Stock Analysis

February 2025 Value Stocks With Estimated Discounts For Savvy Investors

OM:SWEC B
Source: Shutterstock

As global markets navigate a complex landscape marked by fluctuating interest rates and geopolitical tensions, investors are keeping a close eye on the performance of major indices. Despite recent volatility, particularly in the technology sector due to competitive pressures from new AI developments, there remain opportunities for those seeking value in undervalued stocks. In this environment, identifying stocks that offer intrinsic value at discounted prices can be key for investors aiming to capitalize on market inefficiencies.

Top 10 Undervalued Stocks Based On Cash Flows

NameCurrent PriceFair Value (Est)Discount (Est)
Alltop Technology (TPEX:3526)NT$264.50NT$527.6249.9%
Sichuan Injet Electric (SZSE:300820)CN¥50.58CN¥100.7049.8%
Gaming Realms (AIM:GMR)£0.358£0.7149.7%
GlobalData (AIM:DATA)£1.78£3.5549.9%
Zhaojin Mining Industry (SEHK:1818)HK$12.14HK$24.1549.7%
Bufab (OM:BUFAB)SEK467.40SEK928.9649.7%
GemPharmatech (SHSE:688046)CN¥13.06CN¥25.9449.7%
Prodways Group (ENXTPA:PWG)€0.576€1.1549.8%
South32 (ASX:S32)A$3.36A$6.7049.8%
Gold Royalty (NYSEAM:GROY)US$1.32US$2.6349.9%

Click here to see the full list of 919 stocks from our Undervalued Stocks Based On Cash Flows screener.

Let's take a closer look at a couple of our picks from the screened companies.

Maire (BIT:MAIRE)

Overview: Maire S.p.A. develops and implements solutions for the energy transition, with a market cap of €3.11 billion.

Operations: The company's revenue segments consist of Integrated E&C Solutions generating €4.98 billion and Sustainable Technology Solutions contributing €321.47 million.

Estimated Discount To Fair Value: 30.9%

Maire is trading at €9.52, significantly below its estimated fair value of €13.77, indicating it could be undervalued based on cash flows. Despite an unstable dividend track record, Maire's earnings are forecast to grow 14.3% annually, outpacing the Italian market's 6.8%. Revenue growth is projected at 10.9% per year, higher than the local market average of 4.2%. Recent presentations at key conferences underscore its active engagement with investors and stakeholders.

BIT:MAIRE Discounted Cash Flow as at Feb 2025
BIT:MAIRE Discounted Cash Flow as at Feb 2025

Sweco (OM:SWEC B)

Overview: Sweco AB (publ) is a global provider of architecture and engineering consultancy services with a market cap of SEK62.47 billion.

Operations: Sweco's revenue segments include SEK8.88 billion from Sweden, SEK3.99 billion from Belgium, SEK3.48 billion from Norway, SEK3.62 billion from Finland, SEK3.38 billion from Denmark, SEK3.28 billion from the Netherlands, SEK2.78 billion from Germany & Central Europe, and SEK1.48 billion from the UK.

Estimated Discount To Fair Value: 23.6%

Sweco, trading at SEK173.7, is priced below its fair value estimate of SEK227.38 by over 23%, highlighting potential undervaluation based on cash flows. Earnings are projected to grow at 16.2% annually, surpassing the Swedish market's growth rate of 13.4%. Recent strategic agreements with Danish and Norwegian partners bolster Sweco's position in renewable energy and infrastructure projects, potentially enhancing future revenue streams despite an unstable dividend history.

OM:SWEC B Discounted Cash Flow as at Feb 2025
OM:SWEC B Discounted Cash Flow as at Feb 2025

Eastroc Beverage(Group) (SHSE:605499)

Overview: Eastroc Beverage(Group) Co., Ltd. is involved in the research, development, production, and sales of beverages in China with a market cap of CN¥126.44 billion.

Operations: The company generates revenue of CN¥15.18 billion from its production, sales, and wholesale of beverages and pre-packaged foods in China.

Estimated Discount To Fair Value: 25.2%

Eastroc Beverage is trading at CN¥243.15, significantly below its estimated fair value of CN¥325.2, suggesting undervaluation based on cash flows. Earnings are expected to grow significantly over the next three years, with a forecasted annual growth rate of 25.1%, outpacing the Chinese market's average. Revenue growth is projected at 23.1% annually, exceeding both market expectations and the company's past performance despite an unstable dividend history.

SHSE:605499 Discounted Cash Flow as at Feb 2025
SHSE:605499 Discounted Cash Flow as at Feb 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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About OM:SWEC B

Sweco

Provides architecture and engineering consultancy services worldwide.

Flawless balance sheet with reasonable growth potential and pays a dividend.

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