Stock Analysis

Examining Rising Nonferrous Metals ShareLtd And 2 Other Stocks That May Be Priced Below Intrinsic Value

TSX:CMG
Source: Shutterstock

As global markets continue to reach record highs, driven by domestic policy shifts and geopolitical developments, investors are keenly observing the implications for various sectors. Amidst this backdrop of economic activity and fluctuating indices, identifying undervalued stocks becomes crucial as they may offer potential opportunities when priced below their intrinsic value.

Top 10 Undervalued Stocks Based On Cash Flows

NameCurrent PriceFair Value (Est)Discount (Est)
Shandong Bailong Chuangyuan Bio-Tech (SHSE:605016)CN¥16.64CN¥33.1649.8%
Türkiye Sise Ve Cam Fabrikalari (IBSE:SISE)TRY41.22TRY82.1549.8%
Pluk Phak Praw Rak Mae (SET:OKJ)THB15.50THB30.8649.8%
EnomotoLtd (TSE:6928)¥1455.00¥2892.6649.7%
Enento Group Oyj (HLSE:ENENTO)€18.02€35.9149.8%
Fine Foods & Pharmaceuticals N.T.M (BIT:FF)€7.84€15.6049.7%
First Advantage (NasdaqGS:FA)US$19.37US$38.6349.9%
AeroVironment (NasdaqGS:AVAV)US$203.19US$404.3449.7%
Energy One (ASX:EOL)A$5.30A$10.5649.8%
Sands China (SEHK:1928)HK$20.40HK$40.6649.8%

Click here to see the full list of 890 stocks from our Undervalued Stocks Based On Cash Flows screener.

Here's a peek at a few of the choices from the screener.

Rising Nonferrous Metals ShareLtd (SHSE:600259)

Overview: Rising Nonferrous Metals Share Co., Ltd. operates in China, focusing on the mining, smelting separation, deep processing, and trading of rare earth and non-ferrous metals, with a market cap of CN¥10.53 billion.

Operations: The company's revenue segments include mining, smelting separation, deep processing, and trading of rare earth and non-ferrous metals in China.

Estimated Discount To Fair Value: 24.6%

Rising Nonferrous Metals Share Ltd. is trading at CNY 31.04, significantly below its estimated fair value of CNY 41.16, suggesting an undervaluation based on cash flows. Despite recent financial setbacks with a net loss of CNY 275.52 million for the nine months ending September 2024, earnings are forecast to grow substantially by over 120% annually, and revenue is expected to increase at a robust rate of 27.1% per year, outpacing market averages.

SHSE:600259 Discounted Cash Flow as at Dec 2024
SHSE:600259 Discounted Cash Flow as at Dec 2024

Beijing LeiKe Defense Technology (SZSE:002413)

Overview: Beijing LeiKe Defense Technology Co., Ltd. operates in the defense technology sector and has a market capitalization of approximately CN¥6.40 billion.

Operations: The company's revenue primarily comes from the Computer, Communications and Other Electronic Equipment Manufacturing segment, which generated CN¥1.18 billion.

Estimated Discount To Fair Value: 45.7%

Beijing LeiKe Defense Technology is trading at CN¥4.91, well below its fair value estimate of CN¥9.04, highlighting its potential undervaluation based on cash flows. Despite a net loss of CN¥134.45 million for the nine months ending September 2024, earnings are expected to grow over 105% annually with revenue increasing by 21.9% per year, outpacing the Chinese market's growth rate of 13.9%. Recent board changes may influence future governance strategies.

SZSE:002413 Discounted Cash Flow as at Dec 2024
SZSE:002413 Discounted Cash Flow as at Dec 2024

Computer Modelling Group (TSX:CMG)

Overview: Computer Modelling Group Ltd. is a software and consulting technology company that develops and licenses reservoir simulation and seismic interpretation software, with a market cap of CA$912.92 million.

Operations: The company generates revenue from its reservoir simulation software segment, contributing CA$90.55 million, and its seismic interpretation software segment, which adds CA$34.74 million.

Estimated Discount To Fair Value: 46.6%

Computer Modelling Group, trading at CA$11.14, is significantly undervalued with a fair value estimate of CA$20.85. Despite recent earnings declines, the company's revenue and profit are projected to grow faster than the Canadian market at 13.3% and 26.1% annually, respectively. Collaborations with NVIDIA for enhanced simulation solutions support its energy transition initiatives like carbon capture and storage (CCS), potentially bolstering long-term growth prospects despite an unstable dividend track record and recent insider selling activities.

TSX:CMG Discounted Cash Flow as at Dec 2024
TSX:CMG Discounted Cash Flow as at Dec 2024

Make It Happen

Curious About Other Options?

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