Data Insights

Bargain Hunting: There are 27 ASX 200 stocks trading at single-digit PE ratios

Tue 24 Oct 23, 1:13pm (AEDT)
Financial stock exchange market display screen board on the street marketsasx
Source: Shutterstock

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

AKE

Allkem

$10.68

-27.1%

9.7

$15.72

47.2%

BKW

Brickworks

$25.93

24.2%

9.8

$27.31

5.3%

BPT

Beach Energy

$1.59

3.0%

9.1

$1.74

9.4%

BSL

Bluescope Steel

$17.90

16.3%

8.4

$21.77

21.6%

CCP

Credit Corp

$12.40

-21.6%

9.3

$18.90

52.4%

CNI

Centuria Capital

$1.31

-7.1%

10.0

na

na

CRN

Coronado Global

$1.69

-11.6%

4.4

$2.06

22.3%

ELD

Elders

$6.17

-47.1%

8.0

$7.31

18.5%

FMG

Fortescue Metals

$21.39

42.3%

8.7

$18.67

-12.7%

GNC

Graincorp

$6.90

-7.2%

4.7

$9.00

30.4%

HVN

Harvey Norman

$3.53

-4.3%

8.2

$3.79

7.4%

ILU

Iluka Resources

$6.96

-23.3%

6.8

$8.77

26.0%

IPL

Incitec Pivot

$2.93

-10.2%

7.5

$3.24

10.6%

JBH

JB Hi-Fi

$44.48

18.0%

9.3

$47.15

6.0%

KAR

Karoon Energy

$2.69

30.0%

6.0

$2.91

8.2%

MFG

Magellan Financial

$6.44

-27.6%

6.4

$8.16

26.7%

NHC

New Hope Corp

$6.17

1.3%

5.4

$4.90

-20.6%

NSR

National Storage

$2.16

-3.7%

8.3

$2.41

11.6%

PLS

Pilbara Minerals

$3.86

-19.5%

4.9

$4.67

21.0%

PRU

Perseus Mining

$1.68

-0.7%

5.4

$2.26

34.9%

QAN

Qantas

$4.77

-18.3%

5.1

$7.60

59.3%

SPK

Spark New Zealand

$4.58

6.4%

8.2

$4.81

5.0%

STO

Santos

$8.00

10.7%

9.7

$9.08

13.5%

VUK

Virgin Money

$2.97

40.5%

5.2

na

na

WAF

West African Resources

$0.75

-24.2%

5.4

$1.65

120.0%

WDS

Woodside Energy

$36.36

12.4%

6.7

$37.38

2.8%

WHC

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:

 

Written By

Kerry Sun

Content Strategist

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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