3 Stocks Investors Might Be Undervaluing Based On Current Estimates

As global markets navigate the complexities of rising U.S. Treasury yields and tepid economic growth, investors are increasingly cautious about the potential for a slower monetary policy easing cycle by major central banks. Despite these challenges, opportunities may exist in stocks that are currently undervalued based on current estimates, as they can offer potential value when broader market conditions stabilize.

Top 10 Undervalued Stocks Based On Cash Flows

Name	Current Price	Fair Value (Est)	Discount (Est)
Trimegah Bangun Persada (IDX:NCKL)	IDR890.00	IDR1777.58	49.9%
Provident Financial Services (NYSE:PFS)	US$19.03	US$37.92	49.8%
Western Alliance Bancorporation (NYSE:WAL)	US$84.27	US$168.24	49.9%
California Resources (NYSE:CRC)	US$52.32	US$104.35	49.9%
Geovis TechnologyLtd (SHSE:688568)	CN¥40.77	CN¥81.16	49.8%
Beyout Investment Group Holding Company - K.S.C. (Holding) (KWSE:BEYOUT)	KWD0.395	KWD0.79	49.9%
Acerinox (BME:ACX)	€8.52	€16.98	49.8%
Enento Group Oyj (HLSE:ENENTO)	€18.40	€36.57	49.7%
ChromaDex (NasdaqCM:CDXC)	US$3.58	US$7.15	49.9%
Fine Foods & Pharmaceuticals N.T.M (BIT:FF)	€8.36	€16.70	49.9%

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.

Seres GroupLtd (SHSE:601127)

Overview: Seres Group Co., Ltd. engages in the research, development, manufacturing, and sale of automobiles and auto parts in China, with a market capitalization of CN¥164.84 billion.

Operations: The company generates revenue of CN¥89.85 billion from its automobile industry segment in China.

Estimated Discount To Fair Value: 35.4%

Seres Group Ltd. reported substantial revenue growth, with sales reaching CNY 106.63 billion for the first nine months of 2024, up from CNY 16.68 billion a year ago, and net income of CNY 4.04 billion compared to a loss previously. The stock is trading significantly below its estimated fair value, offering potential value based on cash flows despite large one-off items affecting results. Earnings are expected to grow significantly faster than the market average.

• According our earnings growth report, there's an indication that Seres GroupLtd might be ready to expand.
• Get an in-depth perspective on Seres GroupLtd's balance sheet by reading our health report here.

Georg Fischer (SWX:GF)

Overview: Georg Fischer AG operates in the provision of piping systems and casting and machining solutions across Europe, the Americas, Asia, and internationally, with a market cap of CHF5.24 billion.

Operations: The company's revenue segments include GF Piping Systems at CHF1.99 billion, GF Casting Solutions at CHF901 million, and GF Machining Solutions at CHF853 million.

Estimated Discount To Fair Value: 43%

Georg Fischer is trading at CHF63.95, significantly below its estimated fair value of CHF112.19, indicating potential undervaluation based on cash flows. Despite a volatile share price and unstable dividend history, earnings are forecast to grow 22.4% annually, outpacing the Swiss market's growth rate of 11.5%. However, profit margins have declined from 6.8% to 4.6%, and debt coverage by operating cash flow remains weak, presenting some financial challenges.

• Our comprehensive growth report raises the possibility that Georg Fischer is poised for substantial financial growth.
• Click to explore a detailed breakdown of our findings in Georg Fischer's balance sheet health report.

adidas (XTRA:ADS)

Overview: adidas AG, along with its subsidiaries, is involved in the design, development, production, and marketing of athletic and sports lifestyle products across Europe, the Middle East, Africa, North America, Greater China, the Asia-Pacific region, and Latin America with a market cap of approximately €39.42 billion.

Operations: The company's revenue segments include €3.34 billion from Greater China, €2.44 billion from Latin America, and €4.95 billion from North America.

Estimated Discount To Fair Value: 35.9%

Adidas is trading at €220.8, well below its estimated fair value of €344.21, reflecting potential undervaluation based on cash flows. Recent earnings reports show strong performance with third-quarter sales rising to €6.44 billion and net income increasing to €443 million from the previous year’s figures. Forecasts predict annual earnings growth of 38.2%, outpacing the German market's 20.2% growth rate, while revenue is expected to grow by 8.5% annually.

• Our growth report here indicates adidas may be poised for an improving outlook.
• Unlock comprehensive insights into our analysis of adidas stock in this financial health report.

Seize The Opportunity

• Explore the 959 names from our Undervalued Stocks Based On Cash Flows screener here.
• 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.
• Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets.

Contemplating Other Strategies?

• 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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