Stock Analysis

3 Stocks Estimated To Be Trading Below Fair Value In November 2024

Published

As global markets react to the recent U.S. election results, with major indices reaching record highs driven by expectations of economic growth and regulatory changes, investors are keenly assessing opportunities amidst these shifting dynamics. In this context, identifying stocks that may be trading below their fair value becomes particularly intriguing, as they offer potential for growth in a market buoyed by optimism and policy shifts.

Top 10 Undervalued Stocks Based On Cash Flows

NameCurrent PriceFair Value (Est)Discount (Est)
Micro-Star International (TWSE:2377)NT$184.00NT$368.9950.1%
Anhui Huaheng Biotechnology (SHSE:688639)CN¥37.84CN¥71.6547.2%
Jetpak Top Holding (OM:JETPAK)SEK106.00SEK211.8150%
Dynavox Group (OM:DYVOX)SEK66.50SEK132.8449.9%
Redcentric (AIM:RCN)£1.1625£2.3250%
Proficient Auto Logistics (NasdaqGS:PAL)US$10.00US$19.9249.8%
Royal Plus (SET:PLUS)THB5.45THB10.8849.9%
Dometic Group (OM:DOM)SEK61.15SEK121.7249.8%
Fine Foods & Pharmaceuticals N.T.M (BIT:FF)€8.14€16.2549.9%
St. James's Place (LSE:STJ)£8.275£16.4649.7%

Click here to see the full list of 899 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.

Hui Lyu Ecological Technology GroupsLtd (SZSE:001267)

Overview: Hui Lyu Ecological Technology Groups Co., Ltd. operates in the ecological technology sector and has a market cap of CN¥6.03 billion.

Operations: Unfortunately, the provided text for revenue segments is incomplete and does not contain specific information about the company's revenue breakdown. If you have additional details or a complete list of revenue segments, please provide it so I can assist you further.

Estimated Discount To Fair Value: 22%

Hui Lyu Ecological Technology Groups Ltd. is trading at CN¥7.92, which is 22% below its estimated fair value of CN¥10.15, suggesting potential undervaluation based on cash flows. Despite a low forecasted return on equity (10.1%), the company's earnings are projected to grow significantly at 41.5% annually over the next three years, outpacing the Chinese market's growth rate of 26.2%. Recent earnings showed slight improvement in net income despite declining sales.

SZSE:001267 Discounted Cash Flow as at Nov 2024

AcrobiosystemsLtd (SZSE:301080)

Overview: Acrobiosystems Co., Ltd. develops and manufactures recombinant proteins, antibodies, and other biological reagents for pharmaceutical and biotechnology companies as well as scientific research institutions, with a market cap of CN¥5.24 billion.

Operations: The company generates revenue primarily from Research and Experimental Development, amounting to CN¥583.70 million.

Estimated Discount To Fair Value: 21.9%

Acrobiosystems Ltd. is trading at CN¥46.46, approximately 21.9% below its estimated fair value of CN¥59.51, indicating potential undervaluation based on cash flows. Despite a decline in net income to CNY 83.49 million for the recent nine months, earnings are expected to grow significantly at 30.47% annually over the next three years, surpassing market growth rates. However, profit margins have decreased from last year’s levels and the dividend remains poorly covered by current earnings or free cash flows.

SZSE:301080 Discounted Cash Flow as at Nov 2024

Suzhou Alton Electrical & Mechanical Industry (SZSE:301187)

Overview: Suzhou Alton Electrical & Mechanical Industry Co., Ltd. operates in the electrical and mechanical sector, with a market capitalization of CN¥4.99 billion.

Operations: Suzhou Alton Electrical & Mechanical Industry Co., Ltd. generates its revenue from various segments within the electrical and mechanical sector.

Estimated Discount To Fair Value: 24.2%

Suzhou Alton Electrical & Mechanical Industry is trading at CN¥32.78, over 20% below its estimated fair value of CN¥43.26, highlighting potential undervaluation based on cash flows. Recent earnings for the nine months show revenue growth to CN¥1.31 billion from CN¥836.6 million a year ago, with net income rising to CN¥184.58 million from CN¥124.75 million last year. However, dividends are not well covered by earnings or free cash flows, posing a potential risk.

SZSE:301187 Discounted Cash Flow as at Nov 2024

Summing It All Up

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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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