ASX Value Picks Including Capricorn Metals And Two Others Below Estimated Worth

In a session marked by cautious investor sentiment, the ASX closed slightly down as market participants awaited the latest CPI data and monitored geopolitical developments. Amid these conditions, identifying undervalued stocks can be advantageous, particularly those with strong fundamentals that may benefit from broader economic shifts.

Top 10 Undervalued Stocks Based On Cash Flows In Australia

Click here to see the full list of 30 stocks from our Undervalued ASX Stocks Based On Cash Flows screener.

Let's uncover some gems from our specialized screener.

Capricorn Metals (ASX:CMM)

Overview: Capricorn Metals Ltd, with a market cap of A$5.22 billion, explores, develops, evaluates, and produces gold in Australia through its subsidiaries.

Operations: The company's revenue primarily comes from its Karlawinda segment, generating A$505.89 million.

Estimated Discount To Fair Value: 19.6%

Capricorn Metals is trading at A$12.1, below its estimated fair value of A$15.05, suggesting potential undervaluation based on cash flows. The company's earnings and revenue are forecast to grow significantly faster than the Australian market over the next three years, with expected annual earnings growth of 25.4% and revenue growth of 24.3%. Recent earnings results showed strong performance with sales reaching A$505.89 million and net income increasing to A$150.28 million from the previous year.

• The analysis detailed in our Capricorn Metals growth report hints at robust future financial performance.
• Unlock comprehensive insights into our analysis of Capricorn Metals stock in this financial health report.

Resimac Group (ASX:RMC)

Overview: Resimac Group Limited operates in Australia and New Zealand, offering residential mortgage and asset finance lending products, with a market cap of A$464.49 million.

Operations: The company's revenue segments include Home Loan Lending at A$132.63 million, New Zealand Lending at A$3.03 million, and Asset Finance Lending at A$27.93 million.

Estimated Discount To Fair Value: 45.7%

Resimac Group is trading at A$1.18, significantly below its estimated fair value of A$2.16, highlighting potential undervaluation based on cash flows. The company projects robust revenue growth of 32.6% annually over the next three years, outpacing the Australian market's 7.8%. However, its dividend yield of 5.96% is not well covered by free cash flows and debt coverage by operating cash flow remains inadequate despite a recent share buyback worth A$4.07 million.

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

Regal Partners (ASX:RPL)

Overview: Regal Partners Limited is a privately owned hedge fund sponsor with a market cap of A$1.13 billion.

Operations: The company generates revenue of A$245.45 million from its investment management services.

Estimated Discount To Fair Value: 36.8%

Regal Partners is trading at A$3.08, well below its estimated fair value of A$4.87, suggesting undervaluation based on cash flows. Despite this, net profit margins have declined from 28.1% to 17.2% over the past year, and significant insider selling has occurred recently. Revenue growth is forecasted at 15.9% annually, outpacing the market's 7.8%, while earnings are expected to grow significantly by 31.5% per year despite a reduced dividend yield of 5.19%.

• Our expertly prepared growth report on Regal Partners implies its future financial outlook may be stronger than recent results.
• Dive into the specifics of Regal Partners here with our thorough financial health report.

Seize The Opportunity

• Embark on your investment journey to our 30 Undervalued ASX Stocks Based On Cash Flows selection here.
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Seeking Other Investments?

• 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.

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