Top Twenty five (25) Undervalued Stocks by Market Cap Class December 2020 : Basic Materials Sector

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 to generate the content of this blog post. Have a look down the Welcome page for some of the free lists and reports available 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
NTR-N Nutrien 49.46 55.59 1.12 Large Cap 1357610
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
CLF-N Cleveland-Cliffs 11.86 14.80 1.25 Mid Cap 14572250
BTG-A B2Gold 5.74 7.12 1.24 Mid Cap 9278520
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
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
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
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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