Looking for an ASX All Ords stock trading at a sharp discount to its peers?
Then you may wish to run your slide rule over workforce solutions company PeopleIn Ltd (ASX: PPE).
The ASX All Ords stock is trading about flat in 2023 and is down 12% over the past 12 months. That compares to a 3% loss posted by the All Ordinaries Index (ASX: XAO) over that same time.
PeopleIn is also known for its reliable, twice-yearly dividends. Its shares trade on a trailing dividend yield of 4.4%, fully franked.
At the current share price, PeopleIn trades at a price-to-earnings (PE) ratio of about 12 times.
The ASX All Ords stock trading at a 35% discount
Josh Clark, portfolio manager of QVG Capitalâs long-short fund, named PeopleIn as the most undervalued share on the ASX.
âPeopleIn is a diversified labour services business that has delivered double-digit organic growth supplemented by sensible acquisitions,â Clark said (courtesy of the Australian Financial Review).
âIn fact,â he said of the ASX All Ords stock, âtheyâre at a 35% discount to the average industrial despite having grown EPS (earnings per share) at 22% over an extended period.â
Addressing potential concerns about why PeopleIn is trading at a steep discount, Clark said:
Stocks are always cheap for a reason but in this case, itâs non-operational. Low liquidity and their gearing capacity appear to be keeping a lid on the valuation. However, if they continue to grow as we expect, these things will be resolved in time.
PeopleIn released its half-year results on 17 February.
The ASX All Ords stock reported revenue of $597 million for the six months, up 89% year on year. Normalised profits came in at $21 million, up 50% from the prior corresponding period.
How has the PeopleIn share price performed longer-term?
As long-term investors, it pays to take a step back to see how a company has fared over more than just the past year.
In the case of this ASX All Ords stock, if youâd bought shares five years ago, youâd be sitting on a gain of 105%. And that doesnât include the dividend payouts.
The post Fundie reveals the ASX All Ords stock trading at a 35% discount appeared first on The Motley Fool Australia.
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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Peoplein. The Motley Fool Australia has recommended Peoplein. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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