- The price to earnings (P/E) ratio helps investors to determine whether a stock is overvalued or undervalued.
- While growth investors go for stocks with higher P/E ratios, value investors look for low P/E stocks.
- This article covers 10 ASX-listed stocks across different sectors with a P/E ratio of less than 10.
The price to earnings (P/E) ratio is one of the widely used metrics to evaluate a stock’s performance. The ratio helps investors to determine whether the stock is overvalued or undervalued. Depending on this evaluation, investors pick stocks.
While growth investors go for stocks with higher P/E ratios, value investors look for low P/E stocks.
According to experts, investors should compare P/E ratios of stocks operating in the same industry.
Here are 10 ASX-listed stocks across different sectors with a P/E ratio of less than 10.
(However, one needs to do thorough research before taking any exposure as sinusoidal market trends are evident)
Acumentis Group Ltd (ASX:ACU)
Acumentis is a property assessment firm. According to the preliminary results for the year ending 30 June 2021, the revenue was up 18% to AU$46.4million, with operating profit up 199% to AU$2.5 million compared to last year.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at AU$5 million. The company has predicted growth for FY22. The company has also invested in technology and geophysical coverage, service offering and client diversification, during the given period.
Source: © Goodstocker | Megapixl.com
The company’s shares have yielded a return of over 62% in one year. Acumentis has a P/E ratio of 8.7x (as of the last closing on Monday).
APN Convenience Retail REIT (ASX:AQR)
APN Convenience Retail REIT is an ASX-listed Real Estate Investment Trust (REIT). It has a portfolio of service stations & convenience retail assets across Australia.
Earlier this month, APN Convenience Retail REIT (AQR) announced the acquisition of six more petrol stations from OTR on a sale and leaseback agreement.
The properties are situated in Naracoorte, Gepps Cross, Glenunga, Kapunda, West Beach and Murray Bridge Eastside. The portfolio settlement is expected to happen before the end of June 2021. Following this, the company’s portfolio will comprise 103 properties valued at AU$655 million.
The company’s shares have delivered a return of 2.8% in the past one year. APN Convenience Retail REIT has a P/E ratio of 8.05x.
AngloGold Ashanti Ltd DR (ASX:AGG)
South Africa-based AngloGold Ashanti is an independent global gold mining company with projects in key gold-producing regions across the world.
The gold miner recently submitted an acquisition proposal to the board of Corvus Gold. AngloGold Ashanti owns a nearly 20% indirect stake in Corvus. As per the acquisition proposal, the South African miner, under a wholly owned subsidiary, would acquire all outstanding common shares of Corvus at CA$4 per Corvus share on a cash basis.
The company’s shares have given a negative return of nearly 47% in one year, however, AngloGold Ashanti has a P/E ratio of 8.02x.
Baumart Holdings Ltd (ASX:BMH)
Baumart Holdings procures, supplies and distributes building products to residential and commercial construction industries.
The company has not released any major trading updates since February this year. In 1HFY21, the Group saw its sales revenue surged 25% to AU$2.51 million. The firm’s net profit increased by a massive 2,232% to AU$3.56 million. The Group’s total assets increased by 51% to AU$10 million.
The stock of Baumart Holdings has given a negative return of 5% in one year. The P/E ratio stands at 7.9x.
Austal Ltd (ASX:ASB)
Austal is a vessel builder engaged in designing, building, and delivering commercial and defence vessels for navies, governments, and ferry operators across the globe.
The company recently announced it was awarded a US$44 million Littoral Combat Ship (LCS) contract modification.
A couple of weeks back, the company had released an earnings guidance, saying that it expected to generate FY21 EBIT in the range of AU$112 million to AU$118 million.
Shares of Austal have yielded a negative return of 34.64% in one year. Austal has a P/E ratio of 7.7x.
Source: © Dizain777 | Megapixl.com
Aspen Group Ltd (ASX:APZ)
Aspen Group is a property group which manages holiday and accommodation parks.
Recently, Aspen Group purchased the Wodonga Gardens Retirement Estate in West Wodonga, Victoria, for AU$6.1 million. Aspen entered conditional contracts with Wodonga Gardens Estate Pty Ltd. The settlement is expected to occur in August.
With this, Aspen’s retirement assets would increase to seven across four states.
Aspen’s shares have offered return of 35.6% in one year. Aspen has a P/E ratio of 7.6x.
Source: ©Miflippo | Megapixl.com
Bisalloy Steel Group Ltd (ASX:BIS)
Bisalloy Steel Group manufactures high-strength structural, wear-resistant and armour steel plates using quenched and tempered steel.
According to the unaudited preliminary financial results for FY21, Bisalloy’s operating EBITDA surged 24.5% compared to the last year. While the revenue was down 5.3%, net profit after tax (NPAT) was up 30.9% compared to the last year.
Bisalloy’s earnings per share (EPS) surged 29.5% compared to the last year.
Shares of Bisalloy have given a negative return of 24.26% in one year. Bisalloy has a P/E ratio of 7.4x.
Axiom Properties Ltd (ASX:AXI)
Axiom Properties is involved in property investment and development business. The company’s major focus is on providing property solutions.
In the latest update on its large-format retail project in Butler WA, Axiom Properties announced that it had settled the purchase of the major lot within the wider land holding of the Woolworths Butler Central Shopping Centre. As a result, the company can now begin construction of the project.
Shares of Axiom Properties have given a return of 92% in one year. The P/E ratio stands at 6.9x.
Ava Risk Group Ltd (ASX:AVA)
Ava Risk Group is involved in providing risk management services and technologies to clients across sectors.
In its FY2021 trading update and outlook, Ava Risk Group forecast a total revenue increase of 41% on the prior corresponding period. “We are pleased to report forecast FY2021 revenue and EBITDA at the top end of our guidance range, showing strong revenue and profit margin growth,” said Ava Risk Group CEO Rob Broomfield.
Shares of Ava Risk Group have given a return of 133.33% in one year. The P/E ratio stands at 6.8x.
Anova Metals Ltd (ASX:AWV)
Anova Metals is engaged in exploring and developing mineral properties in Australia and the United States.
The company recently began biology and cultural surveys at its flagship Big Springs Gold Project in the US state of Nevada.
Shares of Anova Metals have offered a negative return of 36.6% in one year. The P/E ratio stands at 5.2x.
READ MORE: Which are the top 5 ASX 200 dividend shares?