Advanced Petrochemical And 2 Other Stocks Estimated To Be Trading Below Intrinsic Value
Reviewed by Simply Wall St
As global markets navigate a choppy start to the year, marked by inflation concerns and political uncertainties, investors are keenly observing how these factors influence equity performances across major indices. With U.S. equities experiencing declines and small-cap stocks underperforming their larger counterparts, there is growing interest in identifying stocks that may be trading below their intrinsic value amidst this volatility. In such an environment, a good stock often reflects strong fundamentals and resilience against economic headwinds, making it potentially undervalued despite broader market challenges.
Top 10 Undervalued Stocks Based On Cash Flows
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Turkcell Iletisim Hizmetleri (IBSE:TCELL) | TRY95.20 | TRY190.03 | 49.9% |
| Türkiye Sise Ve Cam Fabrikalari (IBSE:SISE) | TRY39.18 | TRY78.34 | 50% |
| Bank BTPN Syariah (IDX:BTPS) | IDR860.00 | IDR1715.86 | 49.9% |
| German American Bancorp (NasdaqGS:GABC) | US$39.26 | US$78.06 | 49.7% |
| GemPharmatech (SHSE:688046) | CN¥13.06 | CN¥25.98 | 49.7% |
| Shinko Electric Industries (TSE:6967) | ¥5865.00 | ¥11696.09 | 49.9% |
| AK Medical Holdings (SEHK:1789) | HK$4.28 | HK$8.52 | 49.8% |
| TSE (KOSDAQ:A131290) | ₩43400.00 | ₩86241.99 | 49.7% |
| Jiangsu Chuanzhiboke Education Technology (SZSE:003032) | CN¥9.20 | CN¥18.40 | 50% |
| Coeur Mining (NYSE:CDE) | US$6.35 | US$12.63 | 49.7% |
Let's take a closer look at a couple of our picks from the screened companies.
Advanced Petrochemical (SASE:2330)
Overview: Advanced Petrochemical Company, with a market cap of SAR8.13 billion, produces and sells propylene, polypropylene, isopropyl alcohol, polysilicon, and related products in Saudi Arabia and internationally.
Operations: Revenue segments for Advanced Petrochemical include Specialty Chemicals, which generated SAR2.18 billion.
Estimated Discount To Fair Value: 15.5%
Advanced Petrochemical is trading at SAR 31.45, below its fair value estimate of SAR 37.24, suggesting potential undervaluation based on cash flows. Despite a forecasted earnings growth of 57.9% annually, the dividend yield of 7% isn't well-covered by earnings or free cash flow. Recent reports show stable quarterly sales but significant year-over-year declines in net income and profit margins, highlighting financial challenges despite optimistic revenue growth forecasts exceeding market expectations.
- Our growth report here indicates Advanced Petrochemical may be poised for an improving outlook.
- Get an in-depth perspective on Advanced Petrochemical's balance sheet by reading our health report here.
Servyou Software Group (SHSE:603171)
Overview: Servyou Software Group Co., Ltd. operates in China, offering financial and tax information services, with a market capitalization of approximately CN¥11.66 billion.
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Estimated Discount To Fair Value: 19.7%
Servyou Software Group is trading at CN¥28.66, below its estimated fair value of CN¥35.68, highlighting potential undervaluation based on cash flows. Earnings are forecast to grow significantly at 50.9% annually, outpacing the market's 24.8% growth expectation, while revenue is projected to increase by over 20% per year. Despite improved net income and earnings per share compared to last year, profit margins have decreased from 8.6% to 5%, and return on equity remains low at a forecasted 14.3%.
- Our expertly prepared growth report on Servyou Software Group implies its future financial outlook may be stronger than recent results.
- Click to explore a detailed breakdown of our findings in Servyou Software Group's balance sheet health report.
Yunnan Energy New Material (SZSE:002812)
Overview: Yunnan Energy New Material Co., Ltd., along with its subsidiaries, provides film products both in China and internationally, with a market capitalization of CN¥29.74 billion.
Operations: Yunnan Energy New Material Co., Ltd. generates revenue primarily through its film products offered domestically and internationally.
Estimated Discount To Fair Value: 31.1%
Yunnan Energy New Material is trading at CN¥30.66, significantly below its estimated fair value of CN¥44.48, indicating potential undervaluation based on cash flows. Despite a decline in profit margins from 23.6% to 7.8% and lower net income year-over-year, earnings are expected to grow at 39.2% annually, surpassing the market's growth rate of 24.8%. Revenue is projected to increase by 19.6% per year; however, debt coverage by operating cash flow remains inadequate.
- Insights from our recent growth report point to a promising forecast for Yunnan Energy New Material's business outlook.
- Dive into the specifics of Yunnan Energy New Material here with our thorough financial health report.
Seize The Opportunity
- Investigate our full lineup of 874 Undervalued Stocks Based On Cash Flows right 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.
- Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.
Ready For A Different Approach?
- 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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About SZSE:002812
Yunnan Energy New Material
Offers film products in China and internationally.
Reasonable growth potential with adequate balance sheet.
