Stock Analysis

3 Stocks Estimated To Be Up To 47.1% Below Intrinsic Value

SASE:2310
Source: Shutterstock

As global markets navigate a period of mixed economic signals, including a dip in U.S. consumer confidence and fluctuating stock index performances, investors are keenly assessing opportunities that may be undervalued amidst these conditions. In this environment, identifying stocks that are trading below their intrinsic value can be crucial for investors looking to capitalize on potential market inefficiencies and position themselves strategically for future gains.

Top 10 Undervalued Stocks Based On Cash Flows

NameCurrent PriceFair Value (Est)Discount (Est)
Strike CompanyLimited (TSE:6196)¥3655.00¥7288.6549.9%
S Foods (TSE:2292)¥2737.00¥5472.3550%
GlobalData (AIM:DATA)£1.875£3.7449.8%
Atlas Arteria (ASX:ALX)A$4.83A$9.6449.9%
Cettire (ASX:CTT)A$1.51A$3.0149.9%
Beijing LeiKe Defense Technology (SZSE:002413)CN¥4.53CN¥9.0149.7%
Merus Power Oyj (HLSE:MERUS)€3.71€7.3949.8%
Progress Software (NasdaqGS:PRGS)US$65.05US$129.4849.8%
Suzhou Zelgen BiopharmaceuticalsLtd (SHSE:688266)CN¥63.53CN¥126.4949.8%
SkyCity Entertainment Group (NZSE:SKC)NZ$1.45NZ$2.8849.7%

Click here to see the full list of 886 stocks from our Undervalued Stocks Based On Cash Flows screener.

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

Sahara International Petrochemical (SASE:2310)

Overview: Sahara International Petrochemical Company operates and manages industrial projects in the chemical and petrochemical industries in Saudi Arabia, with a market cap of SAR17.81 billion.

Operations: The company's revenue segments include Polymers at SAR2.30 billion, Marketing at SAR4.93 billion, Basic Chemicals at SAR2.41 billion, and Intermediate Chemicals at SAR2.31 billion.

Estimated Discount To Fair Value: 37.2%

Sahara International Petrochemical is trading significantly below its estimated fair value of SAR 39.09, with a current price of SAR 24.56, suggesting potential undervaluation based on discounted cash flow analysis. Despite recent declines in sales and net income, earnings are forecast to grow significantly at 35.9% annually over the next three years, outpacing the Saudi Arabian market's expected growth rate. However, profit margins have decreased from last year, and dividends remain inadequately covered by earnings.

SASE:2310 Discounted Cash Flow as at Dec 2024
SASE:2310 Discounted Cash Flow as at Dec 2024

China Resources Mixc Lifestyle Services (SEHK:1209)

Overview: China Resources Mixc Lifestyle Services Limited is an investment holding company offering property management and commercial operational services in the People’s Republic of China, with a market cap of HK$64.94 billion.

Operations: The company's revenue segments include CN¥10.22 billion from the property management business and CN¥5.71 billion from the commercial management business in the People’s Republic of China.

Estimated Discount To Fair Value: 47.1%

China Resources Mixc Lifestyle Services is trading at HK$28.45, significantly below its estimated fair value of HK$53.81, indicating potential undervaluation based on cash flow analysis. Recent agreements to provide property management and commercial operation services until 2027 could bolster revenue streams. Earnings grew by 33.1% last year and are expected to grow at 14.3% annually, outpacing the Hong Kong market's growth forecast of 11.5%. However, revenue growth is projected at a moderate pace of 16.2% per year.

SEHK:1209 Discounted Cash Flow as at Dec 2024
SEHK:1209 Discounted Cash Flow as at Dec 2024

Shenzhen Everwin Precision Technology (SZSE:300115)

Overview: Shenzhen Everwin Precision Technology Co., Ltd. operates in the precision manufacturing industry with a market cap of CN¥22.95 billion.

Operations: Revenue segments for the company are not provided in the given text.

Estimated Discount To Fair Value: 12%

Shenzhen Everwin Precision Technology is trading at CN¥16.97, slightly below its estimated fair value of CN¥19.28, suggesting undervaluation based on cash flows. Recent earnings results show significant growth, with net income rising to CNY 594.2 million from CNY 1.55 million a year ago. Despite high debt levels and past shareholder dilution, earnings are forecast to grow significantly at 27.6% annually, outpacing the Chinese market's average growth rate of 25.5%.

SZSE:300115 Discounted Cash Flow as at Dec 2024
SZSE:300115 Discounted Cash Flow as at Dec 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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