There are 4,143 publicly traded companies based in North America (excluding the financial services and real estate sectors) that have generated at least $1 million in revenue over the trailing twelve month (TTM) period. Of these 4,143 companies, 83.64% of them or 3,465 companies trade average daily dollar volume of at least $10,000.
Of these 3,465 companies, 69.06% of them or 2,393 companies have a positive tangible book value. Of these 2,393 companies, only 3.84% of them or 92 companies are currently trading for less than 0.50X their tangible book value.
Of the 92 publicly traded companies based in North America trading for less than 0.50X their tangible book value, 55.43% of them or 51 companies generated positive free cash flow over the TTM period. Of these 51 companies, 52.94% of them or 27 companies also generated positive EBITDA over the TTM period. Of these 27 companies, only 37.04% of them or 10 companies had healthy gross margins of 25% or higher over the TTM period.
Of these 10 companies, only 20% of them or 2 companies were strong enough to repurchase shares of their common stock during the most recent quarter.
Of the final 2 companies, only one of them has seen major insider buying throughout 2020: Enterprise Group (TSX: E).
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. This message is meant for informational and educational purposes only and does not provide investment advice.
Preparing Americans for Hyperinflation
