Investors looking to grab big value and some chunky dividends need to pay Trifast (LSE: TRI) close attention. You might not have heard of the small-cap before, but its products are essential in keeping the world turning. It provides screws, bolts and other sorts of fastenings essential in the production lines of the automotive, electronics and domestic appliance industries.
Trifast generates the lion’s share of its profits from Europe and Asia, and it has a wide global footprint to effectively service the needs of its customers. Indeed, it makes a point of working closely with each of its clients to build bespoke fastening solutions and has set up hubs close to original equipment solutions (OEMs) for this very purpose.
Today, Trifast packs an undemanding forward price-to-earnings (P/E) ratio of 14 times. It also packs a chunky 3.9% corresponding dividend yield too. Profits are likely to come under pressure as the global economy enters a period of slowdown. Still, this is a small-cap that’s too good to miss at current prices. I’d happily buy it for my own ISA right now.
The 5.5%-yielding small-cap
Devro is another small-cap that’s exceptionally cheap, given its bright long-term growth picture. I’m particularly encouraged by the tremendous sales potential in its Asia Pacific territory, a region in which it’s invested heavily in its sales and manufacturing processes over the past decade.
The sausage casings maker stands to gain from exploding meat consumption on the continent in the coming decades. A report from consultancy Asia Research & Engagement suggests that, thanks to “growing wealth and urbanisation rates,” meat and seafood consumption in Asia Pacific will balloon by 33% by 2030, and by a stunning 78% by the middle of the century.
Today, Devro trades on a forward P/E ratio of 11 times. It carries a mighty dividend yield of around 5.5% too. I reckon it’s worthy of serious attention from value chasers.
Rising population levels along with those increasing personal incomes bode well for Devro. And the same can be said for Carr’s Group, a manufacturer of animal feed in Europe and the US. It provides other agricultural services to help farmers put food to plates.
Carr’s Group has been investing heavily in its engineering division in recent years too. It offers product for a variety of industries, but it’s the field of nuclear decommissioning and defence in which it offers plenty of profits opportunity over the next decade and beyond. One of the biggest steps it’s made in this area is the acquisition of NW Total Engineered Solutions last year for just under £10m.
The small-cap trades on a forward earnings multiple of just 10 times right now. A 4.3% dividend yield also offers lots for income investors to get excited about. I reckon this is another brilliant small-cap to snap up today.
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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Devro. 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.