5 Small-Cap Consumer Goods Stocks with Room to Grow

Michael Teague  |

For investors looking for good play on potentially undervalued stocks in the consumer sector with opportunities for growth over the next year, the following five companies may be of interest. These small cap companies sport market caps of under $2 billion, along with strong earnings-per-share growth over the past five years of upwards of 25 percent. Furthermore, their low price-to-free-cash flow ratios (generally, under 15) ostensibly indicate that these companies have the cash to do things that are of benefit to investors, such as offering good dividend yields and/or reinvesting in acquisitions or revenue streams in such a way as to ensure that EPS growth stays on a robust trajectory in the long-term.

Keep in mind that the EPS growth rates considered below are an average of the past five years. In other words, to get a better idea of how solid this growth has been, it may be better to use more specific numbers that reflect how steady or not this growth has been on a year-to-year or even quarter-to-quarter basis.

Finally, all of these stocks have analyst ratings of “buy or better”.

Cooper Tire & Rubber Co. (CTB) – The Akron, Ohio rubber and plastics manufacturer has a market cap of $1.64 billion, with shares currently priced at $26.03.  The company has an EPS growth rate for the past five years of 41.7 percent, and a P/FCF ratio of 5.69.

KapStone Paper and Packaging Corp. (KS) – The South Carolina-based paper and packaging company has a market cap of $1.2 billion, with shares currently selling at $25.78.  Its EPS growth rate for the past five years is a generous 119.72 percent, while its P/FCF ratio is 13.10.

LeapFrog Enterprises Inc. (LF) – The tech-based designer and manufacturer of educational toys headquartered in Emeryville, California has a market cap of $582.38 million with shares trading at $8.61. Its EPS growth for the past five years is a whopping 244.60 percent, with a P/FCF ratio of 13.63.

Standard Motor Products Inc. (SMP) – The Long Island City, New York based auto parts maker has a market cap of $550.19 million with shares trading at $24.11.  Its shares have grown at a rate of 40.82 percent over the last five years, while its P/FCF ratio is 9.06.

Schweitzer-Mauduit International Inc (SWM) – The Alpharetta, Georgia-based designer and producer of cigarette papers and cigar wrappers has a market cap of $1.14 billion with shares trading at $36.84.  EPS growth for the past five years is at 80.98 percent, with a P/FCF ratio of 9.21.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
LF LeapFrog Enterprises Inc n/a n/a n/a 0 Trade
SMP Standard Motor Products Inc. 49.45 -0.51 -1.02 45,590 Trade
ODC Oil-Dri Corporation Of America 28.21 0.05 0.18 7,734 Trade
CTB Cooper Tire & Rubber Company 32.32 -1.22 -3.64 1,587,162 Trade
SWM Schweitzer-Mauduit International Inc. 29.13 -0.56 -1.89 200,199 Trade

Comments

Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
XOM

     

What Is Petrolithium?

MGX Minerals explains the advantages of petrolithium and how they are helping to solve future problems today.

Emerging Growth

Margaux Resources Ltd.

Margaux Resources Ltd is a Calgary based resource company. The Company is focused on its Jersey Emeral Tungsten-Zinc property located in the southeast portion of British Columbia.