Stock Analysis

3 Stocks Estimated To Be Up To 47.3% Below Intrinsic Value

WBAG:SBO
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As global markets experience a rebound, driven by easing core inflation in the U.S. and strong bank earnings, investors are increasingly focused on value stocks, which have outperformed growth shares recently. In this environment of cautious optimism and potential rate cuts on the horizon, identifying undervalued stocks becomes crucial for those seeking to capitalize on market opportunities.

Top 10 Undervalued Stocks Based On Cash Flows

NameCurrent PriceFair Value (Est)Discount (Est)
Avant Group (TSE:3836)¥1891.00¥3777.2249.9%
Atlantic Union Bankshares (NYSE:AUB)US$37.87US$75.5949.9%
Berkshire Hills Bancorp (NYSE:BHLB)US$28.50US$56.9950%
Gaming Realms (AIM:GMR)£0.36£0.7249.9%
Equity Bancshares (NYSE:EQBK)US$43.13US$86.0449.9%
CYND (TSE:4256)¥1055.00¥2104.7449.9%
Greenworks (Jiangsu) (SZSE:301260)CN¥14.00CN¥27.8349.7%
QD Laser (TSE:6613)¥299.00¥597.2049.9%
LifeMD (NasdaqGM:LFMD)US$4.90US$9.7749.8%
Shinko Electric Industries (TSE:6967)¥5879.00¥11701.4149.8%

Click here to see the full list of 874 stocks from our Undervalued Stocks Based On Cash Flows screener.

Let's take a closer look at a couple of our picks from the screened companies.

Suwen Electric Energy TechnologyLtd (SZSE:300982)

Overview: Suwen Electric Energy Technology Co., Ltd. operates in the electric energy technology sector and has a market capitalization of CN¥3.40 billion.

Operations: Suwen Electric Energy Technology Co., Ltd. generates its revenue from various segments within the electric energy technology sector.

Estimated Discount To Fair Value: 38.5%

Suwen Electric Energy Technology Ltd. is trading at CN¥17.39, significantly below its estimated fair value of CN¥28.28, indicating it may be undervalued based on cash flows. Despite a recent drop from the S&P Global BMI Index and declining earnings, revenue is forecast to grow rapidly at 34.8% annually, outpacing the market average. The company has completed a share buyback worth CN¥100.07 million, which could enhance shareholder value despite current profitability challenges.

SZSE:300982 Discounted Cash Flow as at Jan 2025
SZSE:300982 Discounted Cash Flow as at Jan 2025

Rakus (TSE:3923)

Overview: Rakus Co., Ltd., along with its subsidiaries, offers cloud services in Japan and has a market cap of ¥318.41 billion.

Operations: The company generates revenue through its Cloud Business, which accounts for ¥37.28 billion, and its IT Outsourcing Business, contributing ¥6.49 billion.

Estimated Discount To Fair Value: 13.8%

Rakus Co., Ltd. is trading at ¥1,789.5, below its estimated fair value of ¥2,075.25, suggesting potential undervaluation based on cash flows. Earnings are projected to grow significantly at 25.6% annually over the next three years, surpassing market averages. Recent strategic expansion into Indonesia aims to leverage regional talent for cloud services development, potentially enhancing future growth prospects despite current valuation challenges and modest revenue growth forecasts of 16.7% per year.

TSE:3923 Discounted Cash Flow as at Jan 2025
TSE:3923 Discounted Cash Flow as at Jan 2025

Schoeller-Bleckmann Oilfield Equipment (WBAG:SBO)

Overview: Schoeller-Bleckmann Oilfield Equipment Aktiengesellschaft manufactures and sells steel products globally, with a market cap of €536.61 million.

Operations: The company's revenue segments include Oilfield Equipment generating €305.97 million and Advanced Manufacturing & Services contributing €418.15 million.

Estimated Discount To Fair Value: 47.3%

Schoeller-Bleckmann Oilfield Equipment is trading at €34.05, significantly below its estimated fair value of €64.6, indicating potential undervaluation based on cash flows. Despite a decline in recent earnings and profit margins, the company's earnings are forecast to grow 20.7% annually over the next three years, outpacing the Austrian market's growth rate. However, revenue growth remains modest at 3.8% per year with a low forecasted return on equity of 14.2%.

WBAG:SBO Discounted Cash Flow as at Jan 2025
WBAG:SBO Discounted Cash Flow as at Jan 2025

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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