Small Caps Below Book Value And Paying Dividends

These 5 small capitalization companies appear to fit the profile of a value stocks as defined generally by Benjamin Graham in his classic work The Intelligent Investor. The stocks are not perfect fits, of course, but they probably come close enough to merit further examination.

Century Communities Inc (NYSE: CCS) is a residential construction company with corporate headquarters in Greenwood Village, Colorado. The company builds and sells single-family homes, condos and townhouses nationwide.

The stock is trading with the remarkably low price-earnings ratio of 3.78, indicating (possibly) how few investors are feeling optimistic about the homebuilding sector right now. Century is available for purchase at an 11% discount from its book value, also an indication of general avoidance by Wall Steet funds.

Earnings in 2022 increased by 10% and for the past 5 years the EPS increase comes in at 49.30%. Shareholder equity is greater than the amount of long-term debt. Average daily volume is relatively light for an NYSE-listed security at 310,000 shares. The short float of 6% is higher than most publicly traded stocks.

Century Communities pays a 1.53% dividend.

Eneti Inc (NYSE: NETI) is a Monaco-based marine shipping firm. According to the company website, its intention is to “transition away from the business of dry bulk commodity transportation and towards marine-based renewable energy including investing in the next generation of wind turbine installation vessels.”

With a price-earnings ratio of 8, the stock is trading just 54% of its book value. Shareholder equity greatly exceeds long-term debt and the current ratio is 4.50. The 2022 earnings per share were +101% and the past 5-year record is +15.50%. Eneti is lightly traded with an average daily of volume of 268,000 shares.

The company pays a dividend of .40%.

Flushing Financial Corporation (NASDAQNDAQ
: FFIC) is a New York regional bank with branch offices in Queens, Brooklyn, Manhattan and on Long Island. It’s trading at a 9% discount from book value with a price-earnings ratio of 7.95. EPS growth last year was 119% and for the past 5-year period 3.00%.

Price to free cash flow is 8.86 and this is another small cap where the amount of long-term debt is less than shareholder equity. The average daily volume is light at just 147,000 shares. Flushing Financial Corporation is paying a dividend of 4.44%.

OceanFirst Financial Corp (NASDAQ: OCFC) is a New Jersey bank that’s been in business since 1902 now operating from corporate headquarters in Tom’s River. With a price-earnings ratio of 10 and trading at 94% of book value, the stock may fall into the value stock profile.

2022 earnings per share increased by 74.50%. The EPS growth over the past 5-years grew by 12.70%. Shareholder equity is greater than long-term debt. With an average daily volume of just 208,ooo shares, the stock is in the “lightly traded” category.

OceanFirst pays its investors a dividend of 3.25%.

Stewart Information Services Company (NYSE: STC) is an insurance firm focused on the property and casualty sector. Based in Houston, Texas, also does business in Canada, Mexico and in European countries. The stock can be purchased at a 9% discount from book with a price-earnings ratio of 7.70.

Earnings per share over the last 12 months grew by 91.30% with an EPS growth record over the past 5 years of 45.10%. This is another of the small caps with greater shareholder equity than long-term debt. It’s lightly traded for an NYSE-listed security with an average daily volume of 248,000 shares.

Stewart Information Services is paying a 3.94% dividend.

Not investment advice. For educational purposes only.