Discover 3 Stocks Including Eaglerise Electric & Electronic (China) That Might Be Priced Below Estimated Value

December 31, 2024

As global markets navigate a mixed landscape of consumer confidence dips and moderate stock index gains, investors are increasingly seeking opportunities amid fluctuating economic indicators. In this context, identifying undervalued stocks can be particularly appealing, as these investments may offer potential value despite broader market uncertainties.

Top 10 Undervalued Stocks Based On Cash Flows

Name	Current Price	Fair Value (Est)	Discount (Est)
Globetronics Technology Bhd (KLSE:GTRONIC)	MYR0.585	MYR1.17	49.8%
Wasion Holdings (SEHK:3393)	HK$7.13	HK$14.19	49.7%
Strike CompanyLimited (TSE:6196)	¥3655.00	¥7288.65	49.9%
S Foods (TSE:2292)	¥2737.00	¥5472.35	50%
GlobalData (AIM:DATA)	£1.875	£3.74	49.8%
Charter Hall Group (ASX:CHC)	A$14.35	A$28.70	50%
Cettire (ASX:CTT)	A$1.51	A$3.02	49.9%
ASMPT (SEHK:522)	HK$74.90	HK$149.66	50%
Merus Power Oyj (HLSE:MERUS)	€3.71	€7.39	49.8%
Progress Software (NasdaqGS:PRGS)	US$65.05	US$129.48	49.8%

Click here to see the full list of 889 stocks from our Undervalued Stocks Based On Cash Flows screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Eaglerise Electric & Electronic (China) (SZSE:002922)

Overview: Eaglerise Electric & Electronic (China) Co., Ltd. operates in the electrical and electronic manufacturing industry with a market cap of CN¥7.47 billion.

Operations: Eaglerise Electric & Electronic (China) Co., Ltd. generates its revenue from various segments within the electrical and electronic manufacturing industry.

Estimated Discount To Fair Value: 41.1%

Eaglerise Electric & Electronic (China) is trading at CN¥17.82, significantly below its estimated fair value of CN¥30.27, suggesting potential undervaluation based on cash flows. The company's earnings are forecast to grow at 35.7% annually, outpacing the Chinese market's growth rate of 25.4%. Despite a recent share buyback totaling CN¥92.68 million, the dividend yield remains inadequately covered by free cash flows, highlighting a potential risk for investors focusing on dividends.

SZSE:002922 Discounted Cash Flow as at Dec 2024

Strike CompanyLimited (TSE:6196)

Overview: Strike Company, Limited offers mergers and acquisitions brokerage services for small and medium-sized companies in Japan, with a market cap of ¥70.19 billion.

Operations: Strike Company, Limited generates its revenue primarily through providing brokerage services for mergers and acquisitions involving small and medium-sized enterprises within Japan.

Estimated Discount To Fair Value: 49.9%

Strike Company Limited is trading at ¥3,655, below its estimated fair value of ¥7,288.65, indicating potential undervaluation based on cash flows. Earnings are expected to grow 13.7% annually, surpassing the Japanese market's 7.9% growth rate. The company announced a significant dividend increase and forecasts robust revenue growth of 16.5% per year. However, recent share price volatility may concern risk-averse investors despite strong financial projections and high return on equity expectations.

TSE:6196 Discounted Cash Flow as at Dec 2024

Chung-Hsin Electric and Machinery Manufacturing (TWSE:1513)

Overview: Chung-Hsin Electric and Machinery Manufacturing Corp. operates in the electrical and machinery manufacturing sector, with a market cap of NT$75.35 billion.

Operations: The company generates revenue from three main segments: Service Business (NT$5.06 billion), Engineering and Other (NT$2.52 billion), and Motor Energy Business (NT$18.87 billion).

Estimated Discount To Fair Value: 38.4%

Chung-Hsin Electric and Machinery Manufacturing is trading at NT$154.5, significantly below its estimated fair value of NT$250.71, highlighting potential undervaluation based on cash flows. Recent earnings showed substantial growth, with net income rising to TWD 2.77 billion for the first nine months of 2024 from TWD 794.49 million a year ago. Earnings are projected to grow at 19.06% annually, slightly outpacing the Taiwanese market's growth rate, despite high debt levels.

TWSE:1513 Discounted Cash Flow as at Dec 2024

Turning Ideas Into Actions

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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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