Stock Analysis

3 Stocks That May Be Undervalued In January 2025

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As the global markets navigate a choppy start to 2025, marked by inflation concerns and political uncertainties, investors are closely monitoring economic indicators and policy shifts. With U.S. equities experiencing declines and small-cap stocks underperforming, the focus on identifying undervalued stocks becomes even more pertinent as these may offer potential opportunities amidst broader market volatility.

Top 10 Undervalued Stocks Based On Cash Flows

NameCurrent PriceFair Value (Est)Discount (Est)
Turkcell Iletisim Hizmetleri (IBSE:TCELL)TRY95.20TRY190.0349.9%
Livero (TSE:9245)¥1564.00¥3113.4749.8%
Türkiye Sise Ve Cam Fabrikalari (IBSE:SISE)TRY39.18TRY78.3450%
Bank BTPN Syariah (IDX:BTPS)IDR860.00IDR1715.8649.9%
German American Bancorp (NasdaqGS:GABC)US$39.26US$78.0649.7%
Sudarshan Chemical Industries (BSE:506655)₹1115.85₹2226.7349.9%
MLG Oz (ASX:MLG)A$0.57A$1.1449.9%
Atlas Arteria (ASX:ALX)A$4.89A$9.7349.7%
Shinko Electric Industries (TSE:6967)¥5868.00¥11708.7849.9%
Coeur Mining (NYSE:CDE)US$6.35US$12.6349.7%

Click here to see the full list of 870 stocks from our Undervalued Stocks Based On Cash Flows screener.

Let's explore several standout options from the results in the screener.

Cowell e Holdings (SEHK:1415)

Overview: Cowell e Holdings Inc. is an investment holding company that designs, develops, manufactures, and sells optical modules and systems integration products for smartphones and other mobile devices across various regions including China, India, and Korea; it has a market capitalization of approximately HK$23.55 billion.

Operations: The company's revenue segment primarily consists of photographic equipment and supplies, generating approximately $1.14 billion.

Estimated Discount To Fair Value: 38.4%

Cowell e Holdings is trading at HK$27.8, significantly undervalued compared to its fair value estimate of HK$45.12. Its earnings are forecast to grow 30.5% annually, outpacing the Hong Kong market's 11.2%. Revenue growth is also expected to exceed market averages at 27.3% per year, despite a decline in profit margins from 6.6% to 3.9%. The company shows potential for strong returns with high-quality earnings and robust cash flow projections.

SEHK:1415 Discounted Cash Flow as at Jan 2025

Giant Biogene Holding (SEHK:2367)

Overview: Giant Biogene Holding Co., Ltd. is an investment holding company focused on the research, development, manufacture, and sale of bioactive material-based beauty and health products in China with a market cap of HK$52.18 billion.

Operations: The company generates revenue of CN¥4.46 billion from its biotechnology segment, which involves bioactive material-based beauty and health products in China.

Estimated Discount To Fair Value: 49.7%

Giant Biogene Holding, trading at HK$52.4, is significantly undervalued with a fair value estimate of HK$104.12. Despite past shareholder dilution, its earnings grew by 68.1% last year and are expected to grow significantly at 23.5% annually, surpassing the Hong Kong market's average growth rate of 11.2%. Revenue is projected to increase by 19.4% per year, also outpacing market averages, indicating robust cash flow potential despite moderate revenue growth forecasts.

SEHK:2367 Discounted Cash Flow as at Jan 2025

Range Intelligent Computing Technology Group (SZSE:300442)

Overview: Range Intelligent Computing Technology Group Company Limited develops data centers and technology campuses, with a market cap of CN¥93.99 billion.

Operations: The company's revenue from IDC Services amounts to CN¥8.08 billion.

Estimated Discount To Fair Value: 11.2%

Range Intelligent Computing Technology Group, trading at CN¥52.37, is undervalued with a fair value estimate of CN¥58.96. Recent earnings reports show substantial growth in revenue and net income over the past year, though profit margins have decreased from 44% to 26.7%. Earnings are expected to grow significantly at 30.6% annually, outpacing the Chinese market's average growth rate of 25%. However, debt coverage by operating cash flow remains inadequate.

SZSE:300442 Discounted Cash Flow as at Jan 2025

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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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