Stocks with low price-earnings ratios (low p/e’s) attract the interest of value investors. There’s more to it, of course, but it’s usually the first metric examined. A low p/e stock trading below its book value is even more interesting. Shares are priced at less than the figure arrived at when subtracting the company’s total liabilities from its total assets.
Is this equity making money? If this year’s earnings are better than last year’s earnings, that’s usually a good sign. If earnings have increased over the past five years, that’s even better. Are dividends being paid? If the answer is yes to this question and to all of the above, some observant value investors may have already purchased a few shares.
5 Low P/E Stocks, Below Book, Dividend-Paying
Angel Oak Mortgage daily price chart, 8 30 25.
stockcharts.com
Possibly benefitting this week from Fed Chair Powell’s “hint” of lower rates, this real estate investment trust hit a new high. Also good: this year’s earnings are up 279% and up over the past five years by 43.05%. The price-earnings ratio is 6.38. The stock trades at a 5% discount to its book value. Angel Oak pays a 12.98% dividend. If interest rates are not cut, that is likely to affect the entire financial services sector.
Costamare daily price chart, 8 30 25.
stockcharts.com
This marine shipping firm is based in Monaco. The price-earnings ratio is 4.84 and it’s trading at 70% of its book value. Earnings this year are up 37% and up over the past five years by 33%. The stock is a component of the Russell 2000 smal caps ETF. Market cap is $1.37 billion. Costamare offers investors a 4.02% dividend. It looks as if the 50-day moving average may be on its way to crossing above the 200-day moving average.
Lincoln National daily price chart, 8 30 25.
stockcharts.com
This life insurance company is based in Radnor, Pennsylvania and has a market cap of $8.14 billion. The stock is available for purchase at a 5% discount to its book value. The price-earnings ratio is 7.49. This year’s earnings are up 7.72% and the EPS gain over the past five years is 33.25%. Lincoln pays a dividend of 4.20%.
Prosperity Bancshares daily price chart, 8 30 25.
stockcharts.com
Prosperity Bancshares has a market cap of $6.57 billion. This regional bank is headquartered in El Campo, Texas. The stock is going for 87% of its book value with a price-earnings ratio of 12.60. This year’s earnings are up 12.80% and up over the past five years 2.21%. The company pays a 3.37% dividend.
Turkcell Illetisim Hizmetleri daily price chart, 8 30 25.
stockcharts.com
The Istanbul, Turkey-based telecommunications company has a market cap of $5.13 billion. The price-earnings ratio is 11.63 and the stock trades at a 6% discount from its book value. This year’s earnings are up 36% and up over the past five years by .57%. Turkcell pays a dividend of 4.18%.
The best book on value investing is The Intelligent Investor by Benjamin Graham where an investor can read up on the basic principles of the practice.
Stats courtesy of FinViz.com. Charts courtesy of Stockcharts.com.
No artificial intelligence was used in the writing of this post.
More analysis and commentary at johnnavin.substack.com.