Seatrium And 2 More SGX Stocks That May Offer Value

The Singapore market has been navigating a complex global landscape, with recent fluctuations in oil prices and safe-haven assets reflecting broader geopolitical tensions and economic uncertainties. Amidst this backdrop, identifying undervalued stocks can be crucial for investors seeking opportunities for potential growth. In this article, we explore Seatrium and two other SGX stocks that may offer value in the current market environment.

Top 5 Undervalued Stocks Based On Cash Flows In Singapore

Name	Current Price	Fair Value (Est)	Discount (Est)
Singapore Technologies Engineering (SGX:S63)	SGD4.64	SGD7.30	36.5%
Digital Core REIT (SGX:DCRU)	US$0.61	US$0.83	26.1%
Nanofilm Technologies International (SGX:MZH)	SGD0.85	SGD1.43	40.5%
Frasers Logistics & Commercial Trust (SGX:BUOU)	SGD1.16	SGD1.59	27.1%
Seatrium (SGX:5E2)	SGD1.79	SGD2.97	39.8%

Click here to see the full list of 5 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 to the offshore, marine, and energy industries, with a market cap of SGD6.08 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: 39.8%

Seatrium Limited is trading at 39.8% below its estimated fair value of S$2.97, with current price at S$1.79, indicating significant undervaluation based on cash flows. The company reported a net income of S$35.97 million for H1 2024, reversing a loss from the previous year, and completed a share buyback worth S$9.6 million in June 2024. Analysts forecast earnings to grow by 75.55% annually over the next three years, outpacing the market growth rate.

• Insights from our recent growth report point to a promising forecast for Seatrium's business outlook.
• Unlock comprehensive insights into our analysis of Seatrium stock in this financial health report.

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 $790.90 million.

Operations: Digital Core REIT generates $70.76 million from its commercial data centre operations.

Estimated Discount To Fair Value: 26.1%

Digital Core REIT is trading at US$0.61, 26.1% below its estimated fair value of US$0.83, highlighting significant undervaluation based on cash flows. Despite a recent decrease in revenue to US$48.26 million for H1 2024 from US$53.39 million a year ago, net income more than doubled to US$18.63 million from US$9.07 million previously reported, suggesting strong profitability potential as earnings are forecasted to grow by 96% annually over the next three years.

• The growth report we've compiled suggests that Digital Core REIT's future prospects could be on the up.
• Dive into the specifics of Digital Core REIT here with our thorough financial health report.

Nanofilm Technologies International (SGX:MZH)

Overview: Nanofilm Technologies International Limited, with a market cap of SGD553.42 million, offers nanotechnology solutions across Singapore, China, Japan, and Vietnam.

Operations: Nanofilm Technologies International Limited generates revenue from 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: 40.5%

Nanofilm Technologies International reported H1 2024 sales of S$82.65 million, up from S$73.15 million year-over-year, but faced a net loss of S$3.74 million, improved from a prior loss of S$7.65 million. Despite lower profit margins and recent executive changes, the company is trading at a significant discount to its estimated fair value (S$0.85 vs. S$1.43), indicating potential undervaluation based on cash flows with forecasted earnings growth of 54% annually over the next three years.

• Our expertly prepared growth report on Nanofilm Technologies International implies its future financial outlook may be stronger than recent results.
• Get an in-depth perspective on Nanofilm Technologies International's balance sheet by reading our health report here.

Summing It All Up

• Explore the 5 names from our Undervalued SGX Stocks Based On Cash Flows screener here.
• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
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Seeking Other Investments?

• 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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