Stock Analysis

APR And 2 Other Stocks That May Be Trading Below Their Estimated Value

KOSE:A278470
Source: Shutterstock

In a week marked by volatility, global markets have been influenced by a mix of geopolitical tensions, central bank decisions, and competitive pressures in the AI sector. While the Dow Jones Industrial Average managed modest gains, other indices like the Nasdaq Composite faced declines due to emerging competition from Chinese AI developers and mixed corporate earnings reports. In such an environment, identifying stocks that may be trading below their estimated value can offer opportunities for investors looking to capitalize on market inefficiencies.

Top 10 Undervalued Stocks Based On Cash Flows

NameCurrent PriceFair Value (Est)Discount (Est)
Zhongji Innolight (SZSE:300308)CN¥98.25CN¥195.5649.8%
Reach Subsea (OB:REACH)NOK8.06NOK16.1250%
TF Bank (OM:TFBANK)SEK376.00SEK750.2849.9%
Telefonaktiebolaget LM Ericsson (OM:ERIC B)SEK82.94SEK165.7250%
Decisive Dividend (TSXV:DE)CA$5.97CA$11.8949.8%
Northwest Bancshares (NasdaqGS:NWBI)US$13.23US$26.3149.7%
Groupe Dynamite (TSX:GRGD)CA$16.11CA$32.0749.8%
WuXi XDC Cayman (SEHK:2268)HK$28.25HK$56.1249.7%
Sociedad Química y Minera de Chile (NYSE:SQM)US$37.70US$75.2049.9%
Kyndryl Holdings (NYSE:KD)US$43.45US$86.6649.9%

Click here to see the full list of 925 stocks from our Undervalued Stocks Based On Cash Flows screener.

Let's explore several standout options from the results in the screener.

APR (KOSE:A278470)

Overview: APR Co., Ltd is a company that manufactures and sells cosmetic products for men and women, with a market cap of ₩1.77 billion.

Operations: The company's revenue is primarily derived from the Cosmetics Sector, contributing ₩693.18 million, followed by the Clothing Fashion Sector with ₩57.97 million.

Estimated Discount To Fair Value: 41.8%

APR Co., Ltd. is trading 41.8% below its estimated fair value of ₩81,581.64, indicating potential undervaluation based on cash flows. The company has initiated a share buyback program worth KRW 30 billion to stabilize stock prices and enhance shareholder value. Despite high non-cash earnings, APR's revenue is forecast to grow at 18.9% annually, surpassing the market average but with earnings growth trailing the market at 23.8%.

KOSE:A278470 Discounted Cash Flow as at Feb 2025
KOSE:A278470 Discounted Cash Flow as at Feb 2025

TCI (TPEX:8436)

Overview: TCI Co., Ltd. is an original design manufacturer that produces, wholesales, and retails health foods and cosmetics products in Taiwan, Mainland China, the United States, and internationally, with a market cap of NT$14.30 billion.

Operations: The company's revenue is primarily generated from Taiwan (NT$5.46 billion), followed by Asia (NT$2.43 billion) and the United States (NT$2.01 billion).

Estimated Discount To Fair Value: 48.9%

TCI Co., Ltd. is trading at NT$121.5, significantly below its estimated fair value of NT$237.74, highlighting potential undervaluation based on cash flows. Despite recent executive changes and a decline in earnings, the company's profits are forecast to grow at 30.2% per year, outpacing the market average of 17.5%. However, its dividend yield of 5.76% is not well supported by earnings or free cash flow, posing sustainability concerns.

TPEX:8436 Discounted Cash Flow as at Feb 2025
TPEX:8436 Discounted Cash Flow as at Feb 2025

TOC (TSE:8841)

Overview: TOC Co., Ltd. operates in the real estate sector in Japan and has a market capitalization of approximately ¥64.46 billion.

Operations: TOC Co., Ltd.'s revenue segments include its operations in the real estate sector within Japan.

Estimated Discount To Fair Value: 37.5%

TOC Co., Ltd. is trading at ¥692, significantly below its estimated fair value of ¥1107.35, suggesting undervaluation based on cash flows. Despite a substantial drop in profit margins from 49.2% to 3.4%, earnings are forecast to grow at 63.3% annually, outpacing market averages. Recent share buybacks totaling ¥3,311.55 million aim to enhance capital efficiency and may positively impact shareholder value amidst anticipated growth challenges in revenue and return on equity forecasts.

TSE:8841 Discounted Cash Flow as at Feb 2025
TSE:8841 Discounted Cash Flow as at Feb 2025

Summing It All Up

Want To Explore Some Alternatives?

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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About KOSE:A278470

APR

APR Co.,Ltd manufactures and sells cosmetic products for men and women.

Flawless balance sheet and good value.

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