Three ASX shares that are trading at a bargain

Summary

  • Austal witnessed a 29% increase in its net profits on the prior corresponding period in H1 FY21.
  • St Barbara increased its earnings 26.7% from AU$100.26 million in 2019 to AU$127.03 million in 2020.
  • Regis has been clocking reasonably stable profits over the last few years, ranging between AU$161 million to AU$200 million in earnings.

The Australian market is trading near its 52-week high of 7096.9. The global scenario has an even better-looking picture as US indices are trading near all-time high levels. Capital has again started to flow into equities as investors are gaining more confidence regarding the economic rebound amid aggressive vaccinations drives.

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The unprecedented amounts of economic aids by the Australian government has helped the economy to snap out of a recession. With the volatility in the Australian markets coming down and the benchmark index sustaining at higher levels, here’s a list of few stocks that are still trading at a bargain level and might soon cope up with the broader markets.

  1. Austal Limited (ASX:ASB)

This Australian shipbuilder hasn’t performed quiet well in the recent times, which reflects in its share price trajectory. Austal’s share price has plummeted 15.8% in the past 12 months, and 22% in the last 6 months.

The company has been integral in providing the Australian Border Force and US Navy and with vessels. Hence, the development of America and Australia withdrawing from Afghanistan might have investors concerned. Despite that, the company is moving ahead with the construction of a ship-building facility in Alabama, USA.

In its recent FY21 half-year update, he company witnessed a decent 29% increase in its net profits to AU$52.4 million over the prior corresponding period (pcp). With growing profits and a declining share price, Austal’s P/E ratio has reduced to 8.8 times, the lowest it has been since 2013 (excluding negative periods).

  1. St Barbara Limited (ASX:SBM)

The investors have been shying away from this ASX-list gold mining company since the last year. St Barbara’s share price is down 12.5% from a year ago, and 28% down in the last six months.

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Being a gold mining company in the ASX 200, the company’s share price is loosely tied to the value of the precious metal. Comparatively, the gold spot price has taken a hit by 12.6% in the last six months.

Furthermore, St Barbara increased its earnings 26.7% from AU$100.26 million to AU$127.03 million, between 2019 and 2020. Due to an increase in the company’s earnings while its share price trended downward, its earnings multiple has fallen to 11.6 times. To put it in perspective, the metals and mining industry average is around 13.3 times.

Read More: St Barbara (ASX:SBM) Ropes in Macmahon Holdings for Mining Services at Gwalia

  1. Regis Resources Limited (ASX:RRL)

Another gold miner on the list is Regis, which has suffered a decent 31% selloff over the last year. On a six-month timescale, the company’s share price is down 41%.

Looking at the financial performance, Regis has clocked stable profits over the last few years. These range between AU$161 million to AU$200 million in earnings. During this period, the gold miner has managed to grow its revenue from AU$590 million to AU$786 million. This has further potential to increase, with the company acquiring a AU$900 million stake in the Tropicana gold project.

Read More: Regis Resources Reports Strong Quarter of Cash Generation


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