3 SGX Stocks Estimated To Be Trading Up To 41.3% Below Intrinsic Value

The Singapore market has been experiencing notable movements, with indices reflecting a mix of cautious optimism and strategic positioning amid global economic shifts. In such an environment, identifying undervalued stocks that trade below their intrinsic value can present significant opportunities for investors seeking to capitalize on potential growth.

Top 5 Undervalued Stocks Based On Cash Flows In Singapore

Name	Current Price	Fair Value (Est)	Discount (Est)
Singapore Technologies Engineering (SGX:S63)	SGD4.76	SGD7.36	35.3%
Nanofilm Technologies International (SGX:MZH)	SGD0.835	SGD1.43	41.7%
Digital Core REIT (SGX:DCRU)	US$0.625	US$0.83	24.7%
Seatrium (SGX:5E2)	SGD1.74	SGD2.96	41.3%
Frasers Logistics & Commercial Trust (SGX:BUOU)	SGD1.18	SGD1.60	26.1%

Click here to see the full list of 5 stocks from our Undervalued SGX Stocks Based On Cash Flows screener.

Let's uncover some gems from our specialized screener.

Seatrium (SGX:5E2)

Overview: Seatrium Limited offers engineering solutions to the offshore, marine, and energy industries and has a market cap of SGD5.91 billion.

Operations: The company's revenue segments include Ship Chartering at SGD24.71 million and Rigs & Floaters, Repairs & Upgrades, Offshore Platforms, and Specialised Shipbuilding at SGD8.39 billion.

Estimated Discount To Fair Value: 41.3%

Seatrium Limited has demonstrated strong project execution capabilities, recently delivering a jackup rig ahead of schedule. The company reported significant earnings improvement for H1 2024, with net income of S$35.97 million compared to a loss the previous year. Trading at 41.3% below its estimated fair value of S$2.96 and with forecasted annual profit growth above market rates, Seatrium appears undervalued based on cash flows despite slower revenue growth projections.

• Our earnings growth report unveils the potential for significant increases in Seatrium's future results.
• Click here and access our complete balance sheet health report to understand the dynamics of Seatrium.

Frasers Logistics & Commercial Trust (SGX:BUOU)

Overview: Frasers Logistics & Commercial Trust (SGX:BUOU) is a Singapore-listed real estate investment trust with a portfolio of 107 industrial and commercial properties valued at approximately S$6.4 billion, diversified across Australia, Germany, Singapore, the United Kingdom and the Netherlands, and has a market cap of S$4.43 billion.

Operations: FLCT generates revenue through its diversified portfolio of 107 industrial and commercial properties located in Australia, Germany, Singapore, the United Kingdom, and the Netherlands.

Estimated Discount To Fair Value: 26.1%

Frasers Logistics & Commercial Trust is trading at S$1.18, significantly below its estimated fair value of S$1.60, indicating potential undervaluation based on cash flows. Despite a low forecasted return on equity of 5.8% in three years and an unstable dividend track record, the trust's earnings are expected to grow 39.43% annually, outpacing the market average with revenue growth projected at 6.3% per year, faster than the Singapore market’s 3.6%.

• The analysis detailed in our Frasers Logistics & Commercial Trust growth report hints at robust future financial performance.
• Click here to discover the nuances of Frasers Logistics & Commercial Trust with our detailed financial health report.

Singapore Technologies Engineering (SGX:S63)

Overview: Singapore Technologies Engineering Ltd is a global technology, defence, and engineering company with a market cap of SGD14.84 billion.

Operations: The company generates revenue through three main segments: Commercial Aerospace (SGD4.34 billion), Urban Solutions & Satcom (SGD2.01 billion), and Defence & Public Security (SGD4.54 billion).

Estimated Discount To Fair Value: 35.3%

Singapore Technologies Engineering (ST Engineering) is trading at S$4.76, significantly below its estimated fair value of S$7.36, suggesting it may be undervalued based on cash flows. The company's revenue and earnings are forecast to grow faster than the Singapore market at 6.4% and 11.2% per year, respectively. Recent strategic alliances in quantum-secure communications further bolster its growth prospects, although debt coverage by operating cash flow remains a concern.

• Our growth report here indicates Singapore Technologies Engineering may be poised for an improving outlook.
• Click to explore a detailed breakdown of our findings in Singapore Technologies Engineering's balance sheet health report.

Seize The Opportunity

• Embark on your investment journey to our 5 Undervalued SGX Stocks Based On Cash Flows selection here.
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Seeking Other Investments?

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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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