Stock Analysis

3 Stocks That May Be Trading Up To 42.2% Below Intrinsic Estimates

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As global markets navigate the complexities of rising U.S. Treasury yields and tepid economic growth, investors are keenly observing how these factors impact stock valuations and future rate expectations. With the S&P 500 recently experiencing a downturn after several weeks of gains, identifying stocks that may be trading below their intrinsic value becomes increasingly relevant for those seeking potential opportunities amidst market fluctuations. In such an environment, a good stock is often characterized by its resilience to broader market pressures and its potential for growth despite current undervaluations.

Top 10 Undervalued Stocks Based On Cash Flows

NameCurrent PriceFair Value (Est)Discount (Est)
Trimegah Bangun Persada (IDX:NCKL)IDR890.00IDR1777.5849.9%
Provident Financial Services (NYSE:PFS)US$19.03US$37.9249.8%
Western Alliance Bancorporation (NYSE:WAL)US$84.27US$168.2449.9%
California Resources (NYSE:CRC)US$52.32US$104.3549.9%
Geovis TechnologyLtd (SHSE:688568)CN¥41.40CN¥81.0548.9%
Beyout Investment Group Holding Company - K.S.C. (Holding) (KWSE:BEYOUT)KWD0.395KWD0.7949.9%
Acerinox (BME:ACX)€8.52€16.9849.8%
Enento Group Oyj (HLSE:ENENTO)€18.40€36.5749.7%
ChromaDex (NasdaqCM:CDXC)US$3.58US$7.1549.9%
Fine Foods & Pharmaceuticals N.T.M (BIT:FF)€8.36€16.7049.9%

Click here to see the full list of 959 stocks from our Undervalued Stocks Based On Cash Flows screener.

Let's uncover some gems from our specialized screener.

SKSHU PaintLtd (SHSE:603737)

Overview: SKSHU Paint Co., Ltd. operates under the 3trees brand, producing and selling paints, coatings, and building materials in China with a market cap of CN¥22.40 billion.

Operations: The company generates revenue from its segments, including paints, coatings, and building materials under the 3trees brand in China.

Estimated Discount To Fair Value: 19.3%

SKSHU Paint Ltd. reported a decline in net income to CNY 410.34 million for the nine months ended September 30, 2024, despite sales of CNY 9.15 billion. The stock trades at CN¥44.6, below its fair value estimate of CN¥55.28, indicating potential undervaluation based on cash flows. However, profit margins have decreased significantly from last year and the company carries a high level of debt with earnings impacted by large one-off items.

SHSE:603737 Discounted Cash Flow as at Oct 2024

AVIC Jonhon Optronic TechnologyLtd (SZSE:002179)

Overview: AVIC Jonhon Optronic Technology Co., Ltd. focuses on the research and development of optical, electrical, and fluid connection technologies and equipment in China, with a market cap of CN¥94.87 billion.

Operations: Revenue segments for SZSE:002179 include optical connection technology and equipment at CN¥5.23 billion, electrical connection technology and equipment at CN¥3.47 billion, and fluid connection technology and equipment at CN¥1.89 billion.

Estimated Discount To Fair Value: 19.3%

AVIC Jonhon Optronic Technology Ltd. reported a decline in net income to CNY 2.51 billion for the nine months ended September 30, 2024, with sales of CNY 14.10 billion. Trading at CN¥44.15, below its fair value estimate of CN¥54.69, it presents potential undervaluation based on cash flows despite lower revenue and earnings compared to last year. Forecasts show robust revenue growth of over 21% annually, though earnings growth is slightly below market expectations.

SZSE:002179 Discounted Cash Flow as at Oct 2024

AGC (TSE:5201)

Overview: AGC Inc. is a global manufacturer and seller of glass, automotive, electronics, chemicals, and ceramics with a market cap of approximately ¥993.85 billion.

Operations: The company's revenue segments include Chemicals at ¥581.78 billion, Automotive at ¥510.88 billion, Electronics at ¥340.54 billion, Life Science at ¥122.40 billion, and Architectural Glass at ¥461.20 billion.

Estimated Discount To Fair Value: 42.2%

AGC Inc. trades at ¥4,702, significantly below its estimated fair value of ¥8,134.68, suggesting potential undervaluation based on cash flows. Despite forecasted annual earnings growth of over 68%, revenue is expected to grow modestly at 4.3% annually. Recent product launches in high-speed communication materials and expansion in semiconductor solutions highlight strategic growth initiatives amid challenges like lowered financial guidance due to European economic slowdown and biopharmaceutical sales decline.

TSE:5201 Discounted Cash Flow as at Oct 2024

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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