KRX Stocks That Could Be Trading Below Their Intrinsic Value Estimates

Over the last 7 days, the South Korean market has risen 2.5%, driven by gains in every sector, though it has remained flat over the past 12 months. With earnings forecast to grow by 29% annually, identifying stocks that are trading below their intrinsic value could present significant opportunities for investors.

Top 10 Undervalued Stocks Based On Cash Flows In South Korea

Name	Current Price	Fair Value (Est)	Discount (Est)
VIOL (KOSDAQ:A335890)	₩9080.00	₩17724.15	48.8%
T'Way Air (KOSE:A091810)	₩3005.00	₩5719.81	47.5%
APR (KOSE:A278470)	₩284500.00	₩518230.08	45.1%
Cosmecca Korea (KOSDAQ:A241710)	₩87000.00	₩151868.61	42.7%
ABCO Electronics (KOSDAQ:A036010)	₩5840.00	₩11530.81	49.4%
Oscotec (KOSDAQ:A039200)	₩35750.00	₩65583.14	45.5%
Intellian Technologies (KOSDAQ:A189300)	₩50200.00	₩90967.36	44.8%
Shinsung E&GLtd (KOSE:A011930)	₩1644.00	₩2982.35	44.9%
Global Tax Free (KOSDAQ:A204620)	₩3580.00	₩6404.91	44.1%
Hotel ShillaLtd (KOSE:A008770)	₩44900.00	₩81175.76	44.7%

Click here to see the full list of 35 stocks from our Undervalued KRX Stocks Based On Cash Flows screener.

We're going to check out a few of the best picks from our screener tool.

ISC (KOSDAQ:A095340)

Overview: ISC Co., Ltd. develops, manufactures, and sells semiconductor test sockets worldwide with a market cap of ₩1.07 trillion.

Operations: Revenue from semiconductor equipment and services amounts to ₩142.69 billion.

Estimated Discount To Fair Value: 11.4%

ISC Co., Ltd. is trading at ₩52,100, which is 11.4% below its estimated fair value of ₩58,808.02, indicating it may be undervalued based on cash flows. The company's earnings are forecast to grow significantly at 32.27% annually, outpacing the KR market's growth rate of 28.7%. Recent earnings reports show strong performance with Q2 sales increasing from ₩35,979.81 million to ₩49,758.43 million and net income rising substantially from ₩4,868.4 million to ₩15,967.31 million year-over-year despite recent shareholder dilution concerns.

• Our expertly prepared growth report on ISC implies its future financial outlook may be stronger than recent results.
• Unlock comprehensive insights into our analysis of ISC stock in this financial health report.

VIOL (KOSDAQ:A335890)

Overview: Viol Co., Ltd. manufactures electrical diagnostics and medical devices, with a market cap of ₩524.31 billion.

Operations: The company's revenue segment is primarily derived from its Medical Device Business, generating ₩35.49 billion.

Estimated Discount To Fair Value: 48.8%

VIOL is currently trading at ₩9080, significantly below its estimated fair value of ₩17724.15, suggesting it is highly undervalued based on cash flows. The company's revenue is forecast to grow at 28.1% per year, outpacing the KR market's 10.1%. Earnings are expected to grow by 28.09% annually over the next three years, although this is slightly slower than the overall market's growth rate of 28.7%.

• The analysis detailed in our VIOL growth report hints at robust future financial performance.
• Click to explore a detailed breakdown of our findings in VIOL's balance sheet health report.

NEXTIN (KOSDAQ:A348210)

Overview: NEXTIN, Inc. manufactures defect inspection and metrology systems for semiconductor and display industries in South Korea, with a market cap of ₩453.73 billion.

Operations: Revenue from semiconductor equipment and services amounts to ₩81.68 billion.

Estimated Discount To Fair Value: 32.3%

NEXTIN, Inc. is trading at ₩44200, which is 32.3% below its estimated fair value of ₩65321.83, indicating it is undervalued based on cash flows. The company has initiated a share repurchase program to stabilize its stock price and enhance shareholder value. Despite recent earnings declines, NEXTIN's revenue and earnings are forecast to grow significantly at 31.8% and 34.86% per year respectively, outpacing the market's growth rates in South Korea.

• Our earnings growth report unveils the potential for significant increases in NEXTIN's future results.
• Delve into the full analysis health report here for a deeper understanding of NEXTIN.

Key Takeaways

• Click here to access our complete index of 35 Undervalued KRX Stocks Based On Cash Flows.
• Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
• Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

Interested In Other Possibilities?

• 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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