Pendrell Corp – Negative Enterprise Value

The cheapest stock in our All Investable – Deep Value Stock Screen is Pendrell Corp (NASDAQ:PCO).

Pendrell Corp (Pendrell) invests in, acquires, and develops businesses with unique technologies that are protected by intellectual property (IP) rights in the United States. It manages four IP licensing programs comprising digital media, digital cinema, wireless technologies, and memory and storage technologies.

Pendrell is a stock that looks seriously undervalued. The company has a strong balance sheet, is lean on capex, has loads of free cash flow, and has NOL’s that it can carry forward to offset taxable income. In terms of its valuation, with the company’s current share price at $6.45 Pendrell is trading at a discount to both its Net Current Asset Value of $6.79 and its Tangible Book Value of $7.41. Pendrell also has an Acquirer’s Multiple of -0.57 and a FCF/Price yield of 7% (ttm).

Read our full stock analysis on Pendrell Corp at ValueWalk here.