Stock Analysis

3 Stocks That May Be Priced Below Estimated Value In January 2025

ENXTPA:LSS
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As we enter 2025, global markets reflect a mix of cautious optimism and economic uncertainty, with U.S. indices closing out a strong year despite recent volatility and mixed signals from manufacturing data. In this environment, identifying stocks that may be priced below their estimated value can present opportunities for investors seeking to navigate the complexities of market fluctuations. Understanding what constitutes a potentially undervalued stock involves assessing factors such as earnings potential, industry position, and broader economic trends highlighted in recent market updates.

Top 10 Undervalued Stocks Based On Cash Flows

NameCurrent PriceFair Value (Est)Discount (Est)
Camden National (NasdaqGS:CAC)US$42.01US$83.8449.9%
Brickability Group (AIM:BRCK)£0.626£1.2549.8%
Decisive Dividend (TSXV:DE)CA$6.00CA$11.9449.8%
Brunel International (ENXTAM:BRNL)€9.84€19.6449.9%
Emporiki Eisagogiki Aftokiniton Ditrohon kai Mihanon Thalassis Societe Anonyme (ATSE:MOTO)€2.73€5.4449.8%
EnomotoLtd (TSE:6928)¥1452.00¥2887.7249.7%
Zhende Medical (SHSE:603301)CN¥20.99CN¥41.9149.9%
ReadyTech Holdings (ASX:RDY)A$3.14A$6.2549.8%
Neosperience (BIT:NSP)€0.572€1.1449.8%
Vogo (ENXTPA:ALVGO)€2.92€5.8149.8%

Click here to see the full list of 890 stocks from our Undervalued Stocks Based On Cash Flows screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Lectra (ENXTPA:LSS)

Overview: Lectra SA offers industrial intelligence solutions for the fashion, automotive, and furniture markets across Northern Europe, Southern Europe, the Americas, and the Asia Pacific with a market cap of €1.02 billion.

Operations: Revenue segments for Lectra include €172.19 million from the Americas and €124.33 million from the Asia-Pacific region.

Estimated Discount To Fair Value: 33.7%

Lectra is trading at €26.85, significantly below its estimated fair value of €40.53, presenting a potential opportunity based on cash flow valuation. Despite a decline in net income to €22.77 million for the first nine months of 2024, earnings are forecast to grow by over 25% annually, outpacing the French market's growth rate. However, revenue growth is moderate at 5.6%, and return on equity is expected to remain low at 12.1%.

ENXTPA:LSS Discounted Cash Flow as at Jan 2025
ENXTPA:LSS Discounted Cash Flow as at Jan 2025

Türkiye Sise Ve Cam Fabrikalari (IBSE:SISE)

Overview: Türkiye Sise Ve Cam Fabrikalari A.S. is a company that manufactures and sells glass products across Turkey, the United States, Russia, Ukraine, Georgia, Europe, and other international markets with a market cap of TRY128.29 billion.

Operations: The company's revenue segments include Energy (TRY17.19 billion), Chemicals (TRY32.58 billion), Glass Packaging (TRY26.02 billion), Industrial Glasses (TRY14.38 billion), Architectural Glasses (TRY30.33 billion), and Glass Household Goods (TRY15.95 billion).

Estimated Discount To Fair Value: 48.1%

Türkiye Sise Ve Cam Fabrikalari is trading at TRY41.88, significantly below its estimated fair value of TRY80.64, highlighting potential undervaluation based on cash flow analysis. Despite a decline in sales for the third quarter of 2024 to TRY42.87 billion from TRY46.19 billion a year ago, earnings are expected to grow by over 40% annually, surpassing the Turkish market's growth rate. However, return on equity is projected to remain low at 9.1%.

IBSE:SISE Discounted Cash Flow as at Jan 2025
IBSE:SISE Discounted Cash Flow as at Jan 2025

Triple Flag Precious Metals (TSX:TFPM)

Overview: Triple Flag Precious Metals Corp. is a streaming and royalty company focused on acquiring and managing precious metals interests across various countries, with a market cap of CA$4.40 billion.

Operations: The company generates revenue of $246.52 million from its operations in acquiring and managing high-quality streams and royalties related to precious metals.

Estimated Discount To Fair Value: 38.9%

Triple Flag Precious Metals is trading at CA$21.92, well below its estimated fair value of CA$35.86, suggesting undervaluation based on cash flows. Despite significant insider selling recently, the company forecasts strong revenue growth of 12.1% annually and expects profitability within three years. Recent earnings show improvement with a net income of US$29.65 million in Q3 2024 compared to a loss last year, alongside an active share buyback program enhancing shareholder value.

TSX:TFPM Discounted Cash Flow as at Jan 2025
TSX:TFPM Discounted Cash Flow as at Jan 2025

Where To Now?

  • Dive into all 890 of the Undervalued Stocks Based On Cash Flows we have identified here.
  • Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance.
  • Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets.

Interested In Other Possibilities?

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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