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/Bargain Hunting: There are 27 ASX 200 stocks trading at single-digit PE ratios
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Data Insights
/Bargain Hunting: There are 27 ASX 200 stocks trading at single-digit PE ratios
Data Insights
Bargain Hunting: There are 27 ASX 200 stocks trading at single-digit PE ratios
By
Kerry Sun
Tue 24 Oct 23, 1:13pm (AEST)
Source: Shutterstock
Stocks in article
Key Points
- Three stocks have joined the list and two have left since last month
- Only five out of the 27 stocks on the low PEs list are forecast to grow earnings in FY24
Welcome back to the low price-to-earnings series – A monthly scan of 'cheap' stocks trading at PE ratios of less than 10.
ASX 200 stocks with single digit PEs
Ticker | Company | Price | 1-Year % | PE | Target Price | Upside |
|---|---|---|---|---|---|---|
Allkem | $10.68 | -27.1% | 9.7 | $15.72 | 47.2% | |
Brickworks | $25.93 | 24.2% | 9.8 | $27.31 | 5.3% | |
Beach Energy | $1.59 | 3.0% | 9.1 | $1.74 | 9.4% | |
Bluescope Steel | $17.90 | 16.3% | 8.4 | $21.77 | 21.6% | |
Credit Corp | $12.40 | -21.6% | 9.3 | $18.90 | 52.4% | |
Centuria Capital | $1.31 | -7.1% | 10.0 | na | na | |
Coronado Global | $1.69 | -11.6% | 4.4 | $2.06 | 22.3% | |
Elders | $6.17 | -47.1% | 8.0 | $7.31 | 18.5% | |
Fortescue Metals | $21.39 | 42.3% | 8.7 | $18.67 | -12.7% | |
Graincorp | $6.90 | -7.2% | 4.7 | $9.00 | 30.4% | |
Harvey Norman | $3.53 | -4.3% | 8.2 | $3.79 | 7.4% | |
Iluka Resources | $6.96 | -23.3% | 6.8 | $8.77 | 26.0% | |
Incitec Pivot | $2.93 | -10.2% | 7.5 | $3.24 | 10.6% | |
JB Hi-Fi | $44.48 | 18.0% | 9.3 | $47.15 | 6.0% | |
Karoon Energy | $2.69 | 30.0% | 6.0 | $2.91 | 8.2% | |
Magellan Financial | $6.44 | -27.6% | 6.4 | $8.16 | 26.7% | |
New Hope Corp | $6.17 | 1.3% | 5.4 | $4.90 | -20.6% | |
National Storage | $2.16 | -3.7% | 8.3 | $2.41 | 11.6% | |
Pilbara Minerals | $3.86 | -19.5% | 4.9 | $4.67 | 21.0% | |
Perseus Mining | $1.68 | -0.7% | 5.4 | $2.26 | 34.9% | |
Qantas | $4.77 | -18.3% | 5.1 | $7.60 | 59.3% | |
Spark New Zealand | $4.58 | 6.4% | 8.2 | $4.81 | 5.0% | |
Santos | $8.00 | 10.7% | 9.7 | $9.08 | 13.5% | |
Virgin Money | $2.97 | 40.5% | 5.2 | na | na | |
West African Resources | $0.75 | -24.2% | 5.4 | $1.65 | 120.0% | |
Woodside Energy | $36.36 | 12.4% | 6.7 | $37.38 | 2.8% | |
Whitehaven Coal | $7.54 | -19.9% | 2.5 | $7.96 | 5.6% |
Data as at Friday, 20 October close (Source: Market Index)
What's changed?
Since last month, three stocks have joined the list and two have left.
The new entrants have experienced a sharp derating in share price (which has subsequently dragged the 'price' lower and while we're waiting for 'earnings' to drop).
Allkem (ASX: AKE): Shares are down around 15% in the past month amid ongoing weakness in lithium prices
Credit Corp (ASX: CCP): Shares dropped by almost a third on October 18 after flagging a ~$45 million impairment that's expected to halve FY24 net profits from $90-100 million to $35-45 million.
Centuria Capital (ASX: CNI): Shares down almost 25% year-to-date amid cyclical headwinds facing property fund managers
Credit Corp is currently trading at a PE of 9.2 based on its FY23 net profit of $91.3 million and current market cap of $840 million. If we consider the company's FY24 net profit guidance, the PE ratio expands to around 21. So the stock (and many others on the above list) may not be as cheap as they seem.
Cheap stocks with growth
Only five out of the 27 stocks on the low PEs list are forecast to grow earnings in FY24, according to consensus expectations. The five include:
Beach Energy (ASX: BPT)
Karoon Energy (ASX: KAR)
Qantas (ASX: QAN)
Spark New Zealand (ASX: SPK)
Virgin Money (ASX: VUK)
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