimum 5-year net income growth rate of these companies has been 53% and the maximum has been almost 200%.

These are stocks with some rather unusual qualities–their low price-to-book ratios and their very high net income growth rate–which may warrant closer inspection by fundamental investors looking for value.

Following is some information on these companies:

  • AeroCentury Corp. (AMEX:ACY): This company’s price-to-book ratio is 0.5, it recently traded at $12.07, its 5-year net income growth rate is 53.72%, its market capitalization is $18,630,000.00, its book value per share is $27.31, and its cash per share is $1.26.AeroCentury Corp. is an operating lessor and finance company which specializes in leasing used regional aircraft and engines. The Company’s aircraft and engines are on lease to regional airlines and commercial users in the United States, United Kingdom, Europe, and South America.
  • Alterra Capital Holdings Ltd. (NASDAQ:ALTE): This company’s price-to-book ratio is 0.86, it recently traded at $23.56, its 5-year net income growth rate is 99.76%, its market capitalization is $2,480,000,000.00, its book value per share is $26.30, and its cash per share is $8.16.Alterra Capital Holdings Ltd. provides specialty insurance and reinsurance products to corporations, public entities, property and casualty insurers, and life and health insurers. The Company offers excess and surplus commercial lines insurance; and casualty, property, specialty, life and annuity reinsurance. Alterra operates worldwide.
  • Axis Capital Holdings Limited (NYSE:AXS): This company’s price-to-book ratio is 0.78, it recently traded at $36.03, its 5-year net income growth rate is 55.54%, its market capitalization is $4,230,000,000.00, its book value per share is $50.05, and its cash per share is $8.27.Axis Capital Holdings Limited provides specialty lines and treaty reinsurance on a global basis. Specialty lines primarily includes onshore and offshore energy, aviation and aerospace, commercial property and marine. Treaty reinsurance covers catastrophe risks such as property, Workers’ Compensation, professional liability, casualty, and marine and aviation.
  • Brasil Telecom SA (ADR) (NYSE:BTM): This company’s price-to-book ratio is 0.79, it recently traded at $29.41, its 5-year net income growth rate is 76.51%, its market capitalization is $5,910,000,000.00, its book value per share is $34.68, and its cash per share is $6.56.Brasil Telecom S.A. offers fixed-line telecommunications services in western, central, and southern Brazil. The Company provides local and intrastate telephone services, and interstate long-distance telephone services between states in its concession area. It also offers network interconnection and data transmission services, conference calls, caller ID, and toll-free numbers.
  • Canadian Solar Inc. (NASDAQ:CSIQ): This company’s price-to-book ratio is 0.89, it recently traded at $10.82, its 5-year net income growth rate is 67.78%, its market capitalization is $470,200,000.00, its book value per share is $12.46, and its cash per share is $6.73.Canadian Solar Inc. designs, manufactures, and sells solar module products that convert sunlight into electricity for a variety of uses. The Company’s products include a range of standard solar modules for use in a wide range of residential, commercial, and industrial solar power generation systems.
  • NRG Energy, Inc. (NYSE:NRG): This company’s price-to-book ratio is 0.66, it recently traded at $21.40, its 5-year net income growth rate is 57.69%, its market capitalization is $5,290,000,000.00, its book value per share is $33.59, and its cash per share is $11.94.NRG Energy, Inc. owns and operates a diverse portfolio of power-generating facilities, primarily in the United States. The Company’s operations include energy production and cogeneration facilities, thermal energy production, and energy resource recovery facilities.
  • Transatlantic Holdings, Inc. (NYSE:TRH): This company’s price-to-book ratio is 0.71, it recently traded at $50.65, its 5-year net income growth rate is 60.38%, its market capitalization is $3,160,000,000.00, its book value per share is $68.83, and its cash per share is $4.57.Transatlantic Holdings, Inc. is an international reinsurance organization. The Company’s subsidiaries provide reinsurance on a treaty and facultative basis around the world. Transatlantic structures traditional and non-traditional programs for a full range of property and casualty products, with an emphasis on specialty risks.
  • Tutor Perini Corporation (NYSE:TPC): This company’s price-to-book ratio is 0.89, it recently traded at $24.83, its 5-year net income growth rate is 80.98%, its market capitalization is $1,170,000,000.00, its book value per share is $27.88, and its cash per share is $10.01.Tutor Perini Corporation and its subsidiaries provide general contracting, construction management and design-build services to private clients and public agencies throughout the United States and selected overseas areas.
  • United Fire & Casualty (NASDAQ:UFCS): This company’s price-to-book ratio is 0.76, it recently traded at $21.74, its 5-year net income growth rate is 57.27%, its market capitalization is $569,490,000.00, its book value per share is $27.35, and its cash per share is $6.87.United Fire & Casualty Company and its subsidiaries write property and casualty insurance and life insurance. The Company markets fidelity and surety bonds, reinsurance, ordinary life, annuities, and credit life products. United Fire also underwrites and brokers a limited amount of excess and surplus lines insurance. The Company is licensed primarily in the Midwestern and Western US.
  • Walter Investment Management Corp. (AMEX:WAC): This company’s price-to-book ratio is 0.79, it recently traded at $17.20, its 5-year net income growth rate is 199.79%, its market capitalization is $443,790,000.00, its book value per share is $21.54, and its cash per share is $4.43.Walter Investment Management Corporation is a mortgage real estate investment trust. The Company is focused on the purchase and securitization of single family mortgage loan pools and subordinate mortgage-backed securities purchased in bulk directly from financial institutions.

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