Stock Analysis

3 Stocks Estimated To Be Undervalued By Up To 43.3% Offering Intriguing Opportunities

SET:STA
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As global markets continue to navigate a landscape marked by geopolitical tensions and economic uncertainties, U.S. indexes have shown resilience with broad-based gains, buoyed by positive labor market data and home sales reports. In this environment, identifying stocks that are potentially undervalued can present intriguing opportunities for investors looking to capitalize on market inefficiencies.

Top 10 Undervalued Stocks Based On Cash Flows

NameCurrent PriceFair Value (Est)Discount (Est)
Shenzhen King Explorer Science and Technology (SZSE:002917)CN¥9.44CN¥18.8249.8%
HangzhouS MedTech (SHSE:688581)CN¥62.11CN¥124.1550%
NBT Bancorp (NasdaqGS:NBTB)US$50.08US$99.9349.9%
Nordic Waterproofing Holding (OM:NWG)SEK172.40SEK344.2749.9%
Insyde Software (TPEX:6231)NT$463.00NT$923.4949.9%
Power Root Berhad (KLSE:PWROOT)MYR1.46MYR2.9250%
EnomotoLtd (TSE:6928)¥1470.00¥2936.1249.9%
DUG Technology (ASX:DUG)A$1.67A$3.4050.8%
Intermedical Care and Lab Hospital (SET:IMH)THB4.94THB9.8649.9%
Audinate Group (ASX:AD8)A$8.83A$17.5449.7%

Click here to see the full list of 920 stocks from our Undervalued Stocks Based On Cash Flows screener.

Here's a peek at a few of the choices from the screener.

T'Way Air (KOSE:A091810)

Overview: T'Way Air Co., Ltd. offers air transportation services both domestically in South Korea and internationally, with a market cap of approximately ₩647.67 billion.

Operations: T'Way Air Co., Ltd. generates revenue primarily through its domestic and international air transportation services.

Estimated Discount To Fair Value: 43.3%

T'Way Air is trading at ₩3010, significantly undervalued by 43.3% compared to its estimated fair value of ₩5311.47. Despite recent shareholder dilution and high share price volatility, the company's earnings are forecast to grow significantly at 29.8% annually, outpacing the broader KR market's growth rate of 29.3%. However, profit margins have decreased from 7.8% to 3.2%, indicating potential challenges in operational efficiency despite strong revenue growth prospects.

KOSE:A091810 Discounted Cash Flow as at Nov 2024
KOSE:A091810 Discounted Cash Flow as at Nov 2024

Sri Trang Agro-Industry (SET:STA)

Overview: Sri Trang Agro-Industry Public Company Limited, along with its subsidiaries, is engaged in the manufacturing and distribution of natural rubber products across Thailand, China, the United States, Singapore, Japan, and other international markets; it has a market cap of THB28.42 billion.

Operations: The company generates revenue from its segments, with THB23.30 billion from gloves and THB86.85 billion from natural rubbers.

Estimated Discount To Fair Value: 30.6%

Sri Trang Agro-Industry is trading at THB18.5, 30.6% below its estimated fair value of THB26.64, highlighting significant undervaluation based on discounted cash flow analysis. The company reported a net income turnaround in the third quarter with THB 517.29 million compared to a loss last year, although profit margins remain low at 0.4%. While revenue and earnings growth forecasts are robust, interest payments are poorly covered by earnings, reflecting potential financial strain.

SET:STA Discounted Cash Flow as at Nov 2024
SET:STA Discounted Cash Flow as at Nov 2024

Kasumigaseki CapitalLtd (TSE:3498)

Overview: Kasumigaseki Capital Co., Ltd. operates in the real estate consulting sector in Japan with a market capitalization of ¥125.56 billion.

Operations: The company generates revenue of ¥65.69 billion from its real estate consulting business in Japan.

Estimated Discount To Fair Value: 28.6%

Kasumigaseki Capital Ltd. is trading at ¥12,760, significantly undervalued compared to its estimated fair value of ¥17,862.41. Despite a volatile share price recently and shareholder dilution over the past year, the company shows strong revenue and earnings growth forecasts exceeding 30% annually. However, debt coverage by operating cash flow is weak and dividends are not well supported by free cash flows, indicating potential financial challenges ahead.

TSE:3498 Discounted Cash Flow as at Nov 2024
TSE:3498 Discounted Cash Flow as at Nov 2024

Where To Now?

Curious About Other Options?

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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