When you subtract all of a company’s liabilities from all of its assets and the number comes up lower than the market price per share, that’s “below book value” in the stock market world. These types of situations are hard to find with overall valuations up at higher-than-ever levels, but they do exist.
These names are not widely broadcast or front-paged since great viewership and readership only tends to show up for hot stocks with hot concepts (AI, for example). Another way of saying it: these companies generally are boring, unexciting and keep to themselves for the most part.
4 Below Book Value Stocks With Earnings And Dividends
Ally Financial
This credit services firm bottomed in March 2023 at $21 and made it up to near $45 by mid-2024 but has been unable to maintain that altitude. Trading right at its 50-week moving average, the stock has two closes above its 200-week moving average. Financial sector stocks like this are less liked, generally, when the Fed fails to cut interest rates.
Ally Financial trades at a one percent discount from book value with a price-earnings ratio of 14.42. This year’s earnings are up 55% and down over the past five years by 16%. The debt-to-equity ratio is 1.38. The company pays a 3.20% dividend.
First Busey
The regional bank stock is off of its 2024 highs a likely result of the Fed’s decisions to keep interest rates where they are and not lower them. The price is above both the 200-week moving average but just barely – and below the 50-week.
The company’s shares can be purchased today at 92% of their book value. The price-earnings ratio is 11.31. The debt-to-equity ratio is .31. Earnings are up 12% this year and up just 1.13% over the past five years. First Busey, a component of the Russell 2000, offers investors a dividend of 4.51%.
General Motors
That’s a nice move up from the November 2023 low of $26 to the November 2024 high of $61. Profit takes have moved in and the stock now goes for $47.54, just below an up trending 50-week moving average and above the 200-week moving average.
General Motors trades at a 25% discount from book value with a price-earnings ratio of 7.74. The debt-to-equity ratio is 2.05. Earnings this year are up by 7% and up over the past five years by 6.84%. The short float of 4.45% is a bit on the high side and indicates the interest of those who short. GM pays a 1.06% dividend.
Molson Coors Beverage
Each of the three highs, from 2023 to 2024 to 2025, is lower than the previous one. The 50-week moving average turned down in April/May 2024. The 200-week moving average continues to move upward.
The Golden, Colorado-based beer company now trades at a six percent discount from its book value. The price-earnings ratio is 11.30. The debt-to-equity ratio is .49. This year’s earnings are up 6.31% and up over the past five years 36.84%. Molson Coors pays a 3.07% dividend.
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.
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