Stock Analysis

3 Stocks Including Cloudberry Clean Energy Estimated To Be Below Intrinsic Value

OB:CLOUD
Source: Shutterstock

In a week marked by a divergence in major U.S. stock indexes, with growth stocks significantly outperforming value stocks, investors are navigating a complex landscape of mixed economic signals and geopolitical developments. As global markets continue to experience volatility and sector performance remains dispersed, identifying undervalued stocks becomes crucial for those looking to capitalize on potential market inefficiencies. In such an environment, assessing intrinsic value against current market prices can help investors uncover opportunities that might be overlooked amid broader market movements.

Top 10 Undervalued Stocks Based On Cash Flows

NameCurrent PriceFair Value (Est)Discount (Est)
SKS Technologies Group (ASX:SKS)A$1.945A$3.8549.5%
Aguas Andinas (SNSE:AGUAS-A)CLP289.00CLP576.3449.9%
Befesa (XTRA:BFSA)€22.32€44.5349.9%
Shanghai INT Medical Instruments (SEHK:1501)HK$27.10HK$54.0349.8%
Visional (TSE:4194)¥8535.00¥17012.4249.8%
Ingenia Communities Group (ASX:INA)A$4.62A$9.1549.5%
First Advantage (NasdaqGS:FA)US$19.81US$39.4949.8%
DoubleVerify Holdings (NYSE:DV)US$20.77US$41.2849.7%
Nyab (OM:NYAB)SEK5.20SEK10.2949.5%
Carter Bankshares (NasdaqGS:CARE)US$19.30US$38.2849.6%

Click here to see the full list of 901 stocks from our Undervalued Stocks Based On Cash Flows screener.

Let's take a closer look at a couple of our picks from the screened companies.

Cloudberry Clean Energy (OB:CLOUD)

Overview: Cloudberry Clean Energy ASA is a renewable energy company with a market cap of NOK3.46 billion.

Operations: The company's revenue segments include Operations at NOK60 million, Production at NOK572 million, and Development at NOK27 million.

Estimated Discount To Fair Value: 19.4%

Cloudberry Clean Energy is trading 19.4% below its estimated fair value of NOK14.89, suggesting potential undervaluation based on cash flows. Despite a forecasted revenue growth of 14.5% per year, which outpaces the Norwegian market, the company's Return on Equity is expected to remain low at 0.2%. Recent earnings showed improved net loss figures and increased power production year-to-date, indicating positive operational momentum despite lower quarterly sales compared to last year.

OB:CLOUD Discounted Cash Flow as at Dec 2024
OB:CLOUD Discounted Cash Flow as at Dec 2024

SolaX Power Network Technology (Zhejiang) (SHSE:688717)

Overview: SolaX Power Network Technology (Zhejiang) Co., Ltd. (SHSE:688717) operates in the renewable energy sector, focusing on the development and production of solar power products, with a market cap of CN¥9.01 billion.

Operations: The company generates revenue of CN¥2.87 billion from its Electronic Components & Parts segment.

Estimated Discount To Fair Value: 11.3%

SolaX Power Network Technology (Zhejiang) is trading 11.3% below its estimated fair value of CNY 63.49, reflecting potential undervaluation based on cash flows. Despite a significant drop in sales and net income for the nine months ending September 2024, earnings are projected to grow significantly at 54.1% annually, outpacing the Chinese market's growth rate. However, profit margins have decreased from last year, and share price volatility remains high over recent months.

SHSE:688717 Discounted Cash Flow as at Dec 2024
SHSE:688717 Discounted Cash Flow as at Dec 2024

PARK24 (TSE:4666)

Overview: PARK24 Co., Ltd. operates and manages parking facilities both in Japan and internationally, with a market cap of ¥307.58 billion.

Operations: The company's revenue is derived from three main segments: the Mobility Business generating ¥107.36 million, Parking Lot Business Japan contributing ¥178.06 million, and Parking Lot Business Overseas accounting for ¥79.23 million.

Estimated Discount To Fair Value: 26.3%

PARK24 is trading at ¥1,803, 26.3% below its estimated fair value of ¥2,447.02, suggesting undervaluation based on cash flows. Earnings are projected to grow at 16.35% annually, surpassing the Japanese market's growth rate of 7.9%. Despite high debt levels and slower revenue growth forecasts of 5.7%, the company has shown a profit increase of 9.4% over the past year and anticipates strong future returns on equity at 30%.

TSE:4666 Discounted Cash Flow as at Dec 2024
TSE:4666 Discounted Cash Flow as at Dec 2024

Seize The Opportunity

Want To Explore Some Alternatives?

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.

New: AI Stock Screener & Alerts

Our new AI Stock Screener scans the market every day to uncover opportunities.

• Dividend Powerhouses (3%+ Yield)
• Undervalued Small Caps with Insider Buying
• High growth Tech and AI Companies

Or build your own from over 50 metrics.

Explore Now for Free

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com