3 Beaten-Down Stocks That Are Trading Below Their Book Values

Core Insights - The article discusses the implications of stocks trading below their book value per share (BVPS) and highlights three companies that are currently struggling in this context [1][2][3]. Viatris - Viatris was formed in 2020 from a spinoff of Pfizer's Upjohn business and Mylan, but has lost 52% of its value since then, with significant losses occurring since mid-November 2024 [4][5]. - The company reported a net loss of $634 million last year, but generated free cash flow of$1.9 billion, which covered its dividend payments of approximately $575 million [5][6]. - Viatris' stock trades at about half of its book value, raising concerns about it being a value trap, as losses have outweighed dividend income for investors [6]. JetBlue Airways - JetBlue is trading at around half of its book value and has seen a nearly 51$684 million in 2024, with losses recorded for the past four years [7][8]. - Economic challenges, including tariffs and trade wars, are expected to hinder JetBlue's recovery, making it a risky investment at this time [9]. Plug Power - Plug Power, which develops hydrogen fuel cell systems, has seen its stock price decline by over 43% this year and is trading at a BVPS of 0.6, indicating a steep discount [10][11]. - The company has incurred net losses of nearly $3.5 billion over the past two years, which is almost three times its market cap of$1.2 billion [11][12]. - Due to its significant financial losses, Plug Power is considered a risky investment, and a considerable improvement in its financials is necessary before it can be deemed a viable option [12].