This small-cap media company operates three popular television networks in Russia, but that’s not all CTC Media (CTCM) has going for it. Billionaire owner Yury Kovalchuk is a longtime pal of President Vladimir Putin. That’s important in a country as, er, mercurial as Russia.
CTC also boasts a number of solid fundamentals. It has one of the strongest balance sheets in its industry subcategory, according to data from Thomson Reuters Stock Reports. It’s also solidly profitable, with net margins of more than 15% and a return on equity of 12%.
Shares are up a whopping 61% for the year-to-date and yet still trade at bargain prices. CTC’s forward price-to-earnings multiple offers a 17% discount to its own five-year average. The stock also trades at deep discounts by trailing earnings and price-earnings-to-growth (PEG).
Perhaps best of all, this small-cap stock is expanding earnings at a torrid pace. The annualized growth forecast stands at 34% a year for the next five years. The dividend is mighty generous too, with a yield of 5.1%.