While many Nasdaq tech stocks are known for their high valuations, several are trading below their book value, presenting potential investment opportunities for discerning investors. Below are five notable stocks that have market prices lower than their book value, with all five demonstrating a solid five-year earnings record. Notably, four of these companies also pay dividends, making them attractive for income-focused investors.
The first company on the list is ChipMOS Technologies, a semiconductor services firm based in Taiwan. ChipMOS specializes in back-end testing services for various semiconductor products, including LCD drivers and mixed-signal semiconductors. The company has a modest market capitalization of $712 million and sees relatively light trading volume, averaging around 19,000 shares daily. Despite a slight increase in earnings of 1.82% this year, ChipMOS has shown a healthy earnings per share (EPS) growth rate of 10.68% over the past five years. Currently, the stock trades at a 9% discount to its book value and carries a price-earnings ratio (P/E) of 13.72. For dividend seekers, ChipMOS also offers an appealing dividend yield of 5.55%.
Next is Joyy ADR, a social media and internet content company that manages platforms such as Bingo Live and Likee. Operating out of Singapore, Joyy has a sizeable workforce of approximately 7,000 employees spread across 30 cities. Over the past five years, the company has experienced a modest earnings growth of 4.67%, although its performance has dipped by 7.68% this year. Joyy’s stock is priced at only 36% of its book value, with a P/E ratio of 8.84 and a minimal debt-to-equity ratio of just 0.02. Although this company does not pay a dividend, its low valuation may attract investors looking for growth potential at a bargain.
Kelly Services, a staffing and employment services company based in Troy, Michigan, also makes the list. The company has a market capitalization of $506 million and has operations in various international locations, including Singapore and Switzerland. Kelly Services boasts a five-year earnings growth of 11%, although it has encountered a decline of 11% this year. The stock trades at only 39% of its book value, with a P/E ratio of 12. The average trading volume is a reasonable 217,000 shares, and this month, the company declared a dividend yield of 2.11%, appealing to yield-seeking investors.
Star Bulk Carriers is a global shipping company operating out of Singapore, with a fleet of 176 vessels that handles approximately 70 million metric tons of cargo annually. With a market cap of $1.22 billion, Star Bulk Carriers has recorded a significant earnings increase of 47% this year, as well as an 18% rise over the past five years. The stock currently trades at 89% of its book value, boasting a remarkably low P/E ratio of 6.39. Among the most attractive features of Star Bulk Carriers is its substantial dividend yield of 13%, with upcoming ex-dividend payments set for December 5, 2024, positioning it as an appealing choice for income-oriented investors.
The last company featured is Taitron Components, a national distributor of electronic components based in Valencia, California. With additional operations in Asia, Taitron’s market capitalization is relatively small at $15.81 million. Despite this, the company has achieved a respectable EPS growth of 4.85% over the past five years. Taitron’s shares are currently trading at a 9% discount to its book value with a P/E ratio of 11.77. This company also has an attractive dividend yield of 7.62%, with dividends expected to be declared on November 15, 2024. Its zero debt-to-equity ratio adds another layer of fiscal security, making it a noteworthy option for conservative investors as well.
In conclusion, while high-growth stocks typically dominate the conversation in the Nasdaq space, the presence of companies trading below book value offers a refreshing alternative for those seeking value and dividend income. ChipMOS Technologies, Joyy ADR, Kelly Services, Star Bulk Carriers, and Taitron Components each possess unique attributes making them worthy of consideration. Investors should analyze these companies further, evaluate their financial health, and consider their potential for future growth and profitability in the tech sector.
