Hello everyone. I’m @olivertomolife and I love investing and shareholder special offers!
There are many indicators for investing, but companies with a low P/B ratio are very attractive, right?
We are always looking for stocks that are undervalued relative to their stock price.
In this article, I’m going to share with you some of those stocks whose PBR is less than 1X that I recommend!
PBR is a great indicator for long-term investment, so if you are planning to invest for a long time, this is a must-see!
The author has three years of investment experience and has experience in the securities industry.
By reading this article, you’ll learn about stocks with undervalued PBR’s that we recommend!
Three stocks I recommend with a PBR of less than 1x!
I have compiled a list of stocks with a PBR of 1X or less that I have independently researched.
1 Yodogawa Steel Works
5451 Yodogawa Steelworks is a steel manufacturing company with a history of more than 80 years, and is expanding its business both domestically and internationally.
It is a fairly undervalued stock with a PBR of 0.41x.
In addition, the capital adequacy ratio is over 70%, which is low risk of bankruptcy if it is over 50%.
How about investing in this company as a good financial company?
For more information about Yodogawa Steelworks, please refer to the following article.
2 ORIX Corporation
ORIX, which is engaged in diversified financial business both domestically and internationally, is famous as a high-dividend stock with a dividend yield of more than 3%.
It’s also undervalued, with a P/B ratio of just 0.8!
And while leasing companies tend to have low capital adequacy ratios, the company boasts one of the highest capital adequacy ratios at 20%.
For more information about ORIX, please refer to the following article.
3 Suzumo Kikou
This company has been selling rice-related machinery since it developed a sushi robot in 1981.
Since the company handles everything from development to sales in-house, it has the ability to handle a wide range of situations.
The company’s P/B ratio is 0.93x, which is undervalued.
The company also has a capital adequacy ratio of over 80%, so the risk of bankruptcy is low.
For more information about Suzumo Kikou, please refer to the following article.
What is PBR?
PBR is the price-to-book ratio, and it shows the relationship between the stock price and the net assets of a company.
It indicates how much assets a company has in relation to its stock price, and 1x is considered to be a good rule of thumb.
The PBR of TOPIX, which uses the stock prices of companies on the First Section of the Tokyo Stock Exchange as its index, is 1.3 times as of August 2021.
As a rule of thumb, a stock is undervalued if the PBR is below 1x.
What is the difference between PBR and PER?
PBR can be calculated by dividing a company’s total assets by its shareholders’ assets after repayment of liabilities and external debts.
It can also be used to determine net assets per share by dividing net assets by shares outstanding.
PER, on the other hand, can be used to determine the profit generated during the annual period of activity.
While net worth is more stable because of its long-term results, net income can change with annual performance.
For this reason, PER is more volatile.
- PBR is a recommended indicator for long-term investment
- PER fluctuates widely.
- Orix is the most recommended of the three stocks.
I’ve introduced you to three undervalued, highly recommended stocks!
Investing is a personal responsibility. Investing is a self-responsibility. Make your own final decision by referring to various opinions.
I will continue to provide useful information for investment, so please stay tuned.
Thank you for reading to the end!