Global Stocks Estimated To Be Trading Below Fair Value By Up To 44.6%

In a climate of economic uncertainty and inflation concerns, global markets have been experiencing volatility, with major indices such as the S&P 500 and Nasdaq Composite seeing significant declines. Amid these challenges, investors often seek opportunities in undervalued stocks that may offer potential for growth when market conditions stabilize. Identifying stocks trading below their fair value can be particularly appealing during times of market stress, as they might provide a margin of safety and potential upside once broader economic conditions improve.

Top 10 Undervalued Stocks Based On Cash Flows

Click here to see the full list of 501 stocks from our Undervalued Global Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results.

Sahara International Petrochemical (SASE:2310)

Overview: Sahara International Petrochemical Company operates industrial projects in the chemical and petrochemical sectors in Saudi Arabia, with a market cap of SAR15.08 billion.

Operations: The company's revenue segments consist of SAR2.26 billion from Polymers, SAR4.85 billion from Marketing, SAR2.22 billion from Basic Chemicals, and SAR2.15 billion from Intermediate Chemicals.

Estimated Discount To Fair Value: 44.6%

Sahara International Petrochemical is trading at SAR 20.8, significantly below its estimated fair value of SAR 37.55, suggesting it may be undervalued based on cash flows. Despite a decline in net income to SAR 426.14 million for 2024, earnings are expected to grow significantly at over 20% annually in the coming years. However, profit margins have decreased and dividends are not well covered by earnings or free cash flows.

• Our growth report here indicates Sahara International Petrochemical may be poised for an improving outlook.
• Click here and access our complete balance sheet health report to understand the dynamics of Sahara International Petrochemical.

NBTM New Materials Group (SHSE:600114)

Overview: NBTM New Materials Group Co., Ltd. is engaged in the production and sale of powder metallurgy mechanical parts globally, with a market cap of CN¥12.63 billion.

Operations: The company generates revenue from the production and sale of powder metallurgy mechanical parts across international markets.

Estimated Discount To Fair Value: 33%

NBTM New Materials Group is trading at CNY 20.83, significantly below its estimated fair value of CNY 31.08, indicating potential undervaluation based on cash flows. Recent earnings showed a substantial increase in net income to CNY 397 million for 2024, with earnings expected to grow over 26% annually. However, dividends are not well covered by free cash flows and the company's debt coverage by operating cash flow is weak.

• Our earnings growth report unveils the potential for significant increases in NBTM New Materials Group's future results.
• Delve into the full analysis health report here for a deeper understanding of NBTM New Materials Group.

Delton Technology (Guangzhou) (SZSE:001389)

Overview: Delton Technology (Guangzhou) Inc. is involved in the research, development, production, and sale of printed circuit boards both in China and internationally, with a market cap of CN¥21.41 billion.

Operations: The company generates revenue through the research, development, production, and sale of printed circuit boards domestically and abroad.

Estimated Discount To Fair Value: 19.6%

Delton Technology (Guangzhou) is trading at CN¥55.39, below its fair value estimate of CN¥68.86, reflecting potential undervaluation based on cash flows. Recent earnings reported a rise in net income to CN¥676.1 million for 2024 from CN¥414.69 million the previous year, with revenue growing to CN¥3.73 billion from CN¥2.68 billion. Despite high volatility in share price recently, earnings are forecasted to grow significantly faster than the market rate over the next three years.

• The analysis detailed in our Delton Technology (Guangzhou) growth report hints at robust future financial performance.
• Get an in-depth perspective on Delton Technology (Guangzhou)'s balance sheet by reading our health report here.

Next Steps

• Dive into all 501 of the Undervalued Global Stocks Based On Cash Flows we have identified here.
• 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.
• Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets.

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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