Seatrium And 2 Other Stocks On SGX That Might Be Trading Below Intrinsic Value

The Singapore stock market has been navigating a landscape shaped by new legislative measures aimed at curbing financial scams, reflecting the government's proactive stance on safeguarding investor interests. Amid these developments, identifying undervalued stocks becomes crucial for investors seeking opportunities that may offer significant long-term value.

Top 5 Undervalued Stocks Based On Cash Flows In Singapore

Name	Current Price	Fair Value (Est)	Discount (Est)
Singapore Technologies Engineering (SGX:S63)	SGD4.47	SGD7.33	39%
LHN (SGX:41O)	SGD0.335	SGD0.41	18.7%
Digital Core REIT (SGX:DCRU)	US$0.60	US$0.83	27.3%
Frasers Logistics & Commercial Trust (SGX:BUOU)	SGD1.11	SGD2.16	48.6%
Nanofilm Technologies International (SGX:MZH)	SGD0.77	SGD1.42	45.6%
Seatrium (SGX:5E2)	SGD1.55	SGD2.88	46.1%

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

Let's explore several standout options from the results in the screener.

Seatrium (SGX:5E2)

Overview: Seatrium Limited offers engineering solutions for the offshore, marine, and energy industries with a market cap of SGD5.27 billion.

Operations: 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: 46.1%

Seatrium Limited's recent earnings report shows a significant turnaround with net income of S$35.97 million for H1 2024, compared to a net loss last year. The company successfully delivered its fourth jackup rig ahead of schedule and completed a share buyback program worth S$9.6 million. Despite ongoing regulatory investigations, Seatrium remains highly undervalued based on discounted cash flows, trading at 46% below estimated fair value and with expected revenue growth outpacing the market.

• 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 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, with a market cap of S$4.17 billion.

Operations: FLCT generates revenue from its portfolio of 107 industrial and commercial properties, valued at approximately S$6.4 billion, located in Australia, Germany, Singapore, the United Kingdom and the Netherlands.

Estimated Discount To Fair Value: 48.6%

Frasers Logistics & Commercial Trust is trading at S$1.11, significantly below its estimated fair value of S$2.16, making it highly undervalued based on discounted cash flows. The trust's revenue is forecast to grow 6.3% annually, outpacing the broader Singapore market's 3.7%. Although it has an unstable dividend track record and debt not well covered by operating cash flow, earnings are expected to grow 39.43% per year and become profitable within three years.

• The analysis detailed in our Frasers Logistics & Commercial Trust growth report hints at robust future financial performance.
• Click to explore a detailed breakdown of our findings in Frasers Logistics & Commercial Trust's balance sheet health report.

Nanofilm Technologies International (SGX:MZH)

Overview: Nanofilm Technologies International Limited, with a market cap of SGD501.33 million, offers nanotechnology solutions across 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: 45.6%

Nanofilm Technologies International appears undervalued based on discounted cash flows, trading at S$0.77 against an estimated fair value of S$1.42. Despite a net loss of S$3.74 million for the half year ended June 30, 2024, revenues increased to S$82.65 million from last year's S$73.15 million. The company forecasts higher second-half earnings and anticipates full-year earnings comparable to 2023's S$3 million, though below the previous year's second-half performance.

• Our comprehensive growth report raises the possibility that Nanofilm Technologies International is poised for substantial financial growth.
• Navigate through the intricacies of Nanofilm Technologies International with our comprehensive financial health report here.

Key Takeaways

• Reveal the 6 hidden gems among our Undervalued SGX Stocks Based On Cash Flows screener with a single click here.
• Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
• Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.

Curious About Other Options?

• 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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