Stock Analysis

3 SGX Stocks Estimated To Be 36.1% To 47.7% Below Their Intrinsic Value

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In recent months, the Singapore stock market has been navigating a complex global landscape marked by geopolitical tensions and economic uncertainties, such as those stemming from the ongoing conflict in Ukraine. Amidst these challenges, investors are increasingly seeking stocks that offer value relative to their intrinsic worth. Identifying undervalued stocks can be crucial for capitalizing on potential growth opportunities, especially when market conditions are influenced by external factors.

Top 5 Undervalued Stocks Based On Cash Flows In Singapore

NameCurrent PriceFair Value (Est)Discount (Est)
Singapore Technologies Engineering (SGX:S63)SGD4.72SGD7.3435.7%
Digital Core REIT (SGX:DCRU)US$0.60US$1.1547.7%
Frasers Logistics & Commercial Trust (SGX:BUOU)SGD1.08SGD1.9845.4%
Nanofilm Technologies International (SGX:MZH)SGD0.83SGD1.4341.9%
Seatrium (SGX:5E2)SGD1.94SGD3.0336.1%

Click here to see the full list of 5 stocks from our Undervalued SGX Stocks Based On Cash Flows screener.

We're going to check out a few of the best picks from our screener tool.

Seatrium (SGX:5E2)

Overview: Seatrium Limited offers engineering solutions to the offshore, marine, and energy industries with a market cap of SGD6.58 billion.

Operations: The company generates revenue primarily from Rigs & Floaters, Repairs & Upgrades, Offshore Platforms, and Specialised Shipbuilding amounting to SGD8.39 billion, along with Ship Chartering contributing SGD24.71 million.

Estimated Discount To Fair Value: 36.1%

Seatrium Limited is trading at a significant discount, approximately 36.1% below its estimated fair value of S$3.03, with current trading around S$1.94. Recent earnings show a turnaround with net income of S$35.97 million compared to a previous loss, and revenue growth outpacing the Singapore market average. The successful early delivery of the Vali rig enhances its reputation for timely project execution, supporting potential future cash flow improvements despite low forecasted return on equity.

SGX:5E2 Discounted Cash Flow as at Oct 2024

Digital Core REIT (SGX:DCRU)

Overview: Digital Core REIT (SGX: DCRU) is a leading pure-play data centre REIT listed in Singapore, sponsored by Digital Realty, with a market cap of $778.87 million.

Operations: Digital Core REIT generates its revenue primarily from leasing data centre facilities.

Estimated Discount To Fair Value: 47.7%

Digital Core REIT is trading at a substantial discount, approximately 47.7% below its estimated fair value of US$1.15, with shares currently around US$0.6. Despite a recent decline in sales to US$71.99 million for the nine months ending September 2024, net income improved to US$23.83 million from the previous year. Analysts anticipate significant earnings growth of 87.26% annually and expect profitability within three years, although past shareholder dilution remains a concern.

SGX:DCRU Discounted Cash Flow as at Oct 2024

Nanofilm Technologies International (SGX:MZH)

Overview: Nanofilm Technologies International Limited offers nanotechnology solutions across Singapore, China, Japan, and Vietnam with a market capitalization of SGD540.39 million.

Operations: The company's revenue is primarily derived from Advanced Materials (SGD153.32 million), followed by Industrial Equipment (SGD28.71 million), Nanofabrication (SGD18.37 million), and Sydrogen (SGD1.40 million).

Estimated Discount To Fair Value: 41.9%

Nanofilm Technologies International is trading at approximately 41.9% below its estimated fair value of SGD 1.43, with current shares around SGD 0.83. Despite a net loss of SGD 3.74 million for the first half of 2024, sales increased to SGD 82.65 million from the previous year. Earnings are forecasted to grow significantly at over 50% annually, outpacing both revenue growth and market expectations in Singapore, though profit margins have decreased compared to last year.

SGX:MZH Discounted Cash Flow as at Oct 2024

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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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