3 Stocks Possibly Priced Below Their Estimated Value In November 2024

November 05, 2024

As global markets navigate a tumultuous period marked by mixed economic signals and cautious corporate earnings, investors are keenly observing potential opportunities in undervalued stocks. With major indices experiencing fluctuations amid a busy earnings season and economic uncertainties, identifying stocks that may be priced below their estimated value could offer strategic entry points for those looking to capitalize on market inefficiencies.

Top 10 Undervalued Stocks Based On Cash Flows

Name	Current Price	Fair Value (Est)	Discount (Est)
Proya CosmeticsLtd (SHSE:603605)	CN¥97.24	CN¥194.24	49.9%
Elica (BIT:ELC)	€1.73	€3.44	49.7%
North Electro-OpticLtd (SHSE:600184)	CN¥11.45	CN¥22.89	50%
Ingenia Communities Group (ASX:INA)	A$4.70	A$9.43	50.2%
Cosmax (KOSE:A192820)	₩157800.00	₩315109.78	49.9%
KeePer Technical Laboratory (TSE:6036)	¥3950.00	¥7853.37	49.7%
EVERTEC (NYSE:EVTC)	US$33.02	US$65.79	49.8%
Laboratorio Reig Jofre (BME:RJF)	€2.90	€5.77	49.7%
Open Lending (NasdaqGM:LPRO)	US$6.14	US$12.21	49.7%
Energy One (ASX:EOL)	A$5.56	A$11.06	49.7%

Click here to see the full list of 956 stocks from our Undervalued Stocks Based On Cash Flows screener.

Let's dive into some prime choices out of the screener.

Hyosung Heavy Industries (KOSE:A298040)

Overview: Hyosung Heavy Industries Corporation manufactures and sells heavy electrical equipment both in South Korea and internationally, with a market cap of ₩4.13 trillion.

Operations: The company's revenue segments include Heavy Industry at ₩3.35 trillion and Construction at ₩1.78 trillion.

Estimated Discount To Fair Value: 47%

Hyosung Heavy Industries appears undervalued based on cash flows, trading at ₩450,000, significantly below its estimated fair value of ₩848,764.24. Despite debt concerns not fully covered by operating cash flow, the company shows strong potential with earnings expected to grow 36.6% annually over the next three years and a high return on equity forecast of 21.8%. Recent earnings growth of 117.9% underscores its robust financial performance amidst market conditions.

KOSE:A298040 Discounted Cash Flow as at Nov 2024

Swire Properties (SEHK:1972)

Overview: Swire Properties Limited, along with its subsidiaries, is involved in the development, ownership, and operation of mixed-use commercial properties across Hong Kong, Mainland China, the United States, and other international locations with a market cap of approximately HK$95.46 billion.

Operations: The company's revenue is primarily derived from Property Investment, which accounts for HK$14.39 billion, with additional contributions from Hotels at HK$945 million and Property Trading at HK$119 million.

Estimated Discount To Fair Value: 13.3%

Swire Properties is trading at HK$16.4, approximately 13.3% below its estimated fair value of HK$18.91, despite a decline in net income to HK$1.8 billion for H1 2024 from the previous year. The company has initiated a significant share buyback program, potentially enhancing shareholder value through improved earnings per share and net asset value per share metrics. However, profit margins have decreased significantly, and insider selling raises concerns about future performance stability amidst expected earnings growth of 25.6% annually over three years.

SEHK:1972 Discounted Cash Flow as at Nov 2024

Ningbo Jifeng Auto Parts (SHSE:603997)

Overview: Ningbo Jifeng Auto Parts Co., Ltd. is a Chinese company specializing in the manufacturing of automotive interior parts, with a market cap of CN¥17.15 billion.

Operations: The company generates revenue from the production of automotive interior components in China.

Estimated Discount To Fair Value: 49.5%

Ningbo Jifeng Auto Parts is trading at CNY 13.87, significantly below its estimated fair value of CNY 27.48, despite a net loss of CNY 531.94 million for the first nine months of 2024 compared to a profit last year. Revenue growth is expected at 17.3% annually, outpacing the broader market's forecasted growth rate and suggesting potential profitability within three years, although shareholder dilution has occurred recently.

SHSE:603997 Discounted Cash Flow as at Nov 2024

Summing It All Up

Unlock our comprehensive list of 956 Undervalued Stocks Based On Cash Flows by clicking here.
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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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