Stocks & Investing
Mon, August 22, 2011Fri, August 19, 2011CVGI, TRW, MLR, TEN, LEA, ARGN, Auto/Truck - OEM Stocks Undervalued
Published in Stocks and Investing on Monday, August 22nd 2011 at 6:31 GMT by WOPRAI
August 22, 2011/ M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the Auto/Truck - OEM sector and these stocks are the most undervalued as of today. COMMERCIAL VEHICLE GROUP INC (NASDAQ:CVGI), TRW AUTOMOTIVE HOLDINGS CORP (NYSE:TRW), MILLER INDUSTRIES INC/TENN (NYSE:MLR), TENNECO INC (NYSE:TEN), LEAR CORP (NYSE:LEA), AMERIGON INC (NASDAQ:ARGN) are all expected to go Up as they are Undervalued according to industry standard valuation metrics. The valuation model employs a three-factor approach to stock valuation using fundamental variables--the company's trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company's forecasted 12-month EPS, and the 30-year Treasury yield--to create a highly accurate reflection of a company's fair value.
The chart below displays the projected Fair Value and Valuation discount/premium of the most undervalued stocks in the highlighted industry group:
Symbol Company Name Last Close Fair Value Valuation Industry
CVGI COMMERCIAL VEHICLE GROUP INC 5.88 16.03 63.30% Undervalued Auto/Truck - OEM
TRW TRW AUTOMOTIVE HOLDINGS CORP 35.41 60.99 41.90% Undervalued Auto/Truck - OEM
MLR MILLER INDUSTRIES INC/TENN 17.5 30.24 42.10% Undervalued Auto/Truck - OEM
TEN TENNECO INC 28.92 38.56 25.00% Undervalued Auto/Truck - OEM
LEA LEAR CORP 40.97 55.04 25.60% Undervalued Auto/Truck - OEM
ARGN AMERIGON INC 12.61 18.04 30.10% Undervalued Auto/Truck - OEM
Here are some of the variables that are utilized when calculating the Fair Market Valuation of a stock: Long-run EPS growth rate, Duration of Business-growth-cycle, Volatility of EPS growth rate, Systematic or beta risk of the firm, Correlation between the firm's EPS and the interest rate environment, EPS growth volatility, Dividend payout ratio, Buffer earnings, Interest rate related criteria: Interest rate (30 year yield) long-run level, Duration of interest rate cycle, Interest rate volatility. The Fair Market Valuation uses 12-month historic and forecasted EPS values and the current 30-year treasury yield as primary determinants. When calculating risk/return values such as the Sharpe ratio, the historic periods used are five years.
Some expected results of the Valuation Model are: the valuation of a stock increases in a declining interest rate environment. Increasing current and/or projected EPS will produce a higher Valuation. While long-term EPS growth would produce a corresponding long-term Valuation increase, concomitant long-term interest rate increases would offset EPS growth and depress the Valuation. The shorter a company's own business cycle, the higher its stock Valuation will be.
COMMERCIAL VEHICLE GROUP INC (NASDAQ:CVGI) - Commercial Vehicle Group, Inc., together with its subsidiaries, designs and manufactures integrated system solutions for the commercial vehicle markets worldwide. It offers seats and seating systems, including mechanical and air suspension seats, static seats, bus seats, heavy truck seats, and construction and other commercial vehicle seats; and office seating products for various office environments, such as emergency services, call centers, receptions, studios, boardrooms, and general office. The company also provides trim systems and components for the interior cabs of commercial vehicles, which include interior trim panels, door panels, A-Pillars, B-Pillars, instrument panels, headliners/wall panels, storage systems, floor covering systems, sleeper bunks, grab handles and armrests, and privacy curtains. In addition, it offers mirrors, windshield wiper systems, and a range of controls and control systems for window lifts, door locks, HVAC controls, and electric switch products; electronic wire harnesses and panel assemblies; and cab structures, sleeper boxes, bumper fascias and fender liners, body panels, and structural components for the commercial vehicle market. The company offers its products primarily to original equipment manufacturers for various end market vehicle applications, including local and long-haul commercial truck, agricultural, military, construction, bus, end market industrial, marine, municipal, recreation, and specialty vehicle. Commercial Vehicle Group, Inc. was founded in 2000 and is headquartered in New Albany, Ohio.
TRW AUTOMOTIVE HOLDINGS CORP (NYSE:TRW) - TRW Automotive Holdings Corp., together with its subsidiaries, designs, manufactures, and sells automotive systems, modules, and components for automotive original equipment manufacturers and related after-markets. It operates in four segments: Chassis Systems, Occupant Safety Systems, Electronics, and Automotive Components. The Chassis Systems segment offers product lines relating to steering gears and systems, foundation brakes, modules, brake controls, and linkage and suspension. The Occupant Safety Systems segment provides airbags, seat belts, steering wheels, and occupant restraint systems. The Electronics segment offers various products comprising safety electronics, radio frequency electronics, chassis electronics, powertrain electronics, and driver assist systems. The Automotive Components provides body controls, engine valves, and engineered fasteners and components. The company offers its products for passenger cars, light trucks, and commercial vehicles worldwide. TRW Automotive Holdings Corp. was founded in 1904 and is based in Livonia, Michigan.
MILLER INDUSTRIES INC/TENN (NYSE:MLR) - Miller Industries, Inc. engages in the manufacture and sale of vehicle towing and recovery equipment in North America and internationally. It offers wreckers, including conventional tow trucks to large recovery vehicles used to recover and tow disabled vehicles and other equipment; car carriers, specialized flat-bed vehicles with hydraulic tilt mechanisms used to transport new or disabled vehicles and other equipment; and transport trailers, specialized auto transport trailers with upper and lower decks and hydraulic ramps used for moving multiple vehicles for auto auctions, car dealerships, leasing companies, and other similar applications. The company offers its products under the Century, Challenger, Holmes, Champion, Eagle, Titan, Jige, Boniface, Vulcan, and Chevron brand names. Miller Industries sells its products through sales representatives and independent distributors primarily in the United States, Canada, Mexico, Europe, the Pacific Rim, the Middle East, South America, and Africa. The company was founded in 1994 and is based in Ooltewah, Tennessee.
TENNECO INC (NYSE:TEN) - Tenneco Inc., together with its subsidiaries, designs, manufactures, and sells automotive emission control and ride control systems and products worldwide. The companys emission control systems include catalytic converters and diesel oxidation catalysts to reduce harmful gaseous emissions; diesel particulate filters to eliminate particulate matter emitted from diesel engines; burner systems, which combust fuel and air inside the exhaust system; and hydrocarbon vaporizers and injectors to add fuel to a diesel exhaust system in order to regenerate diesel particulate filters. Its products also comprise lean NOx traps and selective catalytic reduction systems that reduce nitrogen oxide emissions from diesel powertrains; mufflers and resonators to provide noise elimination and acoustic tuning; exhaust manifolds that collect gases from individual cylinders of a vehicles engine and direct them into a single exhaust pipe; pipes to connect various parts of hot and cold ends of an exhaust system; hydroformed assemblies, which provide optimization in design and installation; and hangers and isolators used for system installation and elimination of noise and vibration. In addition, the company offers ride control systems, including shock absorbers, struts, vibration control components to reduce vibration between metal parts of a vehicle, kinetic suspension technology, roll-control and equal wheel-loading systems, and suspension systems that electronically adjust a vehicles performance, as well as other ride control products, such as load assist products, springs, steering stabilizers, suspension kits, and modular assemblies. It sells its products principally to original equipment manufacturers and replacement markets under Monroe, Rancho, Clevite Elastomers, Fric Rot, Walker, Fonos, and Gillet brands. The company was formerly known as Tenneco Automotive Inc. and changed its name to Tenneco Inc. in 2005. Tenneco Inc. was founded in 1987 and is based in Lake Forest, Illinois.
LEAR CORP (NYSE:LEA) - Lear Corporation engages in the design and manufacture of automotive seat systems and related components for automobiles and light trucks. Its seat components include mechanisms, seat trim covers, and seat foams. The company also offers traditional wiring and power management systems, as well as high-power and hybrid electrical systems. It has operations in North America, South America, Europe, and Asia. The company was founded in 1917 and is headquartered in Southfield, Michigan.
AMERIGON INC (NASDAQ:ARGN) - Amerigon Incorporated engages in the design, development, and marketing of electronic components and systems based on thermoelectric device (TED) technologies to car and truck original equipment manufacturers in the United States and internationally. It principally offers the Climate Control Seat, which provides comfort to automotive seat occupants by producing active heating and cooling. The company was founded in 1991 and is headquartered in Northville, Michigan.
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