Stock Analysis

Ningxia Baofeng Energy Group And 2 More Stocks That Could Be Trading Below Estimated Value

SHSE:603171
Source: Shutterstock

As global markets navigate a complex landscape marked by geopolitical tensions, consumer spending concerns, and fluctuating economic indicators, investors are increasingly seeking opportunities in stocks that may be trading below their estimated value. In this environment, identifying undervalued stocks can offer potential for growth when market sentiment shifts positively; companies like Ningxia Baofeng Energy Group present intriguing possibilities for those looking to capitalize on such opportunities.

Top 10 Undervalued Stocks Based On Cash Flows

NameCurrent PriceFair Value (Est)Discount (Est)
Ningbo Sanxing Medical ElectricLtd (SHSE:601567)CN¥26.29CN¥52.3549.8%
MINISO Group Holding (NYSE:MNSO)US$20.68US$41.0449.6%
KG Mobilians (KOSDAQ:A046440)₩4515.00₩8963.8049.6%
Vimi Fasteners (BIT:VIM)€0.96€1.9149.8%
Power Wind Health Industry (TWSE:8462)NT$113.00NT$225.7149.9%
CD Projekt (WSE:CDR)PLN220.70PLN441.1950%
Vestas Wind Systems (CPSE:VWS)DKK102.40DKK204.5449.9%
Thunderbird Entertainment Group (TSXV:TBRD)CA$1.69CA$3.3649.6%
Sung Kwang BendLtd (KOSDAQ:A014620)₩27950.00₩55879.3550%
Sandfire Resources (ASX:SFR)A$10.58A$21.1049.9%

Click here to see the full list of 925 stocks from our Undervalued Stocks Based On Cash Flows screener.

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

Ningxia Baofeng Energy Group (SHSE:600989)

Overview: Ningxia Baofeng Energy Group Co., Ltd. is involved in the production, processing, and sale of coal mining and related products such as coking, coal tar, crude benzene, methanol, and olefin products with a market capitalization of approximately CN¥115.87 billion.

Operations: The company's revenue segments include the production, processing, and sale of coal mining, washing, coking, coal tar, crude benzene, C4 deep-processed products, methanol, and olefin products.

Estimated Discount To Fair Value: 33.7%

Ningxia Baofeng Energy Group is trading at CN¥16.2, significantly below its estimated fair value of CN¥24.44, making it undervalued based on cash flows. Earnings are forecast to grow 38.5% annually, outpacing the broader market, while revenue growth is expected at 27.5% per year. Despite a high debt level and a dividend not fully covered by free cash flows, strong profit growth prospects offer potential upside in valuation terms.

SHSE:600989 Discounted Cash Flow as at Feb 2025
SHSE:600989 Discounted Cash Flow as at Feb 2025

Servyou Software Group (SHSE:603171)

Overview: Servyou Software Group Co., Ltd., along with its subsidiaries, offers financial and tax information services in China and has a market cap of CN¥17.84 billion.

Operations: Revenue Segments (in millions of CN¥): Servyou Software Group Co., Ltd. generates its revenue primarily through the provision of financial and tax information services in China.

Estimated Discount To Fair Value: 18.7%

Servyou Software Group is trading at CN¥45.5, below its estimated fair value of CN¥55.94, indicating undervaluation based on cash flows. Revenue is projected to grow 20.8% per year, surpassing the market's growth rate, while earnings are expected to increase significantly at 57.5% annually. Despite a recent decline in profit margins and share price volatility, strong growth forecasts provide potential for increased valuation over time amid these challenges.

SHSE:603171 Discounted Cash Flow as at Feb 2025
SHSE:603171 Discounted Cash Flow as at Feb 2025

Nancal TechnologyLtd (SHSE:603859)

Overview: Nancal Technology Co., Ltd offers digital transformation solutions both in China and internationally, with a market cap of CN¥8.23 billion.

Operations: Nancal Technology Co., Ltd's revenue is derived from its provision of digital transformation solutions in both domestic and international markets.

Estimated Discount To Fair Value: 48.7%

Nancal Technology Ltd. is trading at CN¥37.02, significantly below its estimated fair value of CN¥72.23, highlighting undervaluation based on cash flows. Revenue is forecast to grow 24% annually, outpacing the market's growth rate, while earnings are expected to rise significantly at 36.6% per year. Despite a low projected return on equity and recent share price volatility, these strong growth forecasts suggest potential for valuation improvement over time.

SHSE:603859 Discounted Cash Flow as at Feb 2025
SHSE:603859 Discounted Cash Flow as at Feb 2025

Where To Now?

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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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