One of the cheapest stocks in our Acquirer’s Multiple, Small & Micro Cap – Stock Screener is Goldfield Corp (NYSEMKT:GV).
With a market cap around $136 million, few investors have ever heard of this great little micro-cap.
Goldfield Corporation (Goldfield), is a leading provider of electrical construction and maintenance services in the energy infrastructure industry primarily in the Southeast and mid-Atlantic regions of the United States and Texas. The company specializes in installing and maintaining electrical transmission lines for a wide range of electric utilities. Goldfield is also a real estate developer of residential properties on the east coast of Florida.
Goldfield recently reported record revenues for the fifth consecutive year but flies under the radar of most institutions simply because of its size. In fact, there are no analysts currently covering the stock but according to Nasdaq.com, the company had thirteen new institutional shareholders as of December 31, 2016.
The company’s growing revenues and strong margins are due mainly to its strong geographic footprint in the Southeast and mid-Atlantic regions of the United States and Texas, combined with a large modern fleet of equipment in each of its locations that maximize efficiency and minimize downtime.
Goldfield has a great track record of retaining its customers and completing its projects based mainly on its strict policy of committing only to an amount of work that the company believes it can properly supervise, equip and complete to the customer’s satisfaction and timetable. Goldfield has a 5 year CAGR of 15% when it comes to projects awarded.
The company has a healthy backlog and is well positioned to capitalize on some favorable industrial tailwinds, which include President Trump’s plan to prioritize and jumpstart infrastructure projects around the country, and projected transmission investments by EEI members.
Goldfield has a very strong balance sheet and solid free cash flows and has started to generate interest from a number of institutions.
In terms of the company’s valuation. Goldfield is currently trading on a FCF/Price Yield of 10% (ttm), a FCF/EV Yield of 10% (ttm) and an Acquirer’s Multiple of 6.45, or 6.45 times Operating Earnings. Add to this the company’s P/E of 11, compared to its 5Y average of 14.5, and Goldfield remains squarely in undervalued territory.
You can read our full stock analysis on Goldfield Corp at ValueWalk here.
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