Stock Analysis
3 Stocks Estimated To Be Undervalued By Up To 48.1%
Reviewed by Simply Wall St
As global markets navigate a period of mixed performance, with the Nasdaq reaching new heights while other major indexes decline, investors are keenly observing economic indicators and central bank decisions that could influence market dynamics. In this environment, identifying undervalued stocks can be particularly appealing as they may offer potential value opportunities amidst broader market fluctuations.
Top 10 Undervalued Stocks Based On Cash Flows
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Sudarshan Chemical Industries (BSE:506655) | ₹1129.90 | ₹2254.60 | 49.9% |
| Kuaishou Technology (SEHK:1024) | HK$42.75 | HK$85.08 | 49.8% |
| Gaming Realms (AIM:GMR) | £0.362 | £0.72 | 49.7% |
| Lindab International (OM:LIAB) | SEK225.40 | SEK450.75 | 50% |
| Decisive Dividend (TSXV:DE) | CA$5.93 | CA$11.84 | 49.9% |
| GlobalData (AIM:DATA) | £1.875 | £3.75 | 50% |
| Western Alliance Bancorporation (NYSE:WAL) | US$82.86 | US$165.30 | 49.9% |
| HealthEquity (NasdaqGS:HQY) | US$94.76 | US$189.22 | 49.9% |
| North Electro-OpticLtd (SHSE:600184) | CN¥11.12 | CN¥22.17 | 49.8% |
| Ingenia Communities Group (ASX:INA) | A$4.62 | A$9.23 | 49.9% |
Let's uncover some gems from our specialized screener.
Guangzhou Fangbang ElectronicsLtd (SHSE:688020)
Overview: Guangzhou Fangbang Electronics Co., Ltd is involved in the research and development, production, sale, and service of electronic materials in China with a market cap of CN¥2.99 billion.
Operations: The company generates revenue through its activities in research and development, production, sale, and service of electronic materials within China.
Estimated Discount To Fair Value: 33.6%
Guangzhou Fangbang Electronics is trading at CN¥38.59, significantly below its estimated fair value of CN¥58.1, suggesting it may be undervalued based on cash flows. Despite reporting a net loss of CN¥39.63 million for the nine months ending September 2024, the company's revenue is forecast to grow at an impressive 60.9% annually, surpassing market expectations and indicating potential for profitability within three years.
- Insights from our recent growth report point to a promising forecast for Guangzhou Fangbang ElectronicsLtd's business outlook.
- Get an in-depth perspective on Guangzhou Fangbang ElectronicsLtd's balance sheet by reading our health report here.
Shenzhen King Explorer Science and Technology (SZSE:002917)
Overview: Shenzhen King Explorer Science and Technology Corporation researches, designs, develops, manufactures, and sells intelligent equipment systems to civil explosive production and blasting service companies in China and internationally, with a market cap of CN¥3.42 billion.
Operations: Shenzhen King Explorer Science and Technology Corporation generates revenue through the research, design, development, manufacturing, and sale of intelligent equipment systems for civil explosive production and blasting service companies both domestically in China and internationally.
Estimated Discount To Fair Value: 48.1%
Shenzhen King Explorer Science and Technology is trading at CN¥10.01, significantly below its estimated fair value of CN¥19.28, reflecting potential undervaluation based on cash flows. The company reported a net income increase to CNY 107.67 million for the nine months ending September 2024, with earnings per share rising from CNY 0.2333 to CNY 0.3136 year-over-year. Revenue growth is forecasted at 25.1% annually, outpacing the Chinese market's average growth rate of 13.7%.
- Upon reviewing our latest growth report, Shenzhen King Explorer Science and Technology's projected financial performance appears quite optimistic.
- Delve into the full analysis health report here for a deeper understanding of Shenzhen King Explorer Science and Technology.
West Holdings (TSE:1407)
Overview: West Holdings Corporation, with a market cap of ¥66.23 billion, operates in the renewable energy sector both in Japan and internationally through its subsidiaries.
Operations: The company's revenue is primarily derived from its Renewable Energy Business at ¥41.97 billion, followed by the Electric Power Business at ¥5.20 billion, the Maintenance Business contributing ¥1.98 billion, and the Energy Saving Business adding ¥1.62 billion.
Estimated Discount To Fair Value: 45.5%
West Holdings is trading at ¥1667, significantly below its estimated fair value of ¥3059.1, indicating potential undervaluation based on cash flows. Despite a high level of non-cash earnings and volatile share price, the company forecasts revenue growth at 10.7% annually—outpacing the JP market's 4.2%. However, debt coverage by operating cash flow remains inadequate, and dividends are not well supported by free cash flows despite strong earnings growth projections at 12.2% per year.
- Our comprehensive growth report raises the possibility that West Holdings is poised for substantial financial growth.
- Dive into the specifics of West Holdings here with our thorough financial health report.
Next Steps
- Unlock our comprehensive list of 884 Undervalued Stocks Based On Cash Flows by clicking here.
- Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
- Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets.
Want To Explore Some Alternatives?
- 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:002917
Shenzhen King Explorer Science and Technology
Researches, designs, develops, manufactures, and sells intelligent equipment systems to civil explosive production and blasting service companies in China and internationally.
