3 Stocks That May Be Trading Below Their Estimated Intrinsic Value
Reviewed by Simply Wall St
As global markets experience a resurgence, with major U.S. stock indexes rebounding and value stocks outperforming growth shares, investors are increasingly attentive to the potential of undervalued stocks. In this environment of cooling inflation and strong earnings reports, identifying stocks that may be trading below their estimated intrinsic value can offer opportunities for those looking to capitalize on market inefficiencies.
Top 10 Undervalued Stocks Based On Cash Flows
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Livero (TSE:9245) | ¥1539.00 | ¥3105.12 | 50.4% |
| Strike CompanyLimited (TSE:6196) | ¥3560.00 | ¥7182.28 | 50.4% |
| Solum (KOSE:A248070) | ₩19000.00 | ₩37191.21 | 48.9% |
| North Electro-OpticLtd (SHSE:600184) | CN¥10.72 | CN¥21.42 | 49.9% |
| EuroGroup Laminations (BIT:EGLA) | €2.54 | €5.06 | 49.8% |
| ASMPT (SEHK:522) | HK$75.15 | HK$150.17 | 50% |
| Shinko Electric Industries (TSE:6967) | ¥5851.00 | ¥11653.40 | 49.8% |
| Equifax (NYSE:EFX) | US$268.88 | US$535.98 | 49.8% |
| BATM Advanced Communications (LSE:BVC) | £0.19 | £0.38 | 49.8% |
| RXO (NYSE:RXO) | US$26.19 | US$52.36 | 50% |
Below we spotlight a couple of our favorites from our exclusive screener.
Ningbo Deye Technology Group (SHSE:605117)
Overview: Ningbo Deye Technology Group Co., Ltd. specializes in the production and sales of heat exchangers, inverters, and dehumidifiers across China, the United Kingdom, the United States, Germany, India, and other international markets with a market cap of CN¥57.16 billion.
Operations: The company's revenue is derived from its production and sales of heat exchangers, inverters, and dehumidifiers across various international markets including China, the United Kingdom, the United States, Germany, and India.
Estimated Discount To Fair Value: 31.3%
Ningbo Deye Technology Group is trading at CN¥87.55, significantly below its estimated fair value of CN¥127.38, indicating potential undervaluation based on cash flows. The company's earnings are projected to grow substantially at 27.6% annually over the next three years, outpacing the Chinese market average. Recent financials show robust performance with a net income increase to CN¥2.24 billion from CN¥1.57 billion and revenue rising to CN¥8.02 billion from CN¥6.33 billion year-over-year.
- Our comprehensive growth report raises the possibility that Ningbo Deye Technology Group is poised for substantial financial growth.
- Get an in-depth perspective on Ningbo Deye Technology Group's balance sheet by reading our health report here.
SIGMAXYZ Holdings (TSE:6088)
Overview: SIGMAXYZ Holdings Inc., with a market cap of ¥72.05 billion, operates in Japan through its subsidiaries, focusing on consulting, investment, and M&A advisory services.
Operations: The company's revenue primarily comes from its consulting business, generating ¥24.30 billion, with an additional contribution of ¥184.92 million from its investment segment.
Estimated Discount To Fair Value: 38%
SIGMAXYZ Holdings is trading at ¥901, well below its estimated fair value of ¥1,454.17, highlighting potential undervaluation based on cash flows. The company's earnings are expected to grow annually by 15.3%, surpassing the Japanese market average of 8%. Recent financial guidance projects a profit of ¥4.1 billion for the fiscal year ending March 2025. Despite high share price volatility and a dividend reduction to JPY 19 per share, growth prospects remain strong.
- According our earnings growth report, there's an indication that SIGMAXYZ Holdings might be ready to expand.
- Delve into the full analysis health report here for a deeper understanding of SIGMAXYZ Holdings.
Kinaxis (TSX:KXS)
Overview: Kinaxis Inc. offers cloud-based subscription software for supply chain operations across the United States, Europe, Asia, and Canada, with a market cap of CA$4.96 billion.
Operations: The company generates revenue primarily from its Software & Programming segment, amounting to $471.17 million.
Estimated Discount To Fair Value: 47.7%
Kinaxis is trading at CA$176.78, significantly below its estimated fair value of CA$338.24, suggesting potential undervaluation based on cash flows. The company's earnings are forecast to grow substantially at 42.9% annually, outpacing the Canadian market average of 15.5%. Recent partnerships with NTT DATA Japan and Octapharma bolster its supply chain solutions footprint, while leadership changes and a share repurchase program could influence future performance dynamics.
- Our growth report here indicates Kinaxis may be poised for an improving outlook.
- Dive into the specifics of Kinaxis here with our thorough financial health report.
Seize The Opportunity
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Searching for a Fresh Perspective?
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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.
Valuation is complex, but we're here to simplify it.
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About TSX:KXS
Kinaxis
Provides cloud-based subscription software for supply chain operations in the United States, Europe, Asia, and Canada.
Flawless balance sheet with reasonable growth potential.
