Stock Analysis

3 Value Stocks Including Xi'an Manareco New MaterialsLtd Priced Below Estimated Worth

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As global markets navigate a landscape marked by inflation concerns and political uncertainty, value stocks have shown resilience compared to their growth counterparts. In this environment, identifying undervalued stocks can be particularly rewarding for investors who focus on companies with strong fundamentals that are priced below their estimated worth.

Top 10 Undervalued Stocks Based On Cash Flows

NameCurrent PriceFair Value (Est)Discount (Est)
Hunan Jiudian Pharmaceutical (SZSE:300705)CN¥17.11CN¥34.1749.9%
Türkiye Sise Ve Cam Fabrikalari (IBSE:SISE)TRY39.32TRY78.5950%
Decisive Dividend (TSXV:DE)CA$5.96CA$11.8949.9%
Helens International Holdings (SEHK:9869)HK$1.93HK$3.8549.9%
Elekta (OM:EKTA B)SEK61.10SEK122.0249.9%
Tongqinglou Catering (SHSE:605108)CN¥21.93CN¥43.7849.9%
Meriaura Group Oyj (OM:MERIS)SEK0.49SEK0.9850%
Constellium (NYSE:CSTM)US$10.32US$20.5849.9%
W5 Solutions (OM:W5)SEK47.20SEK93.9649.8%
Andrada Mining (AIM:ATM)£0.0235£0.04749.8%

Click here to see the full list of 870 stocks from our Undervalued Stocks Based On Cash Flows screener.

Let's dive into some prime choices out of the screener.

Xi'an Manareco New MaterialsLtd (SHSE:688550)

Overview: Xi'an Manareco New Materials Co., Ltd specializes in the manufacturing and marketing of liquid crystal materials, OLED materials, and drug intermediates, with a market cap of CN¥5.24 billion.

Operations: The company's revenue from Specialty Chemicals amounts to CN¥1.37 billion.

Estimated Discount To Fair Value: 45.9%

Xi'an Manareco New Materials Ltd. appears undervalued, trading at 45.9% below its estimated fair value of CNY 55.96, with a current price of CNY 30.3. The company reported strong earnings growth of 63.5% year-over-year and is forecast to continue growing earnings by 25% annually, outpacing the Chinese market's average growth rate. Despite a low forecasted return on equity, revenue is expected to grow significantly at an annual rate of 23.9%.

SHSE:688550 Discounted Cash Flow as at Jan 2025

JAPAN MATERIAL (TSE:6055)

Overview: JAPAN MATERIAL Co., Ltd. operates in the electronics and graphics sectors in Japan, with a market cap of ¥184.14 billion.

Operations: The company's revenue is primarily derived from the Electronics segment, which generated ¥46.94 billion, followed by the Graphics Solution Business with ¥1.67 billion and the Solar Power Generation Business contributing ¥205 million.

Estimated Discount To Fair Value: 36%

Japan Material is trading at ¥1,792, significantly below its estimated fair value of ¥2,800.99. The company is expected to see substantial earnings growth of 20.6% annually over the next three years, surpassing the Japanese market's average growth rate. Revenue is also forecast to grow at 14.1% per year but remains below the 20% mark for high growth classification. Despite recent share price volatility and a modest return on equity forecasted at 17.4%, Japan Material presents an opportunity for investors focusing on undervalued stocks based on cash flows due to its current valuation discount and strong projected earnings trajectory.

TSE:6055 Discounted Cash Flow as at Jan 2025

NOMURA (TSE:9716)

Overview: NOMURA Co., Ltd. specializes in research, planning, consulting, design, layout, production and construction, as well as operation and management for space creation both in Japan and internationally, with a market cap of approximately ¥103.63 billion.

Operations: Revenue Segments (in millions of ¥): NOMURA Co., Ltd. derives its revenue from research, planning, consulting, design, layout, production and construction, and operation and management services related to space creation both domestically and internationally.

Estimated Discount To Fair Value: 10.9%

Nomura is trading at ¥929, slightly below its fair value estimate of ¥1,042.7. The company forecasts significant earnings growth of 27.95% annually over the next three years, outpacing the Japanese market's average growth rate. Despite a low return on equity forecasted at 11%, recent upward revisions in earnings guidance and dividend increases highlight positive cash flow prospects, driven by large-scale projects in various markets including urban redevelopment and Expo 2025 Osaka-Kansai initiatives.

TSE:9716 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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