A Look Into Utilities Sector Value Stocks

What Defines a Value Stock?

A value stock is traditionally defined in terms of how investors in the marketplace are valuing that company's future growth prospects. Low P/E multiples are good base indicators that the company is undervalued and can most likely be labelled as a value stock.

Below is a list of notable value stocks in the utilities sector:

1. Companhia De Saneamento SBS - P/E: 9.33
2. China Recycling Energy CREG - P/E: 2.93
3. Suburban Propane Partners SPH - P/E: 7.79
4. Kenon Hldgs KEN - P/E: 4.46
5. UGI UGI - P/E: 6.45

Companhia De Saneamento has reported Q3 earnings per share at 0.13, which has decreased by 38.1% compared to Q2, which was 0.21. The company's most recent dividend yield sits at 2.94%, which has decreased by 0.83% from 3.77% last quarter.

China Recycling Energy has reported Q3 earnings per share at -0.08, which has increased by 50.0% compared to Q2, which was -0.16. China Recycling Energy does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Suburban Propane Partners's earnings per share for Q4 sits at -0.19, whereas in Q3, they were at -0.16. The company's most recent dividend yield sits at 8.14%, which has decreased by 0.42% from 8.56% last quarter.

This quarter, Kenon Hldgs experienced a decrease in earnings per share, which was 3.34 in Q1 and is now 3.2. Kenon Hldgs does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

UGI's earnings per share for Q4 sits at -0.34, whereas in Q3, they were at 0.13. The company's most recent dividend yield sits at 3.05%, which has increased by 0.09% from 2.96% last quarter.

The Significance: A value stock may need some time to rebound from its undervalued position. The risk of investing in a value stock is that this emergence may never materialize.