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

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

Name	Current Price	Fair Value (Est)	Discount (Est)
Singapore Technologies Engineering (SGX:S63)	SGD4.42	SGD7.35	39.9%
LHN (SGX:41O)	SGD0.335	SGD0.41	18.9%
Digital Core REIT (SGX:DCRU)	US$0.59	US$0.82	28.2%
Frasers Logistics & Commercial Trust (SGX:BUOU)	SGD1.12	SGD2.16	48.2%
Nanofilm Technologies International (SGX:MZH)	SGD0.78	SGD1.42	45.2%
Seatrium (SGX:5E2)	SGD1.57	SGD2.90	45.9%

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.

• Insights from our recent growth report point to a promising forecast for Seatrium's business outlook.
• Click to explore a detailed breakdown of our findings in Seatrium's balance sheet health report.

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.

• Upon reviewing our latest growth report, Frasers Logistics & Commercial Trust's projected financial performance appears quite optimistic.
• Delve into the full analysis health report here for a deeper understanding of Frasers Logistics & Commercial Trust.

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.

• In light of our recent growth report, it seems possible that Nanofilm Technologies International's financial performance will exceed current levels.
• Dive into the specifics of Nanofilm Technologies International here with our thorough financial health report.

Key Takeaways

• Click this link to deep-dive into the 6 companies within our Undervalued SGX Stocks Based On Cash Flows screener.
• Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance.
• Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

Want To Explore Some Alternatives?

• 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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