Seatrium And 2 Other Value Stocks On SGX That Could Be Trading At A Discount

The Singapore market remained flat over the last week but is up 8.7% over the past year, with earnings forecasted to grow by 10% annually. In this context, identifying undervalued stocks like Seatrium and two others on SGX could present compelling opportunities for investors seeking value amidst steady 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)	SGD4.66	SGD7.32	36.3%
Digital Core REIT (SGX:DCRU)	US$0.615	US$0.83	25.7%
Nanofilm Technologies International (SGX:MZH)	SGD0.865	SGD1.43	39.5%
Frasers Logistics & Commercial Trust (SGX:BUOU)	SGD1.15	SGD1.59	27.6%
Seatrium (SGX:5E2)	SGD1.78	SGD2.97	40%

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

Let's uncover some gems from our specialized screener.

Seatrium (SGX:5E2)

Overview: Seatrium Limited offers engineering solutions to the offshore, marine, and energy industries with a market cap of SGD6.05 billion.

Operations: Seatrium's revenue is primarily derived from its Rigs & Floaters, Repairs & Upgrades, Offshore Platforms and Specialised Shipbuilding segment at SGD8.39 billion, with additional income from Ship Chartering amounting to SGD24.71 million.

Estimated Discount To Fair Value: 40%

Seatrium Limited has demonstrated strong cash flow management, highlighted by its recent successful delivery of the Vali jackup rig ahead of schedule and a significant share buyback program. The company's half-year earnings report showed a turnaround to SGD 35.97 million in net income from a loss last year. Trading at 40% below estimated fair value (SGD1.78 vs SGD2.97), Seatrium is expected to grow profits significantly over the next three years, making it an attractive undervalued stock based on cash flows in Singapore.

• According our earnings growth report, there's an indication that Seatrium might be ready to expand.
• 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 in Singapore, sponsored by Digital Realty, with a market cap of $797.39 million.

Operations: The company's revenue segments include $70.76 million from REIT - Commercial.

Estimated Discount To Fair Value: 25.7%

Digital Core REIT's recent earnings report showed a decline in sales and revenue but a significant increase in net income to US$18.63 million from US$9.07 million year-on-year. Despite the unstable dividend track record, the stock is trading 25.7% below its estimated fair value of US$0.83 per unit, indicating potential undervaluation based on discounted cash flows. Analysts forecast above-market growth in both revenue (12% annually) and profitability 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 SGD563.18 million, provides 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: 39.5%

Nanofilm Technologies International is trading at SGD 0.87, significantly below its estimated fair value of SGD 1.43. Despite a challenging first half with a net loss of SGD 3.74 million, revenue increased to SGD 82.65 million from last year's SGD 73.15 million, and earnings are projected to grow by nearly 54% annually, outpacing the SG market's growth rate of 10%. However, profit margins have declined from last year’s figures.

• Our earnings growth report unveils the potential for significant increases in Nanofilm Technologies International's future results.
• Unlock comprehensive insights into our analysis of Nanofilm Technologies International stock in this financial health report.

Make It Happen

• Take a closer look at our Undervalued SGX Stocks Based On Cash Flows list of 5 companies by clicking here.
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Searching for a Fresh Perspective?

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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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