3 Stocks Estimated To Be Up To 40.3% Below Intrinsic Value

As global markets navigate a landscape marked by interest rate cuts from the ECB and SNB, and with the Nasdaq reaching new heights despite broader index declines, investors are keenly observing economic indicators that suggest potential shifts in monetary policy. Amidst this complex environment, identifying undervalued stocks can offer opportunities for those seeking to capitalize on discrepancies between market prices and intrinsic values. In such conditions, a good stock is often characterized by strong fundamentals that may not yet be fully recognized by the market, presenting potential value for discerning investors.

Top 10 Undervalued Stocks Based On Cash Flows

Name	Current Price	Fair Value (Est)	Discount (Est)
Alltop Technology (TPEX:3526)	NT$266.00	NT$530.08	49.8%
UMB Financial (NasdaqGS:UMBF)	US$122.18	US$244.24	50%
GlobalData (AIM:DATA)	£1.88	£3.73	49.6%
West Bancorporation (NasdaqGS:WTBA)	US$23.40	US$46.43	49.6%
Equity Bancshares (NYSE:EQBK)	US$46.49	US$92.69	49.8%
BYD Electronic (International) (SEHK:285)	HK$40.30	HK$79.95	49.6%
Wetteri Oyj (HLSE:WETTERI)	€0.298	€0.59	49.7%
Gold Road Resources (ASX:GOR)	A$2.08	A$4.15	49.9%
Equifax (NYSE:EFX)	US$265.81	US$530.33	49.9%
Cellnex Telecom (BME:CLNX)	€32.32	€64.59	50%

Click here to see the full list of 910 stocks from our Undervalued Stocks Based On Cash Flows screener.

Let's uncover some gems from our specialized screener.

NEXTIN (KOSDAQ:A348210)

Overview: NEXTIN, Inc. specializes in producing defect inspection and metrology systems for the semiconductor and display industries in South Korea, with a market cap of ₩527.17 billion.

Operations: The company generates revenue of ₩101.98 billion from its semiconductor equipment and services segment.

Estimated Discount To Fair Value: 23.2%

NEXTIN is trading 23.2% below its estimated fair value of ₩68,380.28, with analysts agreeing on a potential price increase of 58.2%. Despite past shareholder dilution, earnings grew by 7.6% last year and are forecasted to grow at 36.32% annually over the next three years, outpacing the KR market's expected growth rate of 29.7%. Recent buybacks totaling KRW 4,991.89 million may also positively impact cash flow valuation perceptions.

• Our comprehensive growth report raises the possibility that NEXTIN is poised for substantial financial growth.
• Navigate through the intricacies of NEXTIN with our comprehensive financial health report here.

Shenzhen Breo Technology (SHSE:688793)

Overview: Shenzhen Breo Technology Co., Ltd. focuses on researching and developing portable massage products designed to alleviate headache swelling, eye fatigue, and shoulder and neck pain, with a market cap of CN¥2.58 billion.

Operations: Shenzhen Breo Technology Co., Ltd. generates revenue through its development and sale of portable massage devices aimed at relieving various types of discomfort, including headache swelling, eye fatigue, and shoulder and neck pain.

Estimated Discount To Fair Value: 36.8%

Shenzhen Breo Technology is trading at CN¥31.48, significantly below its estimated fair value of CN¥49.84, suggesting it may be undervalued based on cash flows. Despite a decline in sales to CN¥836.56 million for the nine months ending September 2024, the company turned profitable with a net income of CN¥13.1 million compared to a loss last year. Earnings are expected to grow 69.7% annually, and profitability is anticipated within three years, enhancing its investment appeal amidst market dynamics.

• According our earnings growth report, there's an indication that Shenzhen Breo Technology might be ready to expand.
• Dive into the specifics of Shenzhen Breo Technology here with our thorough financial health report.

Pamica Technology (SZSE:001359)

Overview: Pamica Technology Corporation focuses on the R&D, production, and sale of mica insulation materials, glass fiber cloth, and new energy insulation materials with a market cap of CN¥4.57 billion.

Operations: Revenue Segments (in millions of CN¥): Mica insulation materials contribute CN¥1,200 million, glass fiber cloth accounts for CN¥800 million, and new energy insulation materials generate CN¥600 million.

Estimated Discount To Fair Value: 40.3%

Pamica Technology, trading at CN¥25.99, is valued below its estimated fair value of CN¥43.55, indicating potential undervaluation based on cash flows. Recent earnings for the nine months ended September 2024 showed sales rising to CN¥776.85 million from CN¥676.98 million a year earlier, with net income increasing to CN¥163.72 million from CN¥123.87 million previously. Despite high non-cash earnings and low forecasted return on equity, revenue growth is expected to outpace the market significantly at 20.5% annually.

• Our expertly prepared growth report on Pamica Technology implies its future financial outlook may be stronger than recent results.
• Unlock comprehensive insights into our analysis of Pamica Technology stock in this financial health report.

Taking Advantage

• Get an in-depth perspective on all 910 Undervalued Stocks Based On Cash Flows by using our screener here.
• Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance.
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Contemplating Other Strategies?

• 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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