Stock Analysis

ASX Value Stock Picks Including Charter Hall Group For Potential Portfolio Growth

ASX:SEK
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The Australian market has recently seen a modest rise, with the ASX200 closing up 0.24% at 8,145 points, driven by strong performances in the IT and Real Estate sectors. In this environment of mixed sectoral performance, identifying undervalued stocks like those in Real Estate can be crucial for investors looking to capitalize on potential portfolio growth opportunities.

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Top 10 Undervalued Stocks Based On Cash Flows In Australia

NameCurrent PriceFair Value (Est)Discount (Est)
Smart Parking (ASX:SPZ)A$0.92A$1.7647.7%
Amaero (ASX:3DA)A$0.265A$0.4743.2%
Charter Hall Group (ASX:CHC)A$17.40A$34.2549.2%
Pantoro Gold (ASX:PNR)A$2.80A$4.9643.6%
Regis Healthcare (ASX:REG)A$7.24A$14.1348.8%
Integral Diagnostics (ASX:IDX)A$2.40A$4.1141.6%
Nuix (ASX:NXL)A$2.50A$4.2140.6%
Electro Optic Systems Holdings (ASX:EOS)A$1.175A$2.3449.9%
Sandfire Resources (ASX:SFR)A$9.89A$17.8644.6%
Superloop (ASX:SLC)A$2.50A$4.5845.4%

Click here to see the full list of 35 stocks from our Undervalued ASX Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results.

Charter Hall Group (ASX:CHC)

Overview: Charter Hall Group (ASX:CHC) is a leading fully integrated property investment and funds management group in Australia, with a market cap of A$7.99 billion.

Operations: Charter Hall Group generates revenue through its segments of Funds Management (A$441.60 million), Property Investments (A$332.50 million), and Development Investments (A$45.30 million).

Estimated Discount To Fair Value: 49.2%

Charter Hall Group is trading at A$17.4, significantly below its estimated fair value of A$34.25, suggesting it may be undervalued based on cash flows. Earnings are forecast to grow 30.45% annually, with profitability expected within three years, outpacing average market growth. Despite a slight dip in recent revenue to A$283.6 million from A$308.2 million last year, net income rose sharply to A$118.1 million, highlighting strong financial management and potential for future performance improvement.

ASX:CHC Discounted Cash Flow as at May 2025
ASX:CHC Discounted Cash Flow as at May 2025

Regis Healthcare (ASX:REG)

Overview: Regis Healthcare Limited provides residential aged care services in Australia and has a market cap of A$2.05 billion.

Operations: The company generates revenue of A$1.10 billion from its residential aged care services in Australia.

Estimated Discount To Fair Value: 48.8%

Regis Healthcare is trading at A$7.24, well below its estimated fair value of A$14.13, highlighting potential undervaluation based on cash flows. The company recently returned to profitability with a net income of A$24.36 million for the half-year ending December 2024, reversing a previous loss. Earnings are projected to grow significantly at 30.9% annually, surpassing market averages and indicating strong future performance potential despite slower revenue growth forecasts compared to earnings expansion.

ASX:REG Discounted Cash Flow as at May 2025
ASX:REG Discounted Cash Flow as at May 2025

SEEK (ASX:SEK)

Overview: SEEK Limited operates as an online employment marketplace service provider across Australia, South East Asia, New Zealand, the United Kingdom, Europe, and other international markets with a market cap of A$7.59 billion.

Operations: The company's revenue is derived from its Employment Marketplaces in ANZ, generating A$821.40 million, and in Asia, contributing A$240.90 million.

Estimated Discount To Fair Value: 10.1%

SEEK Limited is trading at A$21.67, slightly below its estimated fair value of A$24.09, suggesting some undervaluation based on cash flows. Despite a decline in sales to A$536.2 million for H1 2025 from the previous year, net income surged to A$143.5 million from A$29.8 million, reflecting improved profitability metrics such as basic earnings per share rising to A$0.402 from A$0.084 a year ago, indicating robust earnings growth potential despite recent insider selling activity.

ASX:SEK Discounted Cash Flow as at May 2025
ASX:SEK Discounted Cash Flow as at May 2025

Summing It All Up

  • Discover the full array of 35 Undervalued ASX Stocks Based On Cash Flows right here.
  • Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
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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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