Last Friday I rolled out the first four names in my Triple Net Active Value Portfolio. Today I will unveil the final four.
Seneca Foods (SENEA) is a small, sleepy packaged fruit and vegetable provider. Last year it generated nearly $1.4 billion in revenue, 82% of which was from canned vegetables, and posted $51 million in net income, or $5.83 a share. Seneca Foods currently trades at 2.71x net current asset value (NCAV), a 0.84x tangible book value and 12x trailing 12-month earnings. There is no current analyst coverage. Seneca Foods has been fairly active with stock buybacks and has reduced shares outstanding by about 16% over the past three-and-a-half years. Certainly not exciting, but a little bit of unexciting is OK in this portfolio, especially to counter some of the more cyclical names among the first four picks.
IPG Photonics (IPGP) has had a rough year, with shares down 51%. This laser product maker trades at 2.43x NCAV and 16x next year's consensus earnings estimates. IPG Photonics ended its latest quarter with net cash of $1.2 billion, or just over $23 a share. Its debt is minimal at $32 million.
Park Aerospace (PKE) , which provides composite materials used in the aerospace industry, trades at 2.22x NCAV. Park Aerospace stock currently garners no analyst coverage and yields 3.7%. PKE ended its latest quarter with $102 million, or $5 per share, in net cash and short-term investments, which is considerable given Friday's $10.89 closing price.
Benchmark Electronics (BHE) trades at 2.23x net current asset value and has been a familiar name over the years within my value screens. Benchmark Electronics trades at about 12.5x next year's consensus earnings estimates and has a dividend yield of 2.4%. BHE ended its latest quarter with $262 million in cash and $265 million in debt.
There you have it, eight "active" names -- some higher octane/more challenged, and some not very exciting. This group trades at an average of 2.46x NCAV and yields about 1.9% (not including Boise Cascade's (BCC) potential 2023 supplemental dividend).
