Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 6 stocks made the list for top value stocks in the Electrical Components & Equipment industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Electrical Components & Equipment Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

Click the button below to learn more about A+ Investor and subscribe today.

6 Undervalued Electrical Components & Equipment Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 6 undervalued stocks in the Electrical Components & Equipment industry for Monday, August 12, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Electrical Components & Equipment industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Allient Inc’s Value Grade

Value Grade:

Allient Inc. is a global company, which designs, manufactures, and sells precision and specialty-controlled motion components and systems used in a range of industries. The Company sells component and integrated controlled motion solutions to end customers and original equipment manufacturer (OEMs) through its own direct sales force and authorized manufacturers’ representatives and distributors. The Company’s products and solutions include nano precision positioning systems, servo control systems, motion controllers, digital servo amplifiers and drives, brushless servo, torque, and coreless motors, brush motors, integrated motor-drives, gear motors, gearing, incremental and absolute optical encoders, active (electronic) and passive (magnetic) filters for power and harmonic issues, industrial safety rated input/output modules, universal industrial communications gateways, light-weighting technologies, and other controlled motion-related products.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Allient Inc has a Value Score of 66, which is considered to be undervalued.

When you look at Allient Inc’s price-to-sales ratio at 0.59 compared to the industry median at 1.63, this company has a lower price relative to revenue compared to its peers. This could make Allient Inc’s stock more attractive for value investors.

Allient Inc’s price-earnings ratio is 13.64 compared to the industry median at 20.03. This means it has a lower share price relative to earnings compared to its peers. This could make Allient Inc more attractive for value investors.

Now, let’s assess Allient Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 8.6, when compared to the industry median of 12.2, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Allient Inc’s shareholder yield is lower than its industry median ratio of (0.56%). Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Allient Inc’s price-to-book ratio is lower than its industry median ratio of 2.01. This could make Allient Inc more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Allient Inc’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Allient Inc’s price-to-free-cash-flow ratio is lower than its industry median ratio of 19.73. This could make Allient Inc more attractive because the lower P/FCF ratio indicates that Allient Inc is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

Altex Industries, Inc.’s Value Grade

Value Grade:

Altex Industries, Inc. is a holding company. The Company, through its operating subsidiary, Altex Oil Corporation (AOC), owns interests in onshore oil and gas properties, has bought and sold producing oil and gas properties. The Company has also participated in the drilling of exploratory and development wells, and in recompletions of existing wells. All of AOC's interests are in properties operated by others. The operators of producing properties in which AOC has an interest sell produced oil and gas to refiners, pipeline operators, and processing plants. The Company's estimated reserves are 1,300 barrels of developed oil reserves associated with its 4.4% override in the Glo Field in Campbell County, Wyoming. The Company owns small mineral interests in Utah. All the Company's production is located in Utah and Wyoming.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Altex Industries, Inc. has a Value Score of 78, which is considered to be undervalued.

Altex Industries, Inc.’s price-earnings ratio is 6.5 compared to the industry median at 20.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Altex Industries, Inc. more attractive for value investors.

Altex Industries, Inc.’s price-to-book ratio is higher than its peers. This could make Altex Industries, Inc. less attractive for value investors when compared to the industry median at 2.01.

You can read more about Altex Industries, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

CBAK Energy Technology Inc’s Value Grade

Value Grade:

CBAK Energy Technology Inc is a China-based investment holding company. The Company primarily operates through two segments. The CBAK's segment mainly includes the manufacture, commercialization and distribution of a wide variety of standard and customized lithium ion rechargeable batteries for use in a wide array of applications. The Hitrans' segment mainly includes the development and manufacturing of NCM precursor and cathode materials. The Company's products are sold to packing plants operated by third parties primarily for use in mobile phones and other electronic devices. Its products are used in various applications, including electric vehicles (EV), such as electric cars, electric buses, hybrid electric cars and buses and light electric vehicles (LEV), such as electric bicycles, electric motors and sight-seeing cars, and electric tools, energy storage, uninterruptible power supply (UPS), and other high power applications.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

CBAK Energy Technology Inc has a Value Score of 91, which is considered to be undervalued.

CBAK Energy Technology Inc’s price-earnings ratio is 10.4 compared to the industry median at 20.0. This means that it has a lower price relative to its earnings compared to its peers. This makes CBAK Energy Technology Inc more attractive for value investors.

CBAK Energy Technology Inc’s price-to-book ratio is higher than its peers. This could make CBAK Energy Technology Inc less attractive for value investors when compared to the industry median at 2.01.

You can read more about CBAK Energy Technology Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

inTest Corp’s Value Grade

Value Grade:

inTEST Corporation is a supplier of test and process technology solutions for use in manufacturing and testing. The Company’s segments include Electronic Test, Environmental Technologies and Process Technologies. Electronic Test consists of inTEST EMS, which has operations in New Jersey and California, and Acculogic, which has operations in Canada, California and Germany. Environmental Technologies consists of inTEST Thermal Solutions (iTS), which manufactures and sells products under the Temptronic, Sigma, Thermonics and North Sciences brand names and has operations in Massachusetts, Germany and Singapore. Process Technologies consists of Ambrell, which has operations in New York, the Netherlands and the United Kingdom, and Videology, which has operations in Massachusetts and the Netherlands. Its key markets include automotive, defense/aerospace, industrial, life sciences, and security, as well as both the front-end and back-end of the semiconductor manufacturing industry.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

inTest Corp has a Value Score of 67, which is considered to be undervalued.

inTest Corp’s price-earnings ratio is 11.2 compared to the industry median at 20.0. This means that it has a lower price relative to its earnings compared to its peers. This makes inTest Corp more attractive for value investors.

inTest Corp’s price-to-book ratio is higher than its peers. This could make inTest Corp less attractive for value investors when compared to the industry median at 2.01.

You can read more about inTest Corp’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Microvast Holdings Inc’s Value Grade

Value Grade:

Microvast Holdings, Inc. is an advanced battery technology company. It designs, develops and manufactures battery components and systems for electric commercial vehicles and utility-scale energy storage systems (ESS). It has developed proprietary technologies spanning the entire battery system, from basic cell materials (cathode, anode, electrolyte, separator) to cooling systems and software controls. It develops and commercializes a range of cell chemistries, including lithium titanate oxide (LTO), lithium iron phosphate (LFP), nickel manganese cobalt version 1 (NMC-1) and nickel manganese cobalt version 2 (NMC-2). It designs, develops and manufactures battery solutions for electric commercial vehicles, such as light, medium and heavy-duty trucks, buses, trains, mining trucks, marine and port vehicles, automated guided and specialty vehicles. Its products are marketed and sold through three regions: Europe, Middle East and Africa; North and South America, and Asia & Pacific.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Microvast Holdings Inc has a Value Score of 87, which is considered to be undervalued.

Microvast Holdings Inc’s price-to-book ratio is higher than its peers. This could make Microvast Holdings Inc less attractive for value investors when compared to the industry median at 2.01.

You can read more about Microvast Holdings Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Orbit International Corp.’s Value Grade

Value Grade:

Orbit International Corp. provides electronics manufacturers and software solutions. The Company, through its Orbit Electronics Group, is involved in the development and manufacture of custom electronic device and subsystem solutions for military, industrial and commercial applications through its production facilities in Hauppauge, NY and Carson, CA. Orbit Power Group, also located in Hauppauge, NY, designs and manufactures a range of power products, including AC power supplies, frequency converters, inverters, VME/VPX power supplies and various COTS power sources. Orbit Electronics Group is comprised of Orbit Instruments and Tulip Development Laboratory. Orbit Instrument designs and manufactures customized electronic subsystems and components for military aircraft, shipboard, handheld and ground-based programs, and designs hardware to support severe non-military applications. Tulip Development Laboratory designs and manufactures military and ruggedized computer peripheral products.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Orbit International Corp. has a Value Score of 92, which is considered to be undervalued.

Orbit International Corp.’s price-to-book ratio is higher than its peers. This could make Orbit International Corp. less attractive for value investors when compared to the industry median at 2.01.

You can read more about Orbit International Corp.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Electrical Components & Equipment Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Electrical Components & Equipment stocks as well as other industrys.

Choosing Which of the 6 Best Electrical Components & Equipment Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Allient Inc stock has a Value Grade of B.
• Altex Industries, Inc. stock has a Value Grade of B.
• CBAK Energy Technology Inc stock has a Value Grade of A.
• inTest Corp stock has a Value Grade of B.
• Microvast Holdings Inc stock has a Value Grade of A.
• Orbit International Corp. stock has a Value Grade of A.

Now that you have a bit more background about each of the 6 undervalued stocks in the Electrical Components & Equipment industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Electrical Components & Equipment Stocks

Want to learn more about Electrical Components & Equipment stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 6 Undervalued Electrical Components & Equipment Stocks for Monday, August 12
• 6 Undervalued Electrical Components & Equipment Stocks for Friday, August 09
• Why Enovix Corp’s (ENVX) Stock Is Down 11.37%
• 3 Undervalued Electrical Components & Equipment Stocks for Thursday, August 08

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.