Which is the best cheap FTSE share in a good company to buy right now?

first_img Image source: Getty Images. £7.07 13.53% €7,697 PSN 21.65% See all posts by James J. McCombie net profit margin £6.64 Airlines Which is the best cheap FTSE share in a good company to buy right now? 23.08% Rio Tinto Persimmon BDEV 18.61% 54.76% 15.37% Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. 0.3482 16.95% Size 5.51% Credit profile return on equity 12.15% 11.01% return on investment sales (millions) £5.19 8.19% Annual dividend yield 30.98% $43,165 11.64% Our 6 ‘Best Buys Now’ Shares £3,649 26.56% return on assets 44.99% James J. McCombie | Wednesday, 13th May, 2020 | More on: PSN operating margin £62.57 28.21% 1.56 16.61% Home Construction 19.02% 16.15% “This Stock Could Be Like Buying Amazon in 1997” Growth (5 years) RYA RIO Return on investment £4763.00 €7268.00 Persimmon, with a mean of 4.2 and a median of 5, looks like the best investment case. We can also look at how brokers view these stocks. Brokers issue buy, outperform, hold, underperform, and sell recommendations. As of 7 May, 82% of broker recommendations for Persimmon were either buy or outperform, the highest percentage for our group of five.Building for the futureIn scoring highest in the analysis and being overwhelming recommended by brokers, Persimmon looks like a cheap and good company. But given the state of the UK economy at present and the pain that is to come, what does the future look like for housebuilders?The UK’s listed housebuilders are starting construction again this week, which is good news for the industry. I would imagine finishing off partly built homes will be the priority. Social distancing at building sites and a depressed housing market will make laying new foundations a challenging prospect. Homebuilders will be building less.Showrooms remain closed, and homebuyers are still cautious about taking on mortgages, which will make the backlog of houses challenging to clear. But things will pick up as the months roll on. Interest rates will remain low, which is a boon for borrowers. The banks are not in trouble like they were in the great financial crisis, and mortgage availability should pick up quickly this time around.Persimmon focuses on cheaper homes and first-time buyers. Demand for these types of properties tends to bounce back faster. During the last financial crisis, many homebuilders had shocking balance sheets. Persimmon currently operates with very little debt and appears to have ample liquidity.Cheap stock, good valueI believe that at the current share price, there is an opportunity to buy into Persimmon cheaply. Based on the analysis, broker recommendations, and thinking about the company’s prospects, I think Persimmon looks like a good company. FTSE investors should be on the lookout for cheap shares in good companies. Profitability 13.96% Mondi 23.26% 24.18% 0% 26.31% 0% Paper I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Enter Your Email Address 7.79% 18.57% 1.61% Barratt Developments 1.05 10.61% 8.02% Total debt/total equity Mining 40.03% current ratio The market crash made many a FTSE share cheap. But just because a share is cheap does not mean it is worth buying. Cheap shares in good companies are what long-term investors should be looking for, and a simple stock screen can help find them.Shares trading at between 5 and 12 times earnings per share and less than 3 times book value per share can be considered cheap. Companies that have had negative five-year growth rates in either revenue or profit or with market caps of less than £5bn should be screened out.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…It’s cheap but is it good?The screen leaves five companies for consideration: Barratt Developments, Mondi, Persimmon, Rio Tinto, and Ryanair. Barratt and Persimmon are housebuilders, Mondi is a packaging and paper company, Ryanair is an airline, and Rio is a miner.Similar to my analysis of FTSE supermarket stocks, we can compare these five companies on profitability, return, credit profile, and growth. For each parameter, the best performing company gets five points, and the worst gets one. Averaging the scores for each company will allow a ranking of them in terms of investment attractiveness, with the highest score winning. The table below shows data for each of the five companies. market cap (billions) Home Construction 0 3.84 14.05% I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. 0.0519 0.6908 4.08 11.52% 0% 18.70% revenue Subsector €9.68 5.89% 10.20% 18.91% EPS 6.79% 15.77% gross margin MNDI Ticker 0.5669 Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Ryanair Holdings 6.09% James J. McCombie has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. 16.02% 5.71% Simply click below to discover how you can take advantage of this. 1.07 9.54% 7.80%last_img read more