ASX Value Stocks Trading Below Estimated Worth December 2024
Reviewed by Simply Wall St
As the countdown to Christmas continues, the ASX200 has seen a slight dip, closing down 0.06% at 8,309 points, with industrials leading as the strongest performing sector. In this fluctuating market environment, identifying undervalued stocks can be a strategic approach for investors looking to capitalize on potential growth opportunities within sectors that are currently underperforming.
Top 10 Undervalued Stocks Based On Cash Flows In Australia
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Data#3 (ASX:DTL) | A$6.55 | A$12.55 | 47.8% |
| SKS Technologies Group (ASX:SKS) | A$1.945 | A$3.84 | 49.4% |
| Charter Hall Group (ASX:CHC) | A$14.64 | A$28.34 | 48.3% |
| Ingenia Communities Group (ASX:INA) | A$4.72 | A$9.19 | 48.6% |
| ReadyTech Holdings (ASX:RDY) | A$3.15 | A$6.28 | 49.9% |
| Gold Road Resources (ASX:GOR) | A$2.10 | A$4.16 | 49.6% |
| Millennium Services Group (ASX:MIL) | A$1.145 | A$2.24 | 48.9% |
| Vault Minerals (ASX:VAU) | A$0.345 | A$0.66 | 47.5% |
| Genesis Minerals (ASX:GMD) | A$2.59 | A$4.89 | 47.1% |
| FINEOS Corporation Holdings (ASX:FCL) | A$1.91 | A$3.82 | 49.9% |
Let's take a closer look at a couple of our picks from the screened companies.
FINEOS Corporation Holdings (ASX:FCL)
Overview: FINEOS Corporation Holdings plc develops and sells enterprise claims and policy management software for the employee benefits and life, accident, and health insurance industries globally, with a market cap of A$625.89 million.
Operations: The company generates revenue of €122.24 million from its Software & Programming segment, focusing on enterprise claims and policy management solutions for the insurance sector.
Estimated Discount To Fair Value: 49.9%
FINEOS Corporation Holdings is trading at A$1.91, significantly undervalued compared to its estimated fair value of A$3.82, based on discounted cash flow analysis. Despite a slower forecasted revenue growth of 8.4% annually, it surpasses the Australian market average of 5.8%. Earnings are projected to grow substantially by 73.9% per year, with profitability expected within three years. The recent launch of the FINEOS Partner Hub enhances its platform's value proposition and customer experience through strategic partnerships.
- Our earnings growth report unveils the potential for significant increases in FINEOS Corporation Holdings' future results.
- Delve into the full analysis health report here for a deeper understanding of FINEOS Corporation Holdings.
Judo Capital Holdings (ASX:JDO)
Overview: Judo Capital Holdings Limited, with a market cap of A$2.08 billion, provides a range of banking products and services specifically tailored for small and medium businesses in Australia through its subsidiaries.
Operations: The company generates A$326.60 million in revenue from its banking segment, offering financial products and services to small and medium enterprises in Australia.
Estimated Discount To Fair Value: 13.1%
Judo Capital Holdings is trading at A$1.84, slightly below its estimated fair value of A$2.12, indicating it may be undervalued based on cash flows. Earnings are expected to grow significantly by 26.3% annually, outpacing the Australian market's 12.4%. However, Judo faces challenges with a high level of bad loans at 2.8% and a low allowance for bad loans at 50%. Recent board changes include appointing Brad Cooper as an Independent Non-Executive Director.
- The growth report we've compiled suggests that Judo Capital Holdings' future prospects could be on the up.
- Click to explore a detailed breakdown of our findings in Judo Capital Holdings' balance sheet health report.
Nuix (ASX:NXL)
Overview: Nuix Limited offers investigative analytics and intelligence software solutions across various regions, including the Asia Pacific, the Americas, Europe, the Middle East, and Africa, with a market cap of A$2.04 billion.
Operations: The company's revenue is primarily derived from its Software & Programming segment, which generated A$220.62 million.
Estimated Discount To Fair Value: 10.9%
Nuix is trading at A$6.2, below its estimated fair value of A$6.96, suggesting it could be undervalued based on cash flows. The company recently became profitable and is expected to see significant earnings growth of 40.2% annually, surpassing the Australian market's average growth rate. However, shareholders experienced dilution last year and Nuix's Return on Equity is forecasted to remain low at 11.6% in three years.
- In light of our recent growth report, it seems possible that Nuix's financial performance will exceed current levels.
- Get an in-depth perspective on Nuix's balance sheet by reading our health report here.
Where To Now?
- Explore the 40 names from our Undervalued ASX Stocks Based On Cash Flows screener here.
- Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
- Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.
Ready For A Different Approach?
- Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
- Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
- Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
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.
Valuation is complex, but we're here to simplify it.
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About ASX:NXL
Nuix
Provides investigative analytics and intelligence software solutions in the Asia Pacific, the Americas, Europe, the Middle East, and Africa.
Flawless balance sheet with reasonable growth potential.
