Housing stocks have a bad rep as of late, especially given Toll Brothers weak results. But Standard Pacific (SPF) has been unfairly beaten down, to the point where it's Price-Book Ratio was below .8 ! This market irrationality has been realized by some over the last two weeks as the stock has begun to make a quick turnaround and currently has a PBR of .91. In a housing sector where companies are known for harboring much debt, its debt-equity ratio of 1.21 is impressive.
Moreover, it carries a bargain P/E of 4.74, well below it's average. This is a very profitable company that we are discussing with a 5 year return of 147%.
$27.05 (12/05/06)
