Stock Analysis

Husqvarna And 2 Other Stocks That May Be Priced Below Their Estimated Value

SHSE:603290
Source: Shutterstock

In the midst of global market fluctuations driven by tariff uncertainties and mixed economic data, investors are keenly watching for opportunities to capitalize on undervalued stocks. With U.S. job growth falling short of expectations and manufacturing activity showing signs of recovery, identifying stocks priced below their estimated value can be a strategic move in navigating these complex market conditions.

Top 10 Undervalued Stocks Based On Cash Flows

NameCurrent PriceFair Value (Est)Discount (Est)
DIP (TSE:2379)¥2275.00¥4529.3049.8%
Atour Lifestyle Holdings (NasdaqGS:ATAT)US$29.57US$58.9449.8%
Biotage (OM:BIOT)SEK138.70SEK273.6149.3%
People & Technology (KOSDAQ:A137400)₩41400.00₩81928.4149.5%
Solum (KOSE:A248070)₩17570.00₩34836.4849.6%
Guangdong Fenghua Advanced Technology (Holding) (SZSE:000636)CN¥15.19CN¥29.9949.3%
Canatu Oyj (HLSE:CANATU)€12.50€24.7949.6%
RENK Group (DB:R3NK)€24.94€49.3749.5%
Marcus & Millichap (NYSE:MMI)US$37.27US$73.7649.5%
Kyndryl Holdings (NYSE:KD)US$41.54US$82.1449.4%

Click here to see the full list of 906 stocks from our Undervalued Stocks Based On Cash Flows screener.

Let's review some notable picks from our screened stocks.

Husqvarna (OM:HUSQ B)

Overview: Husqvarna AB (publ) is a company that produces and sells outdoor power products, watering products, and lawn care power equipment, with a market cap of SEK32.12 billion.

Operations: The revenue segments for Husqvarna AB include Gardena at SEK12.28 billion, Husqvarna Construction at SEK7.77 billion, and Husqvarna Forest & Garden at SEK28.15 billion.

Estimated Discount To Fair Value: 34.2%

Husqvarna is trading at SEK 56.18, significantly below its estimated fair value of SEK 85.4, suggesting it may be undervalued based on cash flows. Despite a challenging year with decreased net income and reduced dividends, the company is expected to grow earnings by over 26% annually, outpacing the Swedish market. Recent strategic partnerships and product expansions in autonomous lawnmowers could bolster future growth prospects despite a high level of debt.

OM:HUSQ B Discounted Cash Flow as at Feb 2025
OM:HUSQ B Discounted Cash Flow as at Feb 2025

Bosideng International Holdings (SEHK:3998)

Overview: Bosideng International Holdings Limited operates in the apparel business in the People’s Republic of China, with a market cap of HK$44.20 billion.

Operations: The company's revenue segments include Down Apparels with CN¥20.66 billion, Ladieswear Apparels at CN¥735.22 million, Diversified Apparels totaling CN¥254.12 million, and Original Equipment Manufacturing (OEM) Management contributing CN¥2.97 billion.

Estimated Discount To Fair Value: 23.8%

Bosideng International Holdings is trading at HK$3.85, below its estimated fair value of HK$5.05, indicating potential undervaluation based on cash flows. Recent share buyback announcements aim to enhance net asset value and earnings per share, utilizing available cash flow. Despite an unstable dividend track record, the company reported increased earnings and revenue in the latest half-year results, with future earnings growth expected to outpace the Hong Kong market average.

SEHK:3998 Discounted Cash Flow as at Feb 2025
SEHK:3998 Discounted Cash Flow as at Feb 2025

StarPower Semiconductor (SHSE:603290)

Overview: StarPower Semiconductor Ltd. is engaged in the research, design, development, production, and sale of power semiconductor components globally with a market cap of CN¥22.64 billion.

Operations: The company's revenue primarily comes from its Power Semiconductor Devices segment, which generated CN¥3.46 billion.

Estimated Discount To Fair Value: 32.1%

StarPower Semiconductor is trading at CN¥94.56, below its estimated fair value of CN¥139.17, highlighting potential undervaluation based on cash flows. The company is expected to see revenue growth of 21% annually, outpacing the Chinese market average. Despite being removed from major indices like the SSE 180 Index, StarPower's earnings are projected to grow significantly over the next three years, though its return on equity remains a concern for future performance.

SHSE:603290 Discounted Cash Flow as at Feb 2025
SHSE:603290 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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