The Singapore stock market has been navigating a complex landscape, influenced by global economic shifts and technological advancements. In this environment, identifying undervalued stocks can provide investors with opportunities to capitalize on potential market inefficiencies. This article will explore three SGX value stocks that are estimated to be trading at discounts in September 2024, offering insights into their potential for growth amidst current market conditions.
Top 5 Undervalued Stocks Based On Cash Flows In Singapore
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Singapore Technologies Engineering (SGX:S63) | SGD4.40 | SGD7.37 | 40.3% |
| LHN (SGX:41O) | SGD0.335 | SGD0.41 | 18.9% |
| Digital Core REIT (SGX:DCRU) | US$0.59 | US$0.82 | 28.3% |
| Frasers Logistics & Commercial Trust (SGX:BUOU) | SGD1.13 | SGD2.17 | 47.9% |
| Nanofilm Technologies International (SGX:MZH) | SGD0.765 | SGD1.42 | 46.3% |
| Seatrium (SGX:5E2) | SGD1.56 | SGD2.90 | 46.3% |
Let's take a closer look at a couple of our picks from the screened companies.
Seatrium (SGX:5E2)
Overview: Seatrium Limited offers engineering solutions to the offshore, marine, and energy industries and has a market cap of SGD5.31 billion.
Operations: Seatrium's revenue segments include Ship Chartering, which generated SGD24.71 million, and Rigs & Floaters, Repairs & Upgrades, Offshore Platforms, and Specialised Shipbuilding contributing SGD8.39 billion.
Estimated Discount To Fair Value: 46.3%
Seatrium Limited is trading at S$1.56, significantly below its estimated fair value of S$2.90, suggesting it may be undervalued based on cash flows. The company reported a net income of S$35.97 million for H1 2024 compared to a net loss last year and expects annual earnings growth of 75.55%. Recent successful project completions and share buybacks enhance its financial stability despite ongoing regulatory investigations.
- Our comprehensive growth report raises the possibility that Seatrium is poised for substantial financial growth.
- Navigate through the intricacies of Seatrium with our comprehensive financial health report here.
Frasers Logistics & Commercial Trust (SGX:BUOU)
Overview: Frasers Logistics & Commercial Trust (SGX:BUOU) is a Singapore-listed real estate investment trust that manages 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, with a market cap of around S$4.25 billion.
Operations: The company's revenue segments include industrial and commercial properties located in Australia, Germany, Singapore, the United Kingdom, and the Netherlands.
Estimated Discount To Fair Value: 47.9%
Frasers Logistics & Commercial Trust (SGD1.13) trades significantly below its estimated fair value of SGD2.17, 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 by 39.43% annually, with revenue growth projected at 6.3%, outpacing the Singapore market average of 3.7%.
- According our earnings growth report, there's an indication that Frasers Logistics & Commercial Trust might be ready to expand.
- Click here to discover the nuances of Frasers Logistics & Commercial Trust with our detailed financial health report.
Nanofilm Technologies International (SGX:MZH)
Overview: Nanofilm Technologies International Limited, with a market cap of SGD498.07 million, offers nanotechnology solutions across Singapore, China, Japan, and Vietnam.
Operations: The company generates revenue through four main segments: Sydrogen (SGD1.40 million), Nanofabrication (SGD18.37 million), Advanced Materials (SGD153.32 million), and Industrial Equipment (SGD28.71 million).
Estimated Discount To Fair Value: 46.3%
Nanofilm Technologies International (SGD0.77) appears undervalued, trading below its estimated fair value of SGD1.42. Despite a net loss of SGD 3.74 million for H1 2024, improved from a year ago, the company anticipates higher revenues and profits in H2 2024 if no major disruptions occur. Recent board changes and an interim dividend declaration indicate active management and shareholder returns focus, although profit margins have decreased from last year’s figures.
- The analysis detailed in our Nanofilm Technologies International growth report hints at robust future financial performance.
- Unlock comprehensive insights into our analysis of Nanofilm Technologies International stock in this financial health report.
Key Takeaways
- Click through to start exploring the rest of the 3 Undervalued SGX Stocks Based On Cash Flows now.
- Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
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Contemplating Other Strategies?
- 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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About SGX:5E2
Seatrium
Provides engineering solutions to the offshore, marine, and energy industries.
Excellent balance sheet and good value.
