Value stocks are stocks that trade at a lower price as compared to the stock prices of companies in the same industry. However, value stocks are considered risky due to uncertain market stance towards them.
Value investors purchase companies that are valued lower as they focus on steady income over swift gains.
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Let’s have a look at 6 NZX-listed value stocks that can be explored in May 2021.
Summerset’s underlying profit was down by 7% to $98 million, while NPAT was up by 32% to $231 million for 2020. The Group sold 404 new occupation rights and made 381 resales in the year. It also paid a dividend of 13cps for 2020.
Summerset is in a strong position and has solid growth prospects for the future.
On 5 May, at the time of writing, SUM was trading at $12.4, down 0.8%.
Chorus recorded a 13% decrease in total fixed line connections to 1,356,000 in Q3 FY21, compared to a 21% drop the previous year.
CNU's UFB uptake rose to 64% in the third quarter, up from 63% within the finalised footprint, thanks to the completion of 40K fiber deployments in Q3.
Chorus paid an interim cash dividend of 10.5cps on April 13. The Group expects EBIDTA in the range of $640 million to $660 million for FY21.
On 5 May, at the time of writing, CNU was trading at $6.7, down 0.06%.
Precinct Properties New Zealand Limited (NZX:PCT)
PCT recently announced that the remaining 50% stake in the ANZ Centre had been sold unconditionally after the terms of sale were met.
PCT charged a dividend of 3.25cps in the first half of 2021, up 3.2% from 3.15cps in the first half of 2020. For FY21, the Group has retained its dividend guidance of 6.5 cents per share.
On 5 May, at the time of writing, PCT was trading at $1.66, down 0.6%.
Argosy Property Limited (NZX:ARG)
On May 1, Argosy Property reached an agreement to sell Albany Lifestyle Centre for $87.5 million. It has sold its commercial property at 1478 Omahu Road in Hastings for $10.4 million unconditionally. It is expected that a settlement will be reached in September 2021.
The company's net profit increased by 14% in the first half of FY21, reaching NZ$94.3 million. It had positive results in two of its core business divisions, healthcare, and animal care. EBOS also announced a strong cash flow condition, which increased by 33% to NZ$ 98.7 million.
On 5 May, at the time of writing, ARG was trading at $1.49, down 1.97%.
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Property for Industry Limited (NZX:PFI)
Property for Industry recently settled the divestment of an industrial property at 127 Waterloo Road in Christchurch. It has also refinanced its liquidity facility with a 7-year term loan facility from the Commonwealth Bank of Australia, New Zealand Branch.
The Group paid a net dividend of 2.25cps on March 10, 2021.
On 5 May, at the time of writing, PFI was trading flat at $2.845.
EBOS Group’s net profit increased by 14% in the first half of FY21, reaching NZ$94.3 million. It had positive results in two of its core business divisions, healthcare and animal care. EBOS also announced a strong cash-flow condition, which increased by 33% to $ 98.7 million.
The Group made a cash distribution of $0.425 on March 18.
On 5 May, at the time of writing, EBO was trading at $30.94, up 0.06%.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)