Stock Analysis

February 2025's Estimated Value Stocks For Savvy Investors

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As global markets grapple with economic uncertainties, including tariff tensions and mixed employment data, investors are keenly observing the fluctuations in major indices like the S&P 500 and Nasdaq Composite. Amid these conditions, identifying stocks that may be undervalued can offer potential opportunities for those looking to navigate the current market landscape effectively. In this context, a good stock is often characterized by strong fundamentals and resilience against broader market volatility.

Top 10 Undervalued Stocks Based On Cash Flows

NameCurrent PriceFair Value (Est)Discount (Est)
Gilead Sciences (NasdaqGS:GILD)US$96.14US$191.7449.9%
National World (LSE:NWOR)£0.227£0.4549.5%
On the Beach Group (LSE:OTB)£2.495£4.9449.5%
TCI (TPEX:8436)NT$119.00NT$237.0049.8%
Hanjaya Mandala Sampoerna (IDX:HMSP)IDR575.00IDR1141.1049.6%
APAC Realty (SGX:CLN)SGD0.455SGD0.9149.9%
Smurfit Westrock (NYSE:SW)US$53.64US$107.0449.9%
Array Technologies (NasdaqGM:ARRY)US$6.87US$13.6649.7%
SK D&D (KOSE:A210980)₩7110.00₩14097.0749.6%
Pantoro (ASX:PNR)A$0.135A$0.2749.5%

Click here to see the full list of 899 stocks from our Undervalued Stocks Based On Cash Flows screener.

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

Saudi Basic Industries (SASE:2010)

Overview: Saudi Basic Industries Corporation operates in the global manufacture, marketing, and distribution of chemicals, polymers, plastics, agri-nutrients, and metal products with a market cap of SAR203.40 billion.

Operations: The company's revenue is primarily derived from its Petrochemicals & Specialties segment, which generated SAR129.98 billion, and its Agri-Nutrients segment, contributing SAR10.34 billion.

Estimated Discount To Fair Value: 29.9%

Saudi Basic Industries is trading at SAR67.8, significantly below its estimated fair value of SAR96.76, indicating it may be undervalued based on cash flows. Despite a dividend yield of 5.01% not being well covered by earnings or free cash flows, the company's earnings are forecast to grow significantly over the next three years at 52% per year, outpacing the Saudi Arabian market's growth rate and suggesting strong future cash flow potential.

SASE:2010 Discounted Cash Flow as at Feb 2025

Asymchem Laboratories (Tianjin) (SZSE:002821)

Overview: Asymchem Laboratories (Tianjin) Co., Ltd. operates as a contract development and manufacturing organization (CDMO) providing services to the pharmaceutical industry, with a market cap of CN¥28.22 billion.

Operations: The company generates revenue of CN¥5.57 billion from its Pharmaceutical Technology segment.

Estimated Discount To Fair Value: 10.1%

Asymchem Laboratories (Tianjin), trading at CN¥81.9, is slightly undervalued against its fair value estimate of CN¥91.11. Despite a challenging year with net profit dropping significantly due to the absence of large orders and increased R&D expenses, earnings are expected to grow significantly over the next three years. The company has shown resilience with quarter-on-quarter revenue growth and strong order momentum from European and American markets, supporting future cash flow prospects.

SZSE:002821 Discounted Cash Flow as at Feb 2025

Beijing Easpring Material TechnologyLTD (SZSE:300073)

Overview: Beijing Easpring Material Technology Co., Ltd. develops, produces, and sells lithium battery materials both in China and internationally, with a market cap of CN¥20.29 billion.

Operations: The company generates revenue through its development, production, and sale of lithium battery materials across domestic and international markets.

Estimated Discount To Fair Value: 33.3%

Beijing Easpring Material Technology, trading at CN¥40.06, is significantly undervalued with a fair value estimate of CN¥60.02, offering potential for cash flow-driven investment returns. Despite a low forecasted return on equity and unsustainable dividend coverage by free cash flows, the company anticipates robust revenue growth of 28.6% annually, outpacing the Chinese market average. Recent shareholder meetings focus on optimizing fund allocation from previous share offerings to enhance project investments.

SZSE:300073 Discounted Cash Flow as at Feb 2025

Next Steps

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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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