3 Stocks Estimated To Be 18.2% To 33.2% Below Intrinsic Value

In a week marked by mixed economic signals and volatile market movements, global indices have experienced fluctuations, with major U.S. indexes ending mostly lower despite some reaching record intraday highs earlier. Amid this backdrop, investors are increasingly focusing on value opportunities as growth stocks lag behind their value counterparts due to cautious earnings reports from tech giants. In such an environment, identifying undervalued stocks can be crucial for investors looking to capitalize on potential market inefficiencies. This article will explore three stocks currently estimated to be 18.2% to 33.2% below their intrinsic value, providing insights into potential investment opportunities in today's complex market landscape.

Top 10 Undervalued Stocks Based On Cash Flows

Name	Current Price	Fair Value (Est)	Discount (Est)
Proya CosmeticsLtd (SHSE:603605)	CN¥96.90	CN¥194.21	50.1%
Nordic Waterproofing Holding (OM:NWG)	SEK175.60	SEK349.53	49.8%
Western Alliance Bancorporation (NYSE:WAL)	US$84.63	US$168.45	49.8%
IMAGICA GROUP (TSE:6879)	¥479.00	¥944.50	49.3%
Elica (BIT:ELC)	€1.725	€3.44	49.8%
On the Beach Group (LSE:OTB)	£1.534	£3.07	50%
North Electro-OpticLtd (SHSE:600184)	CN¥11.37	CN¥22.85	50.3%
KeePer Technical Laboratory (TSE:6036)	¥3920.00	¥7817.96	49.9%
Fine Foods & Pharmaceuticals N.T.M (BIT:FF)	€8.36	€16.67	49.8%
Energy One (ASX:EOL)	A$5.60	A$10.94	48.8%

Click here to see the full list of 963 stocks from our Undervalued Stocks Based On Cash Flows screener.

Let's explore several standout options from the results in the screener.

Hanwha Aerospace (KOSE:A012450)

Overview: Hanwha Aerospace Co., Ltd. is involved in the development, production, and maintenance of aircraft engines globally, with a market cap of ₩16.48 trillion.

Operations: The company's revenue segments include the Defense Sector at ₩6.35 trillion, Security Sector at ₩2.08 trillion, Aviation Sector at ₩1.85 trillion, ICT Sector at ₩687.52 million, and Industrial Equipment Sector at ₩480.36 million.

Estimated Discount To Fair Value: 18.2%

Hanwha Aerospace is trading at ₩385,000, approximately 18.2% below its estimated fair value of ₩470,560.78. Earnings are expected to grow significantly at 38.9% annually over the next three years, surpassing the Korean market's growth rate of 29.5%. However, revenue growth is forecasted at a modest 8.7%, trailing behind the market average of 10%. Despite improved earnings prospects, profit margins have declined from last year and debt coverage by operating cash flow remains inadequate.

• Our earnings growth report unveils the potential for significant increases in Hanwha Aerospace's future results.
• Unlock comprehensive insights into our analysis of Hanwha Aerospace stock in this financial health report.

Eastroc Beverage(Group) (SHSE:605499)

Overview: Eastroc Beverage(Group) Co., Ltd. manufactures beverages in China and has a market cap of CN¥113.79 billion.

Operations: The company generates revenue of CN¥15.18 billion from the production, sales, and wholesale of beverages and pre-packaged foods in China.

Estimated Discount To Fair Value: 33.2%

Eastroc Beverage(Group) is trading at CNY 217.36, significantly below its estimated fair value of CNY 325.2, reflecting a potential undervaluation based on cash flow analysis. Recent earnings show robust growth, with net income rising to CNY 2,707.39 million for the first nine months of 2024 from CNY 1,655.6 million a year ago. While earnings are expected to grow at an annual rate of approximately 23%, this lags behind the broader Chinese market's anticipated growth rate of 26.1%.

• The analysis detailed in our Eastroc Beverage(Group) growth report hints at robust future financial performance.
• Click here and access our complete balance sheet health report to understand the dynamics of Eastroc Beverage(Group).

Wuxi Lead Intelligent EquipmentLTD (SZSE:300450)

Overview: Wuxi Lead Intelligent Equipment Co., Ltd. develops, manufactures, and sells intelligent equipment in China with a market cap of CN¥29.82 billion.

Operations: Wuxi Lead Intelligent Equipment Co., Ltd. generates its revenue through the development, manufacturing, and sale of intelligent equipment in China.

Estimated Discount To Fair Value: 21.9%

Wuxi Lead Intelligent Equipment LTD is trading at CN¥19.72, below its estimated fair value of CN¥25.25, suggesting undervaluation based on cash flow analysis. Despite a challenging year with net income dropping to CNY 608.48 million from CNY 2,323.61 million previously, earnings are projected to grow significantly at 69.7% annually over the next three years, outpacing the Chinese market's growth rate of 26.1%. However, profit margins remain compressed compared to last year.

• Our comprehensive growth report raises the possibility that Wuxi Lead Intelligent EquipmentLTD is poised for substantial financial growth.
• Delve into the full analysis health report here for a deeper understanding of Wuxi Lead Intelligent EquipmentLTD.

Make It Happen

• Explore the 963 names from our Undervalued Stocks Based On Cash Flows screener here.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Ready For A Different Approach?

• 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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