Stock Analysis

BFF Bank And Two More Stocks Considered Below Estimated True Value

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As global markets exhibit a notably broad advance, with indices like the Russell 2000 Index showing significant gains, investors may find opportunities in sectors that are currently undervalued. In such an environment, identifying stocks that are trading below their estimated true value could offer potential for appreciation as market conditions evolve.

Top 10 Undervalued Stocks Based On Cash Flows

NameCurrent PriceFair Value (Est)Discount (Est)
Noble (NYSE:NE)US$46.86US$93.0449.6%
Truecaller (OM:TRUE B)SEK35.40SEK70.7950%
Hanjaya Mandala Sampoerna (IDX:HMSP)IDR745.00IDR1483.4349.8%
Metsä Board Oyj (HLSE:METSB)€7.235€14.4650%
RaySearch Laboratories (OM:RAY B)SEK139.40SEK277.3349.7%
Guerbet (ENXTPA:GBT)€39.65€79.1149.9%
INKON Life Technology (SZSE:300143)CN¥7.39CN¥14.6449.5%
Jiangsu Chuanzhiboke Education Technology (SZSE:003032)CN¥8.70CN¥17.2749.6%
Lumi Gruppen (OB:LUMI)NOK12.90NOK25.7850%
MediaAlpha (NYSE:MAX)US$13.98US$27.7649.6%

Click here to see the full list of 970 stocks from our Undervalued Stocks Based On Cash Flows screener.

Here's a peek at a few of the choices from the screener.

BFF Bank (BIT:BFF)

Overview: BFF Bank S.p.A. offers financial services to suppliers of the national health system and public administration sectors across Italy and several other European countries, with a market capitalization of approximately €2.01 billion.

Operations: The bank's revenue from commercial financial services totals approximately €0.41 billion.

Estimated Discount To Fair Value: 33.1%

BFF Bank, with a recent earnings report showing a net income of €39.31 million, down from €48.4 million last year, still holds potential based on cash flow analysis. Despite the decline, BFF is trading at 33.1% below its estimated fair value and is forecasted to grow earnings by 15.07% annually, outpacing the Italian market's 5.1%. However, its dividend sustainability is questionable as it isn't well covered by earnings or free cash flows. The bank's share price has shown high volatility recently.

BIT:BFF Discounted Cash Flow as at Jul 2024

Military Commercial Bank (HOSE:MBB)

Overview: Military Commercial Joint Stock Bank offers banking services to both organizations and individuals domestically in Vietnam and on an international scale, with a market capitalization of approximately ₫132.13 trillion.

Operations: The bank generates its revenue through a variety of banking services provided to both corporate entities and private individuals across local and international markets.

Estimated Discount To Fair Value: 46.4%

Military Commercial Joint Stock Bank, despite a recent leadership overhaul and significant corporate actions like a VND 20,000 billion bond issuance, remains undervalued based on cash flow analysis. Trading at ₫24,900 against a fair value of ₫46,460.67 reflects a substantial discount. Forecasted revenue growth at 20.3% annually surpasses the Vietnamese market's 16.8%, with earnings expected to expand by 17.35% per year. However, its earnings growth slightly lags behind the broader market forecast of 18.2%.

HOSE:MBB Discounted Cash Flow as at Jul 2024

Saudi Electricity (SASE:5110)

Overview: Saudi Electricity Company, operating in Saudi Arabia, engages in the generation, transmission, and distribution of electricity across various sectors with a market capitalization of approximately SAR 69.83 billion.

Operations: The company generates significant revenue through its primary operations, with SAR 71.69 billion from its core activities and SAR 26.10 billion from the National Grid Company.

Estimated Discount To Fair Value: 23.7%

Saudi Electricity, with a current price of SAR16.8, appears undervalued by over 20%, assessed at a fair value of SAR22.02 based on discounted cash flow analysis. Despite this, challenges persist as the company's return on equity is expected to remain low at 7.3% in three years, and its dividend coverage by earnings and free cash flows is weak. Recent strategic moves include partnering with NAMI to innovate using 3D printing for spare parts production, aiming to cut costs and enhance supply chain efficiency which could support future financial performance.

SASE:5110 Discounted Cash Flow as at Jul 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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