3 SGX Stocks Trading Up To 45.6% Below Intrinsic Value Estimates

The Singapore market has been navigating a period of cautious optimism, with investors closely monitoring global economic developments and their impact on local indices. In this environment, identifying undervalued stocks can provide significant opportunities for long-term growth. A good stock in the current market is one that demonstrates strong fundamentals and is trading below its intrinsic value, offering potential for substantial appreciation as the market corrects itself.

Top 5 Undervalued Stocks Based On Cash Flows In Singapore

Name	Current Price	Fair Value (Est)	Discount (Est)
Singapore Technologies Engineering (SGX:S63)	SGD4.52	SGD7.36	38.6%
Digital Core REIT (SGX:DCRU)	US$0.585	US$0.82	28.8%
Nanofilm Technologies International (SGX:MZH)	SGD0.805	SGD1.43	43.8%
Frasers Logistics & Commercial Trust (SGX:BUOU)	SGD1.15	SGD1.58	27.3%
Seatrium (SGX:5E2)	SGD1.58	SGD2.90	45.6%

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 approximately SGD5.34 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: 45.6%

Seatrium Limited, trading at SGD 1.58, is significantly undervalued compared to its estimated fair value of SGD 2.9. Analysts forecast a robust annual earnings growth rate of 75.55%, with the company expected to become profitable within three years. Recent achievements include the early delivery of a jackup rig and a notable turnaround in net income for H1 2024 (SGD 35.97 million). However, ongoing investigations by Singaporean authorities may pose risks to potential investors.

• Upon reviewing our latest growth report, Seatrium's projected financial performance appears quite optimistic.
• Get an in-depth perspective on Seatrium's balance sheet by reading our health report here.

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$4.32 billion, managing a diversified 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 generates revenue from its diverse portfolio of 107 industrial and commercial properties valued at approximately S$6.4 billion, spanning Australia, Germany, Singapore, the United Kingdom, and the Netherlands.

Estimated Discount To Fair Value: 27.3%

Frasers Logistics & Commercial Trust, trading at SGD 1.15, is undervalued compared to its estimated fair value of SGD 1.58. Analysts forecast annual earnings growth of 39.43%, with revenue expected to grow faster than the SG market at 6.3% per year. Despite an unstable dividend track record and debt not well covered by operating cash flow, the company is projected to become profitable within three years and offers significant upside based on discounted cash flow analysis.

• Our comprehensive growth report raises the possibility that Frasers Logistics & Commercial Trust is poised for substantial financial growth.
• 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 operates as a global technology, defense, and engineering company with a market cap of SGD13.91 billion.

Operations: The company's revenue segments are comprised of Commercial Aerospace (SGD4.34 billion), Urban Solutions & Satcom (SGD2.01 billion), and Defence & Public Security (SGD4.54 billion).

Estimated Discount To Fair Value: 38.6%

Singapore Technologies Engineering (SGD 4.52) is trading at a significant discount to its estimated fair value of SGD 7.36, indicating it may be undervalued based on cash flows. The company reported half-year sales of SGD 5.52 billion and net income of SGD 336.53 million, reflecting solid growth from the previous year. Despite debt concerns, recent strategic alliances in quantum-secure communications and consistent earnings growth forecasted at 11% per year support its potential for long-term value appreciation.

• Insights from our recent growth report point to a promising forecast for Singapore Technologies Engineering's business outlook.
• Dive into the specifics of Singapore Technologies Engineering here with our thorough financial health report.

Where To Now?

• Click this link to deep-dive into the 5 companies within our Undervalued SGX Stocks Based On Cash Flows screener.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
• Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets.

Ready To Venture Into Other Investment Styles?

• 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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