Five shares of the Ibex 35 at a demolition price that leaves an Ibex 35 in full recovery
Despite the recent falls in the electricity sector due to the latest reform of the sector by the Government, the Ibex 35 has good fundamentals to continue its recovery due to the advance of vaccination in Europe, the arrival of European funds and the economic opening that will take place in the coming months.
Among the values that are rising the most at this time is to ask if there are opportunities, if they have revaluation potential and if they have good fundamentals to continue their escalation. If you look at the fundamental ratios of the companies, ArcelorMittal, Repsol, Acerinox, Telefónica and Mapfre stand out for the price at which they are quoted on profits, for their book value price, for their dividend …
They all have in common that 2020 was a particularly tough year, so long-term investors in these companies may still have significant losses in these positions. It would be convenient, at this time, to maintain, at a time when the recovery is in their favor and nothing seems to change in the short term.
ArcelorMittal has appreciated by 44.62% so far this year, which leaves it with a limited potential of 2% according to the consensus of Reuters analysts. It trades at an estimated price-earnings ratio (PER) of 5.66 times, a book value price or book value (PVC) of 0.8 times … which means, at the end of the day, that its shares continue to trade cheap with respect to its profits and a cash flow of 5.62. The steelmaker also operates in a cyclical sector, which will benefit from global economic growth and stability in relations between China and the United States.
Repsol, for its part, accumulated a rise in the Ibex 35 of 37%, with a potential revaluation of 7.9%. The Spanish oil company trades with a PER of 10.74 times, at a book value price of 0.78 times, with a dividend yield of 5.36% and a price / cash flow of 4 times. As ArcelorMittal is also a cyclical company that is already benefiting from the increased mobility, the reopening of the Spanish economy…
Acerinox also enjoys the approval of the market this 2021, by accumulating a rise of 33.25%. The consensus of the analysts gives it a potential of 11.58% and it also trades with attractive ratios such as a PER of 12.15 times, a book value price of 1.78 times or a price / cash flow of 8.71 times. Everything, in addition, seasoned with a dividend yield of 4.26%.
Telefónica and Mapfre are two other companies that are experiencing a great 2021. The telecommunications operator is revalued by 24.37% and the insurer by 22.64%. Telefónica is trading at demolition prices in relation to its historical average, since it is trading at a PER of 8.94 times and a book value price of 1.34 times. It is true that the estimated cash flow per share for this 2021 will decrease from 2.48 times to 2.04 times, but the dividend yield reaches 7.44%, which leaves it as one of the kings of the dividend on the Ibex 35.
The consensus of the analysts gives it an upward potential in the Ibex 35 of 12.56%, which leaves it among these companies as the one with the greatest possible route on the stock market.
From one king of the dividend to another like Mapfre. The company led by Antonio Huertas trades an estimated PER of 8.26 times and at a price by book value of 0.66 times. The return on its dividend reaches 7.72%. Mapfre and Telefónica are not cyclical companies, they provide a more defensive profile to this peculiar portfolio, although they will continue to benefit from the recovery of the Ibex 35.