29 Top Small Cap Value Stocks with Low Multiples

Introduction

Low multiples such as earnings multiples or book multiples generally represent good values. While this may not be always true, it is true enough that they make for a great screen to shortlist stocks for further review. In this screen we go after the traditional trifecta of low price/book, low price/earnings and low price/sales. At the same time, we are look for some history of sales and earnings growth.

This gives us a good shortlist of stocks from which we can further narrow down our focus by quick review of other fundamental data.

Screen Details

This screen looks for small cap stocks between $30 million and $2 Billion in market capitalization with low multiples:

P/E ratio between 2 and 10
P/B ratio < 1.5
P/S ratio < 2
5 year EPS growth rate > 2%
5 year Sales growth rate > 2%

The stocks are limited to those listed on US exchanges.

The screen was run with the Stock Rover screener, and we found 29 stocks listed on the American exchanges that fit this criteria. You can download the filter criteria here so you can import it in your Stock Rover account and run it yourself as you need. Don't have a Stock Rover account? Sign up here for a 2 week free trial. You can read my review of Stock Rover here

The Screen Results

Stock	Company	P/E Ratio	P/B Ratio	P/S ratio	EPS 5 yr growth	Sales 5 yr growth
AAWW	Atlas Air Worldwide Hldgs	5.9	0.3	0.3	7.8%	9.1%
ACCO	ACCO Brands	9.8	1.2	0.5	3.0%	2.4%
BBAR	BBVA Argentina	4.9	0.7	0.6	48.1%	48.1%
BBGI	Beasley Broadcast Group	7.6	0.3	0.3	26.4%	36.8%
BGS	B&G Foods	6.0	1.2	0.6	24.7%	14.9%
CAI	CAI International	8.1	0.7	0.9	3.5%	14.5%
CFFI	C&F International	10.0	1.1	1.7	7.5%	2.4%
CMCM	Cheetah Mobile	3.2	0.6	0.7	65.6%	27.1%
CPE	Callon Petroleum	4.0	0.4	1.5	25.8%	35.4%
CSIQ	Canadian Solar	4.1	0.7	0.3	2.9%	4.8%
ECPG	Encore Capital Group	6.6	1.2	0.8	8.4%	6.2%
FLY	FLY Leasing	3.4	0.8	1.4	49.1%	4.1%
FONR	Fonar	9.1	1.1	1.5	6.9%	4.6%
GTS	Triple-S Management	6.1	0.5	0.1	17.0%	6.8%
HA	Hawaiian Holdings	7.1	1.3	0.5	29.1%	4.4%
HOFT	Hooker Furniture	9.3	1.1	0.4	21.6%	22.7%
KRA	Kraton	8.3	0.9	0.4	30.5%	8.2%
MIK	Michaels Companies	4.4	-	0.3	50.0%	2.1%
MOV	Movado Group	8.6	1.1	0.8	8.0%	4.0%
MRLN	Marlin Business Services	9.8	1.2	1.8	7.8%%	9.9%
MTDR	Matador Resources	8.2	0.9	1.8	8.5%	21.9%
NAII	Natural Alternatives Int	9.7	0.8	0.5	21.3%	12.9%
REI	Ring Energy	5.5	0.3	0.8	3.5%	38.8%
RM	Regional Management	9.9	1.2	1.3	17.0%	10.4%
SORL	SORL Auto Parts	5.2	0.3	0.1	2.8%	17.2%
SRCI	SRC Energy	4.5	0.6	1.4	18.9%	45.3%
TGS	Transportadora de Gas	4.1	1.5	1.7	157.1%	58.3%
UBOH	United Bancshares	7.7	0.8	1.7	16.5%	14.0%
WLFC	Willis Lease Finance	4.8	1.0	0.8	49.0%	20.1%

- The article continues after this -

Access all our stock screens here

Notes and Observations

I am not favoring the financial and energy sectors yet. Of the remaining, I find the following stocks interesting:

BGS: B&G Foods came out with a reduced guidance and the stock has slid hitting 52 week lows recently. The company stock now yields about 12% with the dividend payout ratio of 70%. From all other measures, the stock appears to be severely undervalued. Will proceed with detailed review.
HOFT: Is already in the review list from other screens
MOV: Great valuation and dividend yield of 3.3%. The company is in luxury watches segment, which is a consumer cyclical sector. However, a recession may not affect it as much due to its luxury focus. Will review further.