The low price-to-earnings scan locates ASX 200 stocks with P/Es of less than 10 and identifies those with the largest share price upside.
There are currently 18 ASX 200 stocks with trailing P/Es of less than 10.
12 of the companies are from the Materials and Energy sector
The average 1-year performance is -7.4%
The average consensus price target is 12.1% above current levels
The below data is sorted from lowest to highest P/E.
Ticker | Company Name | Close Price | P/E | 1-Year | Target Price | Upside |
---|---|---|---|---|---|---|
Whitehaven Coal | $8.13 | 2.66 | -9.36% | $8.08 | -0.62% | |
New Hope Corp | $5.38 | 4.46 | -17.48% | $4.78 | -11.15% | |
Karoon Energy | $1.91 | 4.63 | -15.25% | $2.64 | 38.58% | |
Pilbara Minerals | $3.56 | 4.74 | -11.88% | $4.00 | 12.36% | |
Helia Group | $4.45 | 4.95 | 65.43% | $3.69 | -17.08% | |
Perseus Mining | $1.80 | 5.67 | -22.75% | $2.33 | 29.44% | |
Qantas Airways | $5.17 | 5.83 | -21.19% | $7.46 | 44.29% | |
Woodside Energy | $31.63 | 6.06 | -15.20% | $33.65 | 6.39% | |
Graincorp | $7.39 | 6.6 | -2.12% | $8.70 | 17.73% | |
Iluka Resources | $6.74 | 6.64 | -35.50% | $7.79 | 15.58% | |
West African Resources | $0.98 | 6.88 | -25.00% | $1.64 | 68.21% | |
Coronado Global | $1.73 | 8.26 | -16.67% | $2.07 | 20.00% | |
Spark New Zealand | $4.88 | 8.61 | 0.21% | $4.75 | -2.66% | |
National Storage | $2.25 | 8.64 | -2.17% | $2.37 | 5.33% | |
Beach Energy | $1.61 | 8.96 | -0.31% | $1.75 | 9.03% | |
Magellan Financial | $8.93 | 9.06 | -7.46% | $7.96 | -10.86% | |
Santos | $7.83 | 9.65 | 6.68% | $8.51 | 8.68% | |
Harvey Norman | $4.28 | 9.81 | -2.51% | $3.63 | -15.19% |
West African Resources boasts the largest consensus upside of 68.2%. The company operates the Sanbrado Gold Mine and Kiaka Gold Project in Burkina Faso, with a pretty solid track record of meeting and exceeding production guidances.
But as you might know, Africa-based miners tend to trade at a substantial discount to ex-African peers due factors such as geopolitical risks, military coups and sovereign risks.
Last week, West African Resources announced 2023 gold production of 226,823 ounces, within its guidance of 210-230,000 ounces.
Over the next 3 years, Macquarie expects the company to deliver the following production and cost figures:
2024 – 201,800 ounces of gold at AISC of US$1,026 an ounce
2025 – 339,600 ounces of gold at AISC of US$1,035 an ounce
2026 – 407,500 ounces of gold at AISC of US$1,175 an ounce
West African Resources has a pretty clear runway to producing more than 400,000 ounces of gold per annum at a relatively competitive AISC.
But this narrative is nothing new and the stock has been subject to large consensus upside for quite some time.
When reporting season hits, trailing P/Es for many bargain-priced stocks are likely to rise as earnings fall.
For example, Pilbara Minerals might trade on a P/E of 4.7 but lithium prices have slumped more than 80% compared to a year ago.
There are only five stocks that are forecast to grow earnings in FY24. These are:
West African Resources
Qantas
Karoon Energy
National Storage
Spark New Zealand
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