The ASX200 showed resilience today, closing in the green as investors reacted positively to encouraging inflation data that could lead to an interest rate cut in August. In this environment of sectoral strength and selective challenges, identifying stocks trading below their intrinsic value can offer potential opportunities for those looking to capitalize on market inefficiencies.
Top 10 Undervalued Stocks Based On Cash Flows In Australia
Name | Current Price | Fair Value (Est) | Discount (Est) |
Superloop (ASX:SLC) | A$3.23 | A$6.38 | 49.4% |
PolyNovo (ASX:PNV) | A$1.32 | A$2.58 | 48.8% |
PointsBet Holdings (ASX:PBH) | A$1.25 | A$2.09 | 40.3% |
Medical Developments International (ASX:MVP) | A$0.685 | A$1.33 | 48.7% |
Flight Centre Travel Group (ASX:FLT) | A$12.88 | A$20.83 | 38.2% |
Fenix Resources (ASX:FEX) | A$0.30 | A$0.49 | 38.8% |
Domino's Pizza Enterprises (ASX:DMP) | A$18.56 | A$29.79 | 37.7% |
Collins Foods (ASX:CKF) | A$9.32 | A$15.87 | 41.3% |
Charter Hall Group (ASX:CHC) | A$20.21 | A$35.43 | 43% |
Advanced Braking Technology (ASX:ABV) | A$0.089 | A$0.16 | 45.3% |
Below we spotlight a couple of our favorites from our exclusive screener.
Catalyst Metals (ASX:CYL)
Overview: Catalyst Metals Limited is engaged in the exploration and evaluation of mineral properties in Australia, with a market cap of A$1.28 billion.
Operations: The company's revenue segments include A$93.77 million from Tasmania and A$315.38 million from Western Australia.
Estimated Discount To Fair Value: 31.6%
Catalyst Metals is trading at A$5.07, below its estimated fair value of A$7.41, indicating potential undervaluation based on cash flows. The company recently became profitable and is expected to see significant earnings growth of 53.7% annually, outpacing the Australian market's 11%. Revenue is projected to grow at 21.7% per year, surpassing the market's rate of 5.6%. Catalyst completed a A$150 million equity offering in May 2025, enhancing its capital structure.
- Our earnings growth report unveils the potential for significant increases in Catalyst Metals' future results.
- Get an in-depth perspective on Catalyst Metals' balance sheet by reading our health report here.
Superloop (ASX:SLC)
Overview: Superloop Limited, with a market cap of A$1.65 billion, operates as a telecommunications and internet service provider in Australia through its subsidiaries.
Operations: The company's revenue segments are comprised of Business at A$103.63 million, Consumer at A$316.02 million, and Wholesale at A$60.05 million.
Estimated Discount To Fair Value: 49.4%
Superloop, trading at A$3.23, is significantly undervalued with an estimated fair value of A$6.38. Despite a recent loss of A$7.8 million for the half-year ending December 31, Superloop's cash flows are robust following major capital investments and improved by 58.4% compared to the previous year. Revenue growth is forecast at 13.2% annually, surpassing market averages, with profitability expected within three years as it expands in new housing developments and seeks strategic acquisitions.
- Insights from our recent growth report point to a promising forecast for Superloop's business outlook.
- Click here and access our complete balance sheet health report to understand the dynamics of Superloop.
Technology One (ASX:TNE)
Overview: Technology One Limited develops, markets, sells, implements, and supports integrated enterprise business software solutions in Australia and internationally with a market cap of A$13.19 billion.
Operations: The company's revenue segments include Software at A$378.25 million, Corporate at A$90.55 million, and Consulting at A$82.87 million.
Estimated Discount To Fair Value: 23.3%
Technology One is trading at A$40.3, significantly undervalued compared to its estimated fair value of A$52.56. The company reported a revenue increase to A$285.69 million and net income growth to A$62.97 million for the half year ending March 31, 2025, reflecting strong cash flow performance. Earnings are forecasted to grow at 16.7% annually, outpacing the broader Australian market's growth expectations, with a high projected return on equity of 35.2% in three years.
- The growth report we've compiled suggests that Technology One's future prospects could be on the up.
- Take a closer look at Technology One's balance sheet health here in our report.
Turning Ideas Into Actions
- Click here to access our complete index of 30 Undervalued ASX Stocks Based On Cash Flows.
- Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
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Curious About Other Options?
- 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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