Here are 6 ASX 200 stocks with low PE multiples – are they bargain buys?

Here are 6 ASX 200 stocks with low PE multiples

Helia (ASX:HLA): 5.7x for FY25

Helia is a mortgage insurer, formally known as Genworth until it had to change its name after the US company by the same name broke up with it as an investor and commercial partner. Shares in this company are down (and so is its PE multiple by extension) after it lost CBA as a customer.

CBA has entered into exclusive negotiations with another provider, negotiations that if successful would lead to the current contract not being renewed beyond its expiry on December 31 2025. This contract represented 44% of GWP (Gross Written Premium) in FY24, although Helia has not (yet) updated any guidance it has given the market.

Woodside (ASX:WDS) – 13.1x for FY25

13.1x may not be a low PE multiple per se, but arguably low for the largest energy company on this continent. This company has producing projects, but has dedicated much of its efforts into the Scarborough LNG project. It is expected to produce 9m tonnes of LNG annually when it enters production next year. As of February 2025, this project was 80% complete, but it has cost over $12bn and seen a lot of community opposition.

Ramelius (ASX:RMS) – 6.8x for FY25

We’re surprised that this company has a low PE multiple. This is not just because it is in gold (the only hot metal right now having gone past US$3,000 for the first time). 20 years ago, it was another struggling aspirant, but is a major miner having had success at various projects (and cashed out some of them). Ramelius made headlines a couple of weeks ago when it announced it was merging with Spartan Resources, in a deal that’d create a company worth $4.2bn and having a combined resource estimate of 12.1Moz.

Magellan (ASX:MFG) – 9.1x for FY25

Many stocks that fell in the post-COVID era declined due to rising interest rates and/or Russia’s invasion of Ukraine. For Magellan, it was the loss of its mandate with UK fund manager St James’ Palace – a mandate worth $23bn to the group. Now, there were other reasons too such as the departure of CEO Brett Cairns and troubles facing fund managers which we spelled out in greater detail here.

Magellan would lose more big-name mandates in the following years including HESTA and Stack, but it was St James’ Palace that triggered alarm bells among the company’s investors.

Still, despite the low PE multiple, the company has $38.6bn in Funds Under Management, 3x Australian Ethical (ASX:AEF), and it has a new management team that hopes it can make money from US stocks.

Stanmore Coal (ASX:SMR) – 8.8x for FY25

Coal is a long way from dead, at least if this company is anything to go by. The company unveiled its CY24 results and it was a record year for the company on a production basis. It made EBITDA of US$700m and operating cash flows of US$408m, off the back of the production of 13.8Mt.

Moreover, Stanmore possesses 534Mt in Reserves and 5.1bt resources. Concerning some investors were declining sales prices, but Stanmore expects 13.8-14.4Mt production for CY25 and for capex to decline from $170m to $105-115m. Whether or not investors will overlook this expectation over concern about the long term future for coal (and thus maintain the company at its low PE multiple) remains to be seen, but this is quite plausible.

Pepper Money (ASX:PPM) – 6.4x for FY25

If you’re a lender other than the Big 4 or Macquarie, you’ve had a rough time – and its not the low PE multiples, the PE multiples are just a symptom of the problems rather than a problem. Even though interest rates increased 12x and investors shopped around for better deals, smaller lenders have customers that aren’t as high credit quality as those of the major banks. Pepper closed CY24 with a $98.2m profit, which was down 10%, and its saw its pre-tax and loss loan expense up 9%. Its loan loss expense increased by $29.4m ‘driven by late-stage arrears and increased insolvencies in the first half of the year’. To the company’s credit, it paid a 12.1c per share dividend which was 41% up on the year before and represented a yield of over 8%.

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