Seatrium And 2 Other Stocks Conceivably Priced Below Intrinsic Value Estimates On SGX

The Singapore market has been navigating a landscape of technological advancements and economic shifts, with significant attention on innovations like AI-driven transactions. In this environment, identifying stocks that are potentially undervalued can provide investors with opportunities to capitalize on intrinsic value estimates that may not yet be fully recognized by the market.

Top 5 Undervalued Stocks Based On Cash Flows In Singapore

Name	Current Price	Fair Value (Est)	Discount (Est)
LHN (SGX:41O)	SGD0.325	SGD0.41	20.8%
Singapore Technologies Engineering (SGX:S63)	SGD4.56	SGD9.00	49.3%
Winking Studios (Catalist:WKS)	SGD0.29	SGD0.55	47%
Digital Core REIT (SGX:DCRU)	US$0.605	US$0.85	28.4%
Seatrium (SGX:5E2)	SGD1.44	SGD2.83	49%

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

Underneath we present a selection of stocks filtered out by our screen.

Seatrium (SGX:5E2)

Overview: Seatrium Limited offers engineering solutions for the offshore, marine, and energy sectors with a market cap of SGD4.90 billion.

Operations: The company generates revenue primarily from Rigs & Floaters, Repairs & Upgrades, Offshore Platforms, and Specialised Shipbuilding (SGD8.39 billion), with additional income from Ship Chartering (SGD24.71 million).

Estimated Discount To Fair Value: 49%

Seatrium is trading at SGD 1.44, significantly below its estimated fair value of SGD 2.83, indicating it may be undervalued based on cash flows. The company reported a net income of SGD 35.97 million for the first half of 2024, reversing a loss from the previous year. Recent successful project completions and new contract awards further bolster its financial outlook, although ongoing regulatory investigations pose potential risks.

• Our growth report here indicates Seatrium may be poised for an improving outlook.
• Delve into the full analysis health report here for a deeper understanding of Seatrium.

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 $786.77 million.

Operations: The company's revenue segment primarily comprises $70.76 million from its commercial REIT operations focused on data centers.

Estimated Discount To Fair Value: 28.4%

Digital Core REIT, trading at US$0.61, is considered undervalued with an estimated fair value of US$0.85. Despite a recent revenue decline to US$48.26 million for the first half of 2024, net income rose to US$18.63 million from US$9.07 million a year ago, indicating strong cash flow management. However, shareholders have faced dilution and dividend payouts have decreased recently, reflecting some instability in returns to investors.

• Our expertly prepared growth report on Digital Core REIT implies its future financial outlook may be stronger than recent results.
• Click here to discover the nuances of Digital Core REIT 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 SGD14.22 billion.

Operations: The company generates revenue primarily from three segments: Commercial Aerospace (SGD4.34 billion), Urban Solutions & Satcom (SGD2.01 billion), and Defence & Public Security (SGD4.54 billion).

Estimated Discount To Fair Value: 49.3%

Singapore Technologies Engineering, trading at SGD 4.56, is undervalued with an estimated fair value of SGD 9. Recent earnings for the first half of 2024 showed revenue growth to SGD 5.52 billion and net income of SGD 336.53 million, reflecting strong cash flow management despite concerns about debt coverage by operating cash flow. The company's forecasted annual profit growth (11.1%) surpasses the SG market average (10.2%), although its dividend track record remains unstable.

• Our earnings growth report unveils the potential for significant increases in Singapore Technologies Engineering's future results.
• Dive into the specifics of Singapore Technologies Engineering here with our thorough financial health report.

Where To Now?

• Navigate through the entire inventory of 5 Undervalued SGX Stocks Based On Cash Flows here.
• 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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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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