20 Profitable Stocks With Low PEG Ratios : PEG ratio is also called as Price to Earnings to growth ratio.This ratio is used to find the value of a stock by taking in consideration of company’s earnings growth.PEG Ratio is calculated by dividing PE ratio of a stock by its percentage EPS growth rate.PEG ratio in India shows at what premium the stock price is trading with relative to its earnings growth performance. There is list of companies that have been more profitable than competitors. All of these stocks have PEG ratios below 1.0, as signal undervalued conditions. The companies are trading at attractive valuations depending on their past performance and current PEG ratios. T
The list is sorted by an average rank of net profit and gross profit margins.
The list is sorted by an average rank of net profit and gross profit margins.
1) Ensco plc - Oil & Gas Drilling & Exploration Industry. Market cap of $7.09B. PEG ratio at 0.87. In 5-year average gross margin is at 65.87% vs. industry averages at 19.14%. At 5-year average net profit margin at 42.61% vs. industry averages at 10.47%. So short float at 4.52% implies a short ratio of 3.75 days. The stock has gained 21.56% over the last year.
2) Shengdatech, Inc :Specialty Chemicals Industry. Here market cap of $323.03M. PEG ratio at 0.85. 5-year average gross margin at 37.21% vs. industry averages at 18.63%. 5-year averages net profit margin at 26.28% vs. industry average at 6.59%. Short float at 3.14%, which implies a short ratio of 5.36 days. The stock has lost -3.09% over the last year.
Oil & Gas Drilling & Exploration Industry. Market cap of $8.7B. PEG ratio at 0.69. 5-year average gross margin at 62.94% vs. industry average at 19.14%. 5-year average net profit margin at 40.36% vs. industry average at 10.47%. Short float at 1.97%, which implies a short ratio of 1.24 days. The stock has lost -13.28% over the last year.
4) Netease.com Inc. : Internet Software & Services Industry. Market cap of $4.99B. PEG ratio at 0.89. 5-year average gross margin at 79.86% vs. industry average at 43.96%. 5-year average net profit margin at 52.99% vs. industry average at 16.79%. Short float at 3.12%, which implies a short ratio of 2.7 days. The stock has gained 4.38% over the last year.
5) Perfect World Co. Ltd. : Application Software Industry. Market cap of $1.2B. PEG ratio at 0.53. 5-year average gross margin at 85.84% vs. industry average at 43.96%. 5-year average net profit margin at 45.51% vs. industry average at 16.79%. Short float at 4.88%, which implies a short ratio of 2.85 days. The stock has lost -44.68% over the last year.
6) Cresud Inc : Farm Products Industry. Market cap of $939.07M. PEG ratio at 0.95. 5-year average gross margin at 40.39% vs. industry average at 25.4%. 5-year average net profit margin at 17.92% vs. industry average at 7.37%. Short float at 0.69%, which implies a short ratio of 1.42 days. The stock has gained 35.46% over the last year.
7) Sasol Ltd : Major Integrated Oil & Gas Industry. Market cap of $31.54B. PEG ratio at 0.97. 5-year average gross margin at 38.5% vs. industry average at 18.63%. 5-year average net profit margin at 14.33% vs. industry average at 6.59%. Short float at 0.1%, which implies a short ratio of 2.57 days. The stock has gained 25.41% over the last year.
8) Southern Copper Corp : Copper Industry. Market cap of $39.57B. PEG ratio at 0.81. 5-year average gross margin at 59.61% vs. industry average at 41.6%. 5-year average net profit margin at 33.18% vs. industry average at 15.39%. Short float at 4.08%, which implies a short ratio of 3.25 days. The stock has gained 47.26% over the last year.
Low peg Stocks ratios
9) Intevac Inc : Diversified Electronics Industry. Market cap of $332.11M. PEG ratio at 0.83. 5-year average gross margin at 39.52% vs. industry average at 13.93%. 5-year average net profit margin at 8.08% vs. industry average at 4.15%. Short float at 6.56%, which implies a short ratio of 10.45 days. The stock has gained 19.26% over the last year.
10) Methanex Corp : Specialty Chemicals Industry. Market cap of $2.76B. PEG ratio at 0.65. 5-year average gross margin at 25.24% vs. industry average at 18.63%. 5-year average net profit margin at 12.49% vs. industry average at 6.59%. Short float at 1.1%, which implies a short ratio of 3.09 days. The stock has gained 56.11% over the last year.
11) Concho Resources, Inc : Oil & Gas Drilling & Exploration Industry. Market cap of $8.68B. PEG ratio at 0.70. 5-year average gross margin at 81.17% vs. at 43.11%. 5-year average net profit margin at 19.43% vs. at 11.05%. Short float at 5.07%, which implies a short ratio of 5.44 days. The stock has gained 110.52% over the last year.
12) BHP Billiton plc Industrial Metals & Minerals Industry. Market cap of $215.51B. PEG ratio at 0.99. 5-year average gross margin at 75.9% vs. at 41.6%. 5-year average net profit margin at 23.83% vs. at 15.39%. Short float at 0.07%, which implies a short ratio of 1.2 days. The stock has gained 28.3% over the last year.
13) Olin Corp : Chemicals Industry. Market cap of $1.57B. PEG ratio at 0.77. 5-year average gross margin at 22.2% vs. at 18.63%. 5-year average net profit margin at 9.68% vs. at 6.59%. Short float at 7.7%, which implies a short ratio of 7.8 days. The stock has gained 21.03% over the last year.
14) Agilent Technologies Inc : Scientific & Technical Instruments Industry. Market cap of $13.B. PEG ratio at 0.66. 5-year average gross margin at 53.83% vs. at 31.67%. 5-year average net profit margin at 9.43% vs. at 6.84%. Short float at 1.26%, which implies a short ratio of 1.38 days. The stock has gained 25.77% over the last year.
15) Ares Capital Corporation : Diversified Investments Industry. Market cap of $3.22B. PEG ratio at 0.52. 5-year average gross margin at 73.78% vs. at 2.52%. 5-year average net profit margin at 31.75% vs. at 27.25%. Short float at 1.78%, which implies a short ratio of 2.4 days. The stock has gained 46.67% over the last year.
Stocks with low peg ratios
16) Southwestern Energy Co:Southwestern Energy Co:- Independent Oil & Gas Industry. Market cap of $12.8B. PEG ratio at 0.93. 5-year average gross margin at 62.79% vs. at 36.48%. 5-year average net profit margin at 14.92% vs. at 13.1%. Short float at 3.14%, which implies a short ratio of 2.33 days. The stock has lost -14% over the last year.
17) Millicom International Cellular SA: Telecom Services Industry. Market cap of $9.66B. PEG ratio at 0.44. 5-year average gross margin at 63.57% vs. at 54.51%. 5-year average net profit margin at 14.78% vs. at 13.23%. Short float at 1.81%, which implies a short ratio of 2.45 days. The stock has gained 18.82% over the last year.
18) Honda Motor Co., Ltd: Auto Manufacturers Industry. Market cap of $66.99B. PEG ratio at 0.37. 5-year average gross margin at 27.79% vs. at 21.62%. 5-year average net profit margin at 3.43% vs. at 3.26%. Short float at 0.02%, which implies a short ratio of 0.82 days. The stock has gained 10.07% over the last year.
19) TriQuint Semiconductor, Inc: Semiconductor Industry. Market cap of $2.08B. PEG ratio at 0.73. 5-year average gross margin at 31.42% vs. at 23.1%. 5-year average net profit margin at 1.77% vs. at -0.78%. Short float at 7.06%, which implies a short ratio of 2.57 days. The stock has gained 111.71% over the last year.
20) Southwest Airlines Co: Regional Airlines Industry. Market cap of $9.67B. PEG ratio at 0.77. 5-year average gross margin at 23.89% vs. at 20.35%. 5-year average net profit margin is 3.98% vs. at -0.44%. Short float at 2.66%, which implies a short ratio of 3.38 days. The stock has gained 28.47% over the last year.
Conclusion
PEG ratio is powerful tool to find undervalued companies growth prospects. Many financial experts consider PEG ratio as more helpful than PE Ratio and this topic is still controversial. For smart investor it doesn’t matter which one is better. The important thing is how to use them to make an intelligent decision.
