3 ASX Value Stocks Trading Up To 39.4% Below Intrinsic Estimates

Over the last 7 days, the Australian market has risen 1.4%, with the Materials sector gaining 3.3% and the Energy sector shrinking by 3.1%. Over the past year, the market is up 12%, and earnings are expected to grow by 14% per annum over the next few years. In this context, identifying undervalued stocks that are trading below their intrinsic estimates can offer significant opportunities for investors looking to capitalize on potential growth in a rising market.

Top 10 Undervalued Stocks Based On Cash Flows In Australia

Name	Current Price	Fair Value (Est)	Discount (Est)
Mader Group (ASX:MAD)	A$5.35	A$10.53	49.2%
GTN (ASX:GTN)	A$0.46	A$0.9	48.7%
Hansen Technologies (ASX:HSN)	A$4.25	A$8.22	48.3%
Ansell (ASX:ANN)	A$29.60	A$56.97	48%
IPH (ASX:IPH)	A$6.34	A$11.77	46.1%
HMC Capital (ASX:HMC)	A$8.14	A$15.47	47.4%
MLG Oz (ASX:MLG)	A$0.64	A$1.19	46.2%
Millennium Services Group (ASX:MIL)	A$1.145	A$2.24	48.9%
Superloop (ASX:SLC)	A$1.74	A$3.31	47.5%
Matrix Composites & Engineering (ASX:MCE)	A$0.29	A$0.54	46.7%

Click here to see the full list of 49 stocks from our Undervalued ASX Stocks Based On Cash Flows screener.

Let's uncover some gems from our specialized screener.

Cobram Estate Olives (ASX:CBO)

Overview: Cobram Estate Olives Limited is involved in olive farming and the production and marketing of olive oil across Australia, the United States, and internationally, with a market cap of A$698.09 million.

Operations: Cobram Estate Olives generates revenue of A$64.90 million from its USA olive oil operations and A$156 million from its Australian olive oil operations.

Estimated Discount To Fair Value: 39.4%

Cobram Estate Olives appears undervalued based on cash flows, trading at A$1.72, below the estimated fair value of A$2.83. Despite a high level of debt, earnings grew by 139.7% last year and are forecast to grow at 20.15% per year, outpacing the Australian market's expected growth of 13.7%. Recent earnings results showed significant revenue and net income increases, reinforcing its potential as an undervalued stock in Australia.

• Insights from our recent growth report point to a promising forecast for Cobram Estate Olives' business outlook.
• Unlock comprehensive insights into our analysis of Cobram Estate Olives stock in this financial health report.

National Storage REIT (ASX:NSR)

Overview: National Storage REIT (ASX:NSR) is the largest self-storage provider in Australia and New Zealand, operating over 225 centres and serving more than 90,000 residential and commercial customers, with a market cap of A$3.28 billion.

Operations: The company's revenue segment primarily consists of A$354.69 million from the operation and management of storage centres.

Estimated Discount To Fair Value: 34.8%

National Storage REIT is trading at A$2.40, significantly below its estimated fair value of A$3.68, suggesting it may be undervalued based on cash flows. Earnings are forecast to grow 21.4% annually, surpassing the Australian market's growth rate of 13.7%. Despite a recent decline in net income from A$37.3 million to A$28.93 million, revenue increased to A$355.37 million from A$330.04 million last year, highlighting its potential as an undervalued stock in Australia.

• Our expertly prepared growth report on National Storage REIT implies its future financial outlook may be stronger than recent results.
• Get an in-depth perspective on National Storage REIT's balance sheet by reading our health report here.

Regis Healthcare (ASX:REG)

Overview: Regis Healthcare Limited (ASX:REG) provides residential aged care services in Australia and has a market cap of approximately A$1.37 billion.

Operations: Regis Healthcare generates revenue primarily from the provision of residential aged care services, amounting to A$882.29 million.

Estimated Discount To Fair Value: 36.3%

Regis Healthcare, trading at A$4.87, is significantly undervalued with an estimated fair value of A$7.64. The company is expected to achieve profitability within the next three years and has a forecasted earnings growth rate of 62.7% annually. Revenue growth is projected at 8.4% per year, outpacing the broader Australian market's 5.4%. Additionally, Regis Healthcare's return on equity is anticipated to be very high in three years' time (305.3%).

• Our growth report here indicates Regis Healthcare may be poised for an improving outlook.
• Click to explore a detailed breakdown of our findings in Regis Healthcare's balance sheet health report.

Key Takeaways

• Take a closer look at our Undervalued ASX Stocks Based On Cash Flows list of 49 companies by clicking here.
• Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

Seeking Other Investments?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
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• 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.

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