Low P/E, low debt, dividend payment, earnings

A low price-to-earnings ratio is just the beginning of the search for stocks with potential value, as Peter Lynch of the Fidelity Magellan Fund has explained several times. In a growth stock mania like this one, it’s probably wise to take a broadly opposite stance and apply some value stock picking fundamentals and see what comes of it.

You don’t have to completely understand the complexity of his formulas to begin to get a feel for the stock value criteria. These stocks are worth taking a look at because they have 1) lower than market P/E ratios, 2) are showing record earnings, 3) are paying dividends, and 4) are keeping their debt levels low.

4 low P/E stocks with dividends

Himax technologies

According to the company’s website, Himax is a “fabless semiconductor solutions provider focused on display imaging technologies.” Founded in 2001 and headquartered in Taiwan, it belongs to the small-cap category with a market capitalization of $969 million.

The stock is trading at a price-to-earnings ratio of 12.61 while Shiller’s p/e ratio for the S&P 500 is 36. This year’s gains are 46%, and over the last five years they are up 42%. The debt-to-equity ratio is 0.54% and the long-term debt-to-equity ratio is 0.04%. Himax offers investors a dividend of 5.23%.

Jiayin

The China-based fintech platform says it focuses on connecting “underserved individual borrowers and financial institutions.” Operating from its headquarters in Shanghai, the company is definitely a small-cap company with a market capitalization of $211 million.

The stock is trading at a price-to-earnings ratio of 2.60 and 1.14 times book value. Profits over the last five years show an increase of 14.65%. The debt to equity ratio is 0.02. Jiayin Group paid a dividend of 11.08% on August 27, 2024. As the daily price above shows, Chinese stocks are participating in the rally following interest rate cuts.

Perdoceo Education

The education and training services company is headquartered in Shaumburg, Illinois. Colorado Technical University and American Intercontinental University System are two Perdoceo academic institutions that offer degree programs ranging from associate to doctoral levels.

With a price-to-earnings ratio of 10.32, the stock trades at 1.53 times book. Profits this year are down 3.67%. The last five years show EPS growth of 23.04%. The debt to equity ratio is 0.03. The market capitalization is $1.38 billion. Perdoceo will pay a dividend of 2.19%.

Tenaris

The company’s main business is crude oil pipes, and the company also provides other related services to the energy sector. The Luxembourg-based company operates in 23 countries around the world. The market capitalization is $18.44 billion. The average daily trading volume for NYSE stocks is 2.11 million shares.

This year’s profits are down 48% – EPS growth over the last five years is +34%. The price-to-earnings ratio is 6.92 and its book value is 1.09. The debt to equity ratio is 0.04. Tenaris will pay a 3.70% dividend.

No artificial intelligence was used in writing this post.

Statistics courtesy of FinViz.com. Charts courtesy of Stockcharts.com.

More analysis and commentary at johnnavin.substack.com.