Looking for an ASX All Ords stock trading at a sharp discount to its peers?
Then you may wish to run your slide rule over workforce solutions company PeopleIn Ltd (ASX: PPE).
The ASX All Ords stock is trading about flat in 2023 and is down 12% over the past 12 months. That compares to a 3% loss posted by the All Ordinaries Index (ASX: XAO) over that same time.
PeopleIn is also known for its reliable, twice-yearly dividends. Its shares trade on a trailing dividend yield of 4.4%, fully franked.
At the current share price, PeopleIn trades at a price-to-earnings (PE) ratio of about 12 times.
The ASX All Ords stock trading at a 35% discount
Josh Clark, portfolio manager of QVG Capital's long-short fund, named PeopleIn as the most undervalued share on the ASX.
"PeopleIn is a diversified labour services business that has delivered double-digit organic growth supplemented by sensible acquisitions," Clark said (courtesy of the Australian Financial Review).
"In fact," he said of the ASX All Ords stock, "they're at a 35% discount to the average industrial despite having grown EPS (earnings per share) at 22% over an extended period."
Addressing potential concerns about why PeopleIn is trading at a steep discount, Clark said:
Stocks are always cheap for a reason but in this case, it's non-operational. Low liquidity and their gearing capacity appear to be keeping a lid on the valuation. However, if they continue to grow as we expect, these things will be resolved in time.
PeopleIn released its half-year results on 17 February.
The ASX All Ords stock reported revenue of $597 million for the six months, up 89% year on year. Normalised profits came in at $21 million, up 50% from the prior corresponding period.
How has the PeopleIn share price performed longer-term?
As long-term investors, it pays to take a step back to see how a company has fared over more than just the past year.
In the case of this ASX All Ords stock, if you'd bought shares five years ago, you'd be sitting on a gain of 105%. And that doesn't include the dividend payouts.
