Stock Analysis

3 Noteworthy Stocks Estimated To Be Trading At A Discount Of Up To 49%

BIT:IVG
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Amidst a mixed performance in global markets, with U.S. stocks closing a strong year despite recent volatility, investors are closely examining opportunities that may be trading below their intrinsic value. In such an environment, identifying undervalued stocks can be crucial, as they offer potential for growth when market conditions stabilize and economic indicators improve.

Top 10 Undervalued Stocks Based On Cash Flows

NameCurrent PriceFair Value (Est)Discount (Est)
Ficont Industry (Beijing) (SHSE:605305)CN¥27.90CN¥55.5749.8%
Fevertree Drinks (AIM:FEVR)£6.605£13.1249.7%
Tongqinglou Catering (SHSE:605108)CN¥21.68CN¥43.2549.9%
Zhende Medical (SHSE:603301)CN¥21.05CN¥42.0049.9%
AeroEdge (TSE:7409)¥1763.00¥3511.4549.8%
Vault Minerals (ASX:VAU)A$0.33A$0.6649.9%
Mr. Cooper Group (NasdaqCM:COOP)US$94.43US$187.7149.7%
Shandong Weigao Orthopaedic Device (SHSE:688161)CN¥24.03CN¥47.7649.7%
Vogo (ENXTPA:ALVGO)€2.91€5.8149.9%
Genscript Biotech (SEHK:1548)HK$9.63HK$19.1549.7%

Click here to see the full list of 893 stocks from our Undervalued Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results.

Iveco Group (BIT:IVG)

Overview: Iveco Group N.V. is involved in the design, production, marketing, sale, servicing, and financing of trucks, commercial vehicles, buses, and specialty vehicles for various applications globally with a market cap of €2.47 billion.

Operations: The company's revenue segments include Powertrain at €3.75 billion and Financial Services at €570 million.

Estimated Discount To Fair Value: 29.0%

Iveco Group appears undervalued based on cash flows, trading 29% below its estimated fair value of €13.18. Despite a high debt level, earnings are forecast to grow significantly at 36.7% annually, outpacing the Italian market's growth rate. Recent contracts, including a €755 million deal with the Italian Ministry of Defence and a €235 million agreement for electric buses in Germany, bolster future revenue streams and support its financial position amidst strategic partnerships enhancing market presence.

BIT:IVG Discounted Cash Flow as at Jan 2025
BIT:IVG Discounted Cash Flow as at Jan 2025

Outokumpu Oyj (HLSE:OUT1V)

Overview: Outokumpu Oyj is a company that produces and sells various stainless steel products across Finland, other European countries, North America, the Asia-Pacific, and internationally with a market cap of €1.23 billion.

Operations: The company's revenue segments are comprised of €4.21 billion from Europe (excluding Ferrochrome), €1.72 billion from the Americas, and €491 million from Ferrochrome.

Estimated Discount To Fair Value: 43.7%

Outokumpu Oyj is trading at a significant discount, 43.7% below its estimated fair value of €5.17, highlighting potential undervaluation based on cash flows. Despite a challenging revenue environment with sales declining to €4.54 billion for the first nine months of 2024, the company returned to profitability in Q3 with a net income of €20 million. However, its dividend yield remains unsustainable due to insufficient earnings coverage and low forecasted return on equity at 4.4%.

HLSE:OUT1V Discounted Cash Flow as at Jan 2025
HLSE:OUT1V Discounted Cash Flow as at Jan 2025

Cicor Technologies (SWX:CICN)

Overview: Cicor Technologies Ltd., along with its subsidiaries, develops and manufactures electronic components, devices, and systems globally, with a market cap of CHF258.18 million.

Operations: The company's revenue is primarily derived from its Electronic Manufacturing Services (EMS) Division, which accounts for CHF377.46 million, and its Advanced Substrates (AS) Division, contributing CHF46.24 million.

Estimated Discount To Fair Value: 49%

Cicor Technologies is trading at CHF60.8, significantly below its fair value estimate of CHF119.3, suggesting it is undervalued based on cash flows. Despite a forecasted earnings growth of 28.3% annually, which outpaces the Swiss market average, the company faces challenges with high debt levels and recent sales guidance revision to CHF470-490 million for 2024. Additionally, Oep 80 B.V.'s proposed acquisition at CHF55.17 per share could impact future valuations and strategic direction.

SWX:CICN Discounted Cash Flow as at Jan 2025
SWX:CICN 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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