Trading Ideas |
Saturday, March 22, 2014
C&F Financial Corp (CFFI) is one of my favorite stocks held by Small Cap Value ETFs and mutual funds and earns my Attractive rating. C&F Financial has grown after-tax profits (NOPAT) by 21% compounded annually over the last five years and has generated positive and increasing economic earnings over the same time period. The company currently earns a return on invested capital (ROIC) of 12%, an increase from 7% in 2008. This small bank’s strong growth has drawn the attention of investors, as CFFI’s stock price has increased by 43% year-to-date. Even with the jump in price, the stock is still undervalued. CFFI currently trades at ~$56/share, which gives it a price-to-economic book value (PEBV) of only 0.5. At this valuation, the market expects the company’s NOPAT to permanently decline by 50%. Given the company’s history of consistent growth, these expectations seem very low. Despite the increase in price, there is still plenty of value left in CFFI for investors.
http://www.gurufocus.com/stock/CFFI weird gives z score high ranking, miscalculation = = special situation |
