Stock Analysis

3 Stocks Estimated To Be Trading At Discounts Of Up To 41.8%

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As global markets experience broad-based gains and U.S. indexes approach record highs, investors are navigating a landscape marked by geopolitical tensions and economic uncertainties. Amidst these conditions, identifying undervalued stocks can be a strategic move for those looking to capitalize on potential market inefficiencies.

Top 10 Undervalued Stocks Based On Cash Flows

NameCurrent PriceFair Value (Est)Discount (Est)
Alltop Technology (TPEX:3526)NT$279.50NT$555.2249.7%
Gaming Realms (AIM:GMR)£0.3665£0.7349.6%
Kehua Data (SZSE:002335)CN¥22.98CN¥45.5449.5%
S-Pool (TSE:2471)¥339.00¥676.6049.9%
EnomotoLtd (TSE:6928)¥1474.00¥2936.9549.8%
Equity Bancshares (NYSE:EQBK)US$49.21US$98.4250%
Intermedical Care and Lab Hospital (SET:IMH)THB4.94THB9.8549.8%
Fine Foods & Pharmaceuticals N.T.M (BIT:FF)€7.88€15.6349.6%
Shanghai INT Medical Instruments (SEHK:1501)HK$27.45HK$54.3649.5%
ASMPT (SEHK:522)HK$73.00HK$145.8149.9%

Click here to see the full list of 923 stocks from our Undervalued Stocks Based On Cash Flows screener.

Let's review some notable picks from our screened stocks.

Ryman Healthcare (NZSE:RYM)

Overview: Ryman Healthcare Limited develops, owns, and operates integrated retirement villages, rest homes, and hospitals for elderly people in New Zealand and Australia with a market cap of NZ$3.47 billion.

Operations: The company's revenue is primarily derived from the provision of integrated retirement villages for older people, amounting to NZ$687.56 million.

Estimated Discount To Fair Value: 41.8%

Ryman Healthcare is trading at NZ$5.07, significantly below its estimated fair value of NZ$8.72, making it undervalued based on discounted cash flow analysis. Despite high debt levels and recent profit margin declines to 0.7%, earnings are expected to grow significantly at 26.75% annually over the next three years, outpacing the New Zealand market's average growth rate of 24.7%. Analysts anticipate a price increase by 23.4%, reflecting positive sentiment towards future performance.

NZSE:RYM Discounted Cash Flow as at Nov 2024

ZJLD Group (SEHK:6979)

Overview: ZJLD Group Inc is involved in the production and sale of baijiu products in China, with a market cap of HK$22.23 billion.

Operations: The company's revenue primarily comes from its baijiu product lines, with CN¥4.98 billion from Zhen Jiu, CN¥1.29 billion from Li Du, CN¥844.13 million from Xiang Jiao, and CN¥388.16 million from Kai Kou Xiao.

Estimated Discount To Fair Value: 20.8%

ZJLD Group is trading at HK$6.67, below its estimated fair value of HK$8.42, suggesting undervaluation based on discounted cash flow analysis. Earnings are projected to grow significantly at 21.1% annually, surpassing the Hong Kong market's 11.6%. Revenue growth is forecasted at 14% per year, faster than the market average of 7.8%. However, profit margins have decreased from last year and significant insider selling has occurred recently, which may warrant caution.

SEHK:6979 Discounted Cash Flow as at Nov 2024

Nan Juen International (TPEX:6584)

Overview: Nan Juen International Co., Ltd. is involved in the research and development, manufacture, and trading of steel ball guide rails in Taiwan with a market capitalization of NT$12.76 billion.

Operations: The company's revenue primarily comes from the manufacture and sales of steel ball slide rails, amounting to NT$1.79 billion.

Estimated Discount To Fair Value: 29.9%

Nan Juen International, trading at NT$192, is undervalued with a fair value estimate of NT$274.01. Earnings are expected to grow significantly at 105% annually, outpacing the Taiwan market's 19.5%, while revenue growth is forecasted at 39.4% per year. Recent earnings reports show substantial improvement with net income rising to NT$140.85 million for nine months ending September 2024, though high debt levels relative to operating cash flow remain a concern.

TPEX:6584 Discounted Cash Flow as at Nov 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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