Although it's been a great year for the All Ordinaries Index (ASX: XAO), not all ASX All Ords stocks have shared in that prosperity.
oOh!Media Ltd (ASX: OML) is one such ASX All Ords share.
This outdoor advertising stock was going for $1.38 a share this time last year. But today, those same shares are currently 5.4% lower than that price, currently trading at $1.30.
Even worse, Ooh!Media stock has fallen a nasty 20.6% over 2024 to date, going off the $1.65 share price this company started January at.
Long-term investors have done even worse. This ASX All Ords stock last hit an all-time high way back in 2016, when Ooh!Media closed in on $4.50 a share. Since that high watermark, investors would be down more than 70%.
But this laggardly share price performance has attracted the eye of one ASX expert. This expert thinks that this company's recent poor run of fortune has left Ooh!Media stock looking "extremely undervalued".
Fund manager calls "the most undervalued" ASX All Ords stock
Nick Sladen, co-portfolio manager of the LSN Capital Emerging Companies Fund, recently spoke to the Australian Financial Review (AFR). As the report states, Sladen identified Ooh!Media as the "most undervalued" stock in the markets right now, despite "things improving inside the company".
Sladen points out that the Ooh!Media share price is "trading on a very cheap 11 times price-to-earnings ratio", which is "well below what it traded on for many years before COVID-19". Given Ooh!Media is one of the two major market players in its space, Sladen reckons "this seems far too low".
He points to the company's "hard to replicate" advertising real estate assets across rail lines, airports, roads and office space as one of the company's inherent strengths. Sladen also likes how Ooh!Media has digitised many of its billboards in recent years, which has "improved yield and profitability" as well as gross margins.
The fund manager is anticipating that Ooh!Media will continue to succesd going forward, pointing to likely new contracts, as well as contracts at "Sydney metro rail and Woollahra street furniture".
No doubt Ooh!Media's long-suffering shareholders will be delighted to hear these bullish views on this ASX All Ords stock. But we'll have to see what happens.
At the current Ooh!Media share price, this ASX All Ords stock is trading on a market capitalisation of $705.8 million, with a dividend yield of 4.02%.
