3 Stocks Estimated To Be Trading At Discounts Of Up To 42.6%

In the midst of volatile global markets, characterized by fluctuating corporate earnings and competitive pressures in the AI sector, investors are keenly observing opportunities that may arise from recent developments. With central banks like the ECB reducing rates and the Fed maintaining its stance, market participants are considering stocks that might be trading below their intrinsic value. In this context, identifying undervalued stocks can offer potential advantages as they may provide a buffer against market turbulence while aligning with long-term investment strategies.

Top 10 Undervalued Stocks Based On Cash Flows

Name	Current Price	Fair Value (Est)	Discount (Est)
Wistron (TWSE:3231)	NT$102.00	NT$197.53	48.4%
Alltop Technology (TPEX:3526)	NT$270.50	NT$527.83	48.8%
Decisive Dividend (TSXV:DE)	CA$5.90	CA$11.79	50%
Northwest Bancshares (NasdaqGS:NWBI)	US$13.17	US$26.31	49.9%
Emporiki Eisagogiki Aftokiniton Ditrohon kai Mihanon Thalassis Societe Anonyme (ATSE:MOTO)	€2.72	€5.43	49.9%
Telefonaktiebolaget LM Ericsson (OM:ERIC B)	SEK83.22	SEK165.90	49.8%
Spin Master (TSX:TOY)	CA$30.23	CA$60.17	49.8%
Coastal Financial (NasdaqGS:CCB)	US$86.74	US$172.68	49.8%
Equifax (NYSE:EFX)	US$266.77	US$531.78	49.8%
Facephi Biometria (BME:FACE)	€2.23	€4.45	49.8%

Click here to see the full list of 930 stocks from our Undervalued Stocks Based On Cash Flows screener.

Let's uncover some gems from our specialized screener.

NBTM New Materials Group (SHSE:600114)

Overview: NBTM New Materials Group Co., Ltd. produces and sells powder metallurgy mechanical parts globally, with a market cap of CN¥10.61 billion.

Operations: The company generates revenue from the production and sale of powder metallurgy mechanical parts across international markets.

Estimated Discount To Fair Value: 42.6%

NBTM New Materials Group, trading at CN¥18.33, is significantly undervalued with a fair value estimate of CN¥31.91. Despite its low dividend coverage by free cash flows, the company shows strong potential with earnings forecasted to grow 26.35% annually over the next three years, outpacing the Chinese market average of 25.1%. However, debt coverage by operating cash flow remains a concern amidst robust revenue growth projections exceeding 20% per year.

• In light of our recent growth report, it seems possible that NBTM New Materials Group's financial performance will exceed current levels.
• Take a closer look at NBTM New Materials Group's balance sheet health here in our report.

Jiangxi Hongdu Aviation Industry (SHSE:600316)

Overview: Jiangxi Hongdu Aviation Industry Co., Ltd. operates in the aerospace sector, focusing on the manufacturing of aircraft and related products, with a market cap of CN¥22.04 billion.

Operations: The company generates its revenue of CN¥4.84 billion primarily from the production, processing, research and development, and services related to aviation products.

Estimated Discount To Fair Value: 37.3%

Jiangxi Hongdu Aviation Industry, at CN¥32.11, is trading well below its fair value estimate of CN¥51.19, indicating significant undervaluation based on cash flows. Despite a forecasted low return on equity of 4% in three years, the company's earnings are projected to grow substantially at 77% annually, surpassing market averages. Revenue growth is also expected to be robust at 33.6% per year, although recent profit margins have declined from last year’s figures.

• Our earnings growth report unveils the potential for significant increases in Jiangxi Hongdu Aviation Industry's future results.
• Get an in-depth perspective on Jiangxi Hongdu Aviation Industry's balance sheet by reading our health report here.

Shenzhen Everwin Precision Technology (SZSE:300115)

Overview: Shenzhen Everwin Precision Technology Co., Ltd. operates in the precision manufacturing industry and has a market cap of CN¥25.24 billion.

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Estimated Discount To Fair Value: 12.8%

Shenzhen Everwin Precision Technology, priced at CN¥20.2, is trading below its estimated fair value of CN¥23.18, reflecting potential undervaluation based on cash flows. The company's earnings are forecast to grow significantly at 26.1% annually, outpacing the market average of 25.1%. However, it carries a high level of debt and has a projected low return on equity of 17.2% in three years despite strong past earnings growth of 334.4%.

• According our earnings growth report, there's an indication that Shenzhen Everwin Precision Technology might be ready to expand.
• Click to explore a detailed breakdown of our findings in Shenzhen Everwin Precision Technology's balance sheet health report.

Next Steps

• Access the full spectrum of 930 Undervalued Stocks Based On Cash Flows by clicking on this link.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

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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