Stock Analysis

3 SGX Stocks Trading At Up To 48.2% Below Intrinsic Value Estimates

SGX:BUOU
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The Singapore market has been experiencing a period of cautious optimism, with investors closely monitoring economic indicators and corporate earnings. In this environment, identifying undervalued stocks becomes crucial for those looking to capitalize on potential growth opportunities.

Top 5 Undervalued Stocks Based On Cash Flows In Singapore

NameCurrent PriceFair Value (Est)Discount (Est)
Singapore Technologies Engineering (SGX:S63)SGD4.42SGD7.3539.9%
LHN (SGX:41O)SGD0.335SGD0.4118.9%
Digital Core REIT (SGX:DCRU)US$0.59US$0.8228.2%
Frasers Logistics & Commercial Trust (SGX:BUOU)SGD1.12SGD2.1648.2%
Nanofilm Technologies International (SGX:MZH)SGD0.78SGD1.4245.2%
Seatrium (SGX:5E2)SGD1.57SGD2.9045.9%

Click here to see the full list of 6 stocks from our Undervalued SGX Stocks Based On Cash Flows screener.

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

Seatrium (SGX:5E2)

Overview: Seatrium Limited offers engineering solutions to the offshore, marine, and energy industries with a market cap of SGD5.34 billion.

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

Estimated Discount To Fair Value: 45.9%

Seatrium is trading at 45.9% below its estimated fair value of S$2.9, with earnings forecasted to grow 75.55% per year and revenue expected to outpace the market at 7.1% annually. The company recently reported a net income of S$35.97 million for H1 2024, reversing a significant loss from the previous year, and completed a share buyback worth S$9.6 million, enhancing shareholder value despite ongoing regulatory investigations.

SGX:5E2 Discounted Cash Flow as at Sep 2024
SGX:5E2 Discounted Cash Flow as at Sep 2024

Frasers Logistics & Commercial Trust (SGX:BUOU)

Overview: Frasers Logistics & Commercial Trust (SGX:BUOU) is a Singapore-listed real estate investment trust with a market cap of S$4.21 billion, managing a portfolio of 107 industrial and commercial properties valued at approximately S$6.4 billion across Australia, Germany, Singapore, the United Kingdom and the Netherlands.

Operations: FLCT's revenue segments are derived from its portfolio of 107 industrial and commercial properties valued at approximately S$6.4 billion, spread across Australia, Germany, Singapore, the United Kingdom, and the Netherlands.

Estimated Discount To Fair Value: 48.2%

Frasers Logistics & Commercial Trust (FLCT) is trading at S$1.12, significantly below its estimated fair value of S$2.16, indicating a potential undervaluation based on cash flows. The trust's revenue is forecasted to grow at 6.3% annually, outpacing the Singapore market average of 3.8%. However, its debt coverage by operating cash flow remains weak and the dividend track record is unstable. Earnings are expected to grow 39.43% per year, with profitability anticipated within three years.

SGX:BUOU Discounted Cash Flow as at Sep 2024
SGX:BUOU Discounted Cash Flow as at Sep 2024

Nanofilm Technologies International (SGX:MZH)

Overview: Nanofilm Technologies International Limited, with a market cap of SGD507.84 million, provides nanotechnology solutions in Singapore, China, Japan, and Vietnam.

Operations: The company's revenue segments include Sydrogen (SGD1.40 million), Nanofabrication (SGD18.37 million), Advanced Materials (SGD153.32 million), and Industrial Equipment (SGD28.71 million).

Estimated Discount To Fair Value: 45.2%

Nanofilm Technologies International is trading at S$0.78, significantly below its estimated fair value of S$1.42, suggesting it may be undervalued based on cash flows. Despite a net loss of S$3.74 million in H1 2024, the company expects full-year earnings to match 2023's S$3 million, with revenue forecasted to grow faster than the Singapore market at 16.1% annually. Recent board changes and dividend affirmations indicate strategic shifts and shareholder returns focus amidst ongoing financial challenges.

SGX:MZH Discounted Cash Flow as at Sep 2024
SGX:MZH Discounted Cash Flow as at Sep 2024

Key Takeaways

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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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About SGX:BUOU

Frasers Logistics & Commercial Trust

Frasers Logistics & Commercial Trust ("FLCT") is a Singapore-listed real estate investment trust with a portfolio comprising 107 industrial and commercial properties, worth approximately S$6.4 billion, diversified across five major developed markets - Australia, Germany, Singapore, the United Kingdom and the Netherlands.

Reasonable growth potential average dividend payer.