Stock Analysis

SeSa And 2 Other Stocks That May Be Priced Below Estimated Value

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As global markets show signs of recovery with major U.S. indexes nearing record highs and positive economic indicators like falling jobless claims, investors are increasingly on the lookout for stocks that may be undervalued amidst this optimism. In such a climate, identifying stocks priced below their estimated value can offer potential opportunities for growth, making it crucial to focus on fundamental strengths and market positioning.

Top 10 Undervalued Stocks Based On Cash Flows

NameCurrent PriceFair Value (Est)Discount (Est)
Victory Capital Holdings (NasdaqGS:VCTR)US$72.24US$144.0349.8%
NBT Bancorp (NasdaqGS:NBTB)US$50.12US$99.9349.8%
Synovus Financial (NYSE:SNV)US$57.97US$115.6749.9%
CS Wind (KOSE:A112610)₩42100.00₩83493.5749.6%
Tongqinglou Catering (SHSE:605108)CN¥21.71CN¥43.3749.9%
Intermedical Care and Lab Hospital (SET:IMH)THB4.94THB9.8549.8%
EuroGroup Laminations (BIT:EGLA)€2.728€5.4249.7%
Nidaros Sparebank (OB:NISB)NOK100.00NOK198.6249.7%
Nutanix (NasdaqGS:NTNX)US$72.35US$143.9949.8%
VerticalScope Holdings (TSX:FORA)CA$9.01CA$18.0150%

Click here to see the full list of 916 stocks from our Undervalued Stocks Based On Cash Flows screener.

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

SeSa (BIT:SES)

Overview: SeSa S.p.A., along with its subsidiaries, distributes value-added IT software and technologies both in Italy and internationally, with a market cap of €1.19 billion.

Operations: The company's revenue segments include Business Services at €114.50 million, Corporate Segment at €50.10 million, and Software and System Integration at €844.70 million.

Estimated Discount To Fair Value: 48.8%

SeSa S.p.A. appears undervalued, trading at €77.15, significantly below its estimated fair value of €150.73 and 48.8% under our fair value estimate, indicating a strong relative value compared to peers and industry standards. Despite modest Q1 earnings of €21.25 million slightly down from the previous year, SeSa's revenue is projected to grow at 9.6% annually, outpacing the Italian market's 4%, with earnings growth forecasted at 13.8% per year.

BIT:SES Discounted Cash Flow as at Nov 2024

Jamieson Wellness (TSX:JWEL)

Overview: Jamieson Wellness Inc. is a company that develops, manufactures, distributes, markets, and sells branded and customer-branded health products for humans in Canada, the United States, China, and internationally with a market cap of CA$1.53 billion.

Operations: The company's revenue segments consist of CA$607.13 million from Jamieson Brands and CA$102.23 million from Strategic Partners.

Estimated Discount To Fair Value: 36.7%

Jamieson Wellness is trading at CA$36.46, well below its estimated fair value of CA$57.58, suggesting it may be undervalued based on cash flows. Despite debt not being fully covered by operating cash flow, earnings are forecast to grow significantly at 61.8% annually over the next three years, outpacing the Canadian market's growth rate. Recent third-quarter sales increased to CA$176.16 million from last year's CA$151.51 million, with net income rising to CA$10.56 million from CA$8.22 million a year ago.

TSX:JWEL Discounted Cash Flow as at Nov 2024

NEUCA (WSE:NEU)

Overview: NEUCA S.A. is involved in the wholesale distribution of pharmaceuticals in Poland, with a market capitalization of PLN3.49 billion.

Operations: The company's revenue segments include Pharmaceutical Wholesale (Including Marketing Services) at PLN11.35 billion, Clinical Studies generating PLN438.30 million, Medical Operator contributing PLN435.48 million, Insurance Business with PLN179.83 million, and Pharmaceutical Manufacturing at PLN387.67 million.

Estimated Discount To Fair Value: 39.9%

NEUCA is trading at PLN 781, significantly below its estimated fair value of PLN 1,299.75, highlighting its potential undervaluation based on cash flows. Despite a modest revenue growth forecast of 4.4% annually, earnings are expected to grow substantially at 25.6% per year over the next three years, surpassing the Polish market's growth rate. Recent third-quarter results show sales increased to PLN 3.19 billion from last year's PLN 2.97 billion, while net income decreased slightly to PLN 41.87 million from PLN 45.09 million a year ago.

WSE:NEU Discounted Cash Flow as at Nov 2024

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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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