Stock Analysis

3 Stocks That May Be Trading Below Their Estimated Value In February 2025

Published

As global markets continue to navigate a complex landscape marked by rising U.S. inflation and near-record highs for major stock indexes, investors are keenly observing the interplay between economic data and policy decisions. With growth stocks outperforming value shares and inflationary pressures influencing rate expectations, identifying undervalued stocks that may offer potential value becomes increasingly significant in such an environment.

Top 10 Undervalued Stocks Based On Cash Flows

NameCurrent PriceFair Value (Est)Discount (Est)
Provident Financial Services (NYSE:PFS)US$18.48US$36.9249.9%
Hibino (TSE:2469)¥2770.00¥5502.1549.7%
Power Wind Health Industry (TWSE:8462)NT$110.50NT$220.7549.9%
Smurfit Westrock (NYSE:SW)US$55.32US$110.3249.9%
América Móvil. de (BMV:AMX B)MX$14.90MX$29.7149.9%
Com2uS (KOSDAQ:A078340)₩48250.00₩96043.4949.8%
F-Secure Oyj (HLSE:FSECURE)€1.706€3.4149.9%
AIMECHATEC (TSE:6227)¥3785.00¥7563.1550%
Likewise Group (AIM:LIKE)£0.185£0.3749.8%
EKINOPS (ENXTPA:EKI)€3.285€6.5750%

Click here to see the full list of 918 stocks from our Undervalued Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results.

Angelalign Technology (SEHK:6699)

Overview: Angelalign Technology Inc. is an investment holding company that focuses on researching, developing, designing, manufacturing, and marketing clear aligner treatment solutions in the People’s Republic of China with a market cap of approximately HK$10.03 billion.

Operations: The company's revenue primarily comes from its Dental Equipment & Supplies segment, which generated CN¥1.72 billion.

Estimated Discount To Fair Value: 17.7%

Angelalign Technology is trading at HK$60, below its estimated fair value of HK$72.93, offering potential undervaluation based on cash flows. Despite a low forecasted return on equity of 6.7% in three years, the company's earnings are expected to grow significantly at 69.6% annually, outpacing the Hong Kong market's growth rate of 11.7%. However, profit margins have declined from last year due to large one-off items impacting financial results.

SEHK:6699 Discounted Cash Flow as at Feb 2025

Jinhui Mining Incorporation (SHSE:603132)

Overview: Jinhui Mining Incorporation Limited is involved in the exploration, mining, processing, and sale of lead, zinc, silver, and other mineral resources in China with a market cap of CN¥10.93 billion.

Operations: Jinhui Mining Incorporation Limited generates revenue through its activities in the exploration, mining, processing, and sale of lead, zinc, silver, and other mineral resources within China.

Estimated Discount To Fair Value: 13.3%

Jinhui Mining Incorporation is trading at CN¥11.46, slightly below its estimated fair value of CN¥13.21, suggesting potential undervaluation based on cash flows. The company's earnings and revenue are forecast to grow significantly at 37.1% and 36.2% per year respectively, outpacing the Chinese market averages. However, the dividend yield of 3.58% is not well covered by free cash flows, and the company maintains a high level of debt which may impact financial flexibility.

SHSE:603132 Discounted Cash Flow as at Feb 2025

HangzhouS MedTech (SHSE:688581)

Overview: Hangzhou AGS MedTech Co., Ltd. focuses on the research, development, production, sale, and service of endoscopic surgery equipment and accessories in China with a market cap of approximately CN¥4.85 billion.

Operations: HangzhouS MedTech generates revenue through the development and sale of endoscopic surgery equipment and accessories within China.

Estimated Discount To Fair Value: 46.5%

HangzhouS MedTech is trading at CN¥61.39, significantly below its fair value estimate of CN¥114.84, highlighting potential undervaluation based on cash flows. The company has completed a share buyback of 401,400 shares for CNY 30.97 million, which may indicate confidence in its valuation. Revenue growth is expected to outpace the market at 26.9% annually, though earnings growth forecasts are lower than the market average at 22.3% per year.

SHSE:688581 Discounted Cash Flow as at Feb 2025

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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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