Why this ASX All Ords stock is 'extremely undervalued' right now

This expert is calling the market's cheapest stock.

| More on:
Woman looking at her smartphone and analysing share price.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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%.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Cheap Shares

Smiling couple looking at a phone at a bargain opportunity.
Cheap Shares

History says these 3 ASX shares are dirt cheap today

These beaten-down ASX shares could be offering great value for money.

Read more »

Man sitting in a plane looking through a window and working on a laptop.
Cheap Shares

After jumping 11% in a month, is this ASX bargain stock a buy?

This stock is on analyst radars after its FY24 results.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
52-Week Lows

Why I think this ASX penny stock is a bargain at its 52-week low

This health tech share hasn't been feeling the love from the market lately. But is there an upside on the…

Read more »

A woman peers through a bunch of recycled clothes on hangers and looks amazed.
Cheap Shares

My favourite ASX share is up 28% but still dirt cheap with a P/E of 4.95!

Here's one stock that I think is looking might cheap today...

Read more »

A woman smiles as she looks out an aeroplane window.
Travel Shares

This ASX 200 stock is up 17% this year but still dirt cheap! Should I buy it?

This company has a positive outlook at a positive price, according to brokers.

Read more »

A man analyses stockmarket graph on his computer.
Cheap Shares

Time to buy? 1 ASX share that hasn't been this cheap in years

Could this be the time to look at this beaten-down company?

Read more »

Two excited woman pointing out a bargain opportunity on a laptop.
Cheap Shares

2 bargain ASX shares with at least 20% growth and that pay dividends

These two names are favoured by brokers.

Read more »

two men talking in front of a transportation truck
Cheap Shares

Why I think this ASX penny stock is a bargain near its 52-week low

Looking for a bargain ASX share to invest in? This small cap looks interesting to me.

Read more »