What are the top 25 Undervalued Stocks (5 by 5 market cap classes) in the Basic Materials Sector? I have used the analysis tools on the website stockcalc.com to generate the content of this blog post. Have a look down the Welcome page for some of the free lists and reports available www.stockcalc.com/Welcome as well.
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Undervalued Stocks – Basic Materials Sector
Today our focus is the basic materials sector and we are looking at companies that are undervalued based on our Weighted Average Valuation (WAV) calculation which we do for the 8000 stocks each night in the StockCalc database. The basic materials sector includes companies that manufacture chemicals, building materials, mining and metal refining as well as lumber and paper products. These companies tend to be very sensitive to economic cycles.
We generate our Weighted Average Valuation (WAV) from 5 models and Analyst consensus. Overview of the models used: Discounted Cash Flow (DCF value) is a valuation technique where cash flow projections are discounted back to the present to calculate value per share. A Comparables model values the company on the basis of ratios from selected comparable companies. We actually do 3 types of comparables models. An Adjusted Book Value (ABV) is calculated by multiplying book value per share by its historical Price to Book ratio. If we have Analyst coverage we look at the consensus target price.
Today’s Data – Basic Materials
In the table below we can see the close price (Dec 1st 2020) and valuation for these companies along with the ratio of valuation to price as well as their market cap class and average trading volume.
|Symbol||Company Name||Close Price($)||Valuation ($)||Value/ Price||Class||Average Volume|
|KL-N||Kirkland Lake Gold||41.28||53.62||1.30||Large Cap||2439070|
|SBSW-N||Sibanye Stillwater||14.55||18.13||1.25||Large Cap||3793369|
|IFF-N||Intl Flavors & Fragrances||111.62||137.67||1.23||Large Cap||1375767|
|DD-N||DuPont de Nemours||63.53||72.00||1.13||Large Cap||4505446|
|AUY-N||Yamana Gold||5.48||7.68||1.40||Mid Cap||15498257|
|AGI-N||Alamos Gold||8.69||11.54||1.33||Mid Cap||3159246|
|GRA-N||W R Grace||55.79||62.14||1.11||Mid Cap||483889|
|USCR-Q||US Concrete||36.95||65.00||1.76||Small Cap||222823|
|LOMA-N||Loma Negra Cia Industria||5.77||9.65||1.67||Small Cap||521149|
|EGO-N||Eldorado Gold||13.03||20.01||1.54||Small Cap||3599517|
|PQG-N||PQ Group Holdings||13.07||18.07||1.38||Small Cap||214386|
|SSRM-Q||SSR Mining||19.63||26.43||1.35||Small Cap||2743117|
|GORO-A||Gold Resource||3.08||5.21||1.69||Micro Cap||1522576|
|LUC-T||Lucara Diamond||0.52||0.73||1.40||Micro Cap||124675|
|ATY-X||Atico Mining||0.53||0.74||1.40||Micro Cap||108578|
|AGLD-X||Austral Gold||0.16||0.20||1.25||Micro Cap||167000|
|RBX-X||Robex Resources||0.40||0.49||1.23||Micro Cap||79300|
|NIM-X||Nicola Mining||0.11||0.32||3.01||Nano Cap||180500|
|CGA-N||China Green Agriculture||2.48||5.50||2.22||Nano Cap||60612|
|SHL-X||Spruce Ridge Resources||0.10||0.14||1.39||Nano Cap||272700|
|ITP-A||IT Tech Packaging||0.68||0.80||1.19||Nano Cap||2007567|
|SAE-X||Sable Resources||0.20||0.24||1.19||Nano Cap||634102|
N-NYSE, Q-Nasdaq, A-American, T-Toronto, X-Toronto Venture
Lets look at a few companies…
Lets look at a couple of the companies on this list to get a better understanding of them.
Sibanye-Stillwater is an independent precious metal mining group, producing a unique mix of metals that includes gold and the platinum group metals. Its projects include Burnstone, Kloof & driefontein decline, SOFS, Blitz, Altar and Marathon.
Alamos Gold Inc is engaged in the exploration, mine development and extraction of precious metals. It owns and operates the Mulatos mine and holds the mineral rights to the Salamandra group of concessions in the State of Sonora, Mexico.
Lucara Diamond Corp is a diamond mining developing and operating diamond properties in Africa. Its Karowe Mine is located in Botswana where it owns three prospecting licenses.
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