Five for Friday: Buying Cash at a Discount and Getting Double Digit Growth

By Michael Lebowitz | September 16, 2022

This week’s scan searches for stocks with market caps that are less than the amount of cash on their books. As if buying dollars for pennies isn’t enticing enough, we added a few other factors to our scan to increase the odds the companies can maintain or even increase their cash balances.

The companies below have almost no debt and good past and forecast earnings growth. All four companies have had double-digit earnings growth rates for the past five years and are expected to grow by at least 10% over the next five years. As small-cap companies, their high cash balance with low debt offers flexibility to jump on high growth opportunities at the right time. 

Screening Criteria

  • Price to Cash < 1.0
  • Market Cap >$100 million
  • EPS Growth Last 5yrs >10%
  • EPS Growth Next 5yrs >10%
  • Debt to Equity <.1

Our four companies met our screening requirements, as shown below.

Simplevisor Screen, Five for Friday: Buying Cash at a Discount and Getting Double Digit Growth

Company Summaries (All Descriptions Courtesy SimpleVisor)

Global Cord Blood Corporation (CO)

Simplevisor Screen, Five for Friday: Buying Cash at a Discount and Getting Double Digit Growth

Timberland Bancorp Inc (TSBK)

*Description courtesy Zacks

Simplevisor Screen, Five for Friday: Buying Cash at a Discount and Getting Double Digit Growth
Simplevisor Screen, Five for Friday: Buying Cash at a Discount and Getting Double Digit Growth

DouYu International Holdings Limited (DOYU)

Simplevisor Screen, Five for Friday: Buying Cash at a Discount and Getting Double Digit Growth

Banco BBVA Argentina S.A. (BBAR)

Simplevisor Screen, Five for Friday: Buying Cash at a Discount and Getting Double Digit Growth

Disclosure

This report is not a recommendation to buy or sell the named securities. We intend to elicit ideas about stocks meeting specific criteria and investment themes. Please read our disclosures carefully and do your own research before investing.


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Michael Lebowitz, CFA is an Investment Analyst and Portfolio Manager for RIA Advisors. specializing in macroeconomic research, valuations, asset allocation, and risk management. RIA Contributing Editor and Research Director. CFA is an Investment Analyst and Portfolio Manager; Co-founder of 720 Global Research. 

Follow Michael on Twitter or go to 720global.com for more research and analysis.
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