January 2025's Trio Of Stocks Estimated To Be Below Fair Value

As global markets continue to navigate the implications of recent U.S. policy shifts and heightened enthusiasm for artificial intelligence, major indices like the S&P 500 have reached record highs, reflecting investor optimism despite uncertainties in trade policies and economic forecasts. In this environment, identifying stocks that are perceived to be undervalued can offer potential opportunities for investors looking to capitalize on market inefficiencies.

Top 10 Undervalued Stocks Based On Cash Flows

Name	Current Price	Fair Value (Est)	Discount (Est)
Subros (BSE:517168)	₹600.55	₹1196.98	49.8%
Round One (TSE:4680)	¥1354.00	¥2558.59	47.1%
Sichuan Injet Electric (SZSE:300820)	CN¥50.58	CN¥101.14	50%
GlobalData (AIM:DATA)	£1.785	£3.57	49.9%
74Software (ENXTPA:74SW)	€26.50	€52.93	49.9%
Solum (KOSE:A248070)	₩18950.00	₩37697.69	49.7%
Fine Foods & Pharmaceuticals N.T.M (BIT:FF)	€6.76	€13.46	49.8%
GemPharmatech (SHSE:688046)	CN¥13.06	CN¥26.01	49.8%
Cavotec (OM:CCC)	SEK20.00	SEK39.86	49.8%
Netum Group Oyj (HLSE:NETUM)	€2.82	€5.63	49.9%

Click here to see the full list of 896 stocks from our Undervalued Stocks Based On Cash Flows screener.

Here we highlight a subset of our preferred stocks from the screener.

Atea (OB:ATEA)

Overview: Atea ASA offers IT infrastructure and related solutions to businesses and public sector organizations in the Nordic countries and Baltic regions, with a market cap of NOK15.18 billion.

Operations: The company's revenue is segmented as follows: Norway contributes NOK8.28 billion, Sweden NOK12.44 billion, Denmark NOK7.37 billion, Finland NOK3.62 billion, the Baltics NOK1.76 billion, and Group Shared Services account for NOK9.20 billion.

Estimated Discount To Fair Value: 43.4%

Atea is trading at NOK137.8, significantly undervalued compared to its estimated fair value of NOK243.55, presenting a potential opportunity for investors focused on cash flow valuation. With revenue forecasted to grow at 8.3% annually—outpacing the Norwegian market's 2% growth—and earnings expected to rise by 18.9%, Atea shows promising financial momentum despite its dividend not being well covered by earnings currently.

• In light of our recent growth report, it seems possible that Atea's financial performance will exceed current levels.
• Dive into the specifics of Atea here with our thorough financial health report.

Tabuk Cement (SASE:3090)

Overview: Tabuk Cement Company manufactures and sells cement in the Kingdom of Saudi Arabia with a market cap of SAR1.26 billion.

Operations: The company's revenue is derived entirely from the sale of packed and unpackaged cement, amounting to SAR328.89 million.

Estimated Discount To Fair Value: 48%

Tabuk Cement, trading at SAR13.98, is significantly undervalued compared to its estimated fair value of SAR26.86. Despite a low forecasted return on equity of 7.1%, the company's earnings are expected to grow significantly at 21.6% annually, surpassing the SA market's growth rate of 5.9%. Recent earnings report shows net income of SAR23.05 million for Q3 2024, although its dividend track record remains unstable.

• According our earnings growth report, there's an indication that Tabuk Cement might be ready to expand.
• Click here and access our complete balance sheet health report to understand the dynamics of Tabuk Cement.

IG Port (TSE:3791)

Overview: IG Port, Inc., along with its subsidiaries, is engaged in animation production both in Japan and internationally, with a market cap of ¥42.11 billion.

Operations: Revenue Segments (in millions of ¥): Animation Production: ¥10,500; Content Distribution: ¥2,300; Merchandising: ¥1,200; Licensing and Other Rights: ¥800. IG Port generates its revenue through animation production, content distribution, merchandising, and licensing and other rights.

Estimated Discount To Fair Value: 38.3%

IG Port, trading at ¥2192, is undervalued relative to its estimated fair value of ¥3550.61. The company's earnings are projected to grow significantly at 25% annually, outpacing the JP market's growth rate of 8.2%. Despite high share price volatility and a low forecasted return on equity of 18.7%, revenue is expected to increase by 7.3% per year, supported by robust cash flow metrics and strong profit growth forecasts.

• The analysis detailed in our IG Port growth report hints at robust future financial performance.
• Navigate through the intricacies of IG Port with our comprehensive financial health report here.

Turning Ideas Into Actions

• Delve into our full catalog of 896 Undervalued Stocks Based On Cash Flows here.
• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
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Looking For Alternative Opportunities?

• 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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