Businesses that fall into this category range from consumer electronics to gambling, which tend to be considered as luxury items rather than necessities. Currently, Joyce and Globe International are cyclical companies I’ve identified as potentially undervalued, meaning their share price is below what these companies are actually worth. Investors can profit from the difference by investing in these cyclical stocks as the current market prices should eventually move towards their true values. If capital gains are what you’re after in your next investment, I’ve put together a list of undervalued stocks you may be interested in, based on the latest financial data from each company.

Joyce Corporation Ltd (ASX:JYC)

Joyce Corporation Ltd retails kitchen and wardrobe products in Australia. Established in 1886, and currently run by , the company provides employment to 78 people and with the market cap of AUD A$40.00M, it falls under the small-cap stocks category.

JYC’s shares are now floating at around -81% lower than its intrinsic level of $7.52, at the market price of AU$1.45, based on my discounted cash flow model. The mismatch signals a potential chance to invest in JYC at a discounted price. Additionally, JYC’s PE ratio is trading at 13.54x relative to its Specialty Retail peer level of, 16.34x indicating that relative to other stocks in the industry, we can invest in JYC at a lower price. JYC is also in good financial health, as current assets can cover liabilities in the near term and over the long run.

Continue research on Joyce here.

Globe International Limited (ASX:GLB)

Globe International Limited produces and distributes purpose-built apparel, footwear, and skateboard hardgoods for the board sports, street fashion, and workwear markets. Globe International was founded in 1984 and with the market cap of AUD A$53.90M, it falls under the small-cap category.

GLB’s stock is currently trading at -70% less than its true level of $4.34, at a price of AU$1.30, based on its expected future cash flows. This difference in price and value gives us a chance to buy low. Furthermore, GLB’s PE ratio is currently around 8.99x while its Luxury peer level trades at, 19.3x suggesting that relative to its comparable set of companies, we can buy GLB’s stock at a cheaper price today. GLB is also in good financial health, as current assets can cover liabilities in the near term and over the long run. GLB has zero debt on its books as well, meaning it has no long term debt obligations to worry about. Dig deeper into Globe International here.

Shaver Shop Group Limited (ASX:SSG)

Shaver Shop Group Limited operates as a retailer of specialist personal grooming products for men and women in Australia and New Zealand. Shaver Shop Group was formed in 1986 and has a market cap of AUD A$56.91M, putting it in the small-cap stocks category.

SSG’s shares are currently trading at -56% beneath its actual value of $1.03, at a price of AU$0.46, based on its expected future cash flows. This price and value mismatch indicates a potential opportunity to buy the stock at a low price. In addition to this, SSG’s PE ratio is trading at 5.94x relative to its Specialty Retail peer level of, 16.34x meaning that relative to its comparable set of companies, you can purchase SSG’s stock for a lower price right now. SSG also has a healthy balance sheet, with short-term assets covering liabilities in the near future as well as in the long run. The stock’s debt-to-equity ratio of 11.68% has been declining for the last couple of years indicating its ability to pay down its debt. Interested in Shaver Shop Group? Find out more here.

For more financially sound, undervalued companies to add to your portfolio, explore this interactive list of undervalued stocks.

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.