In the midst of a complex global economic landscape characterized by mixed performances across major indices and heightened trade tensions, investors are navigating a market marked by uncertainty. With large-cap tech stocks lagging and policy shifts influencing sentiment, the search for undervalued opportunities becomes more pertinent. Identifying stocks trading below their intrinsic value can be appealing in such conditions, as they may offer potential for growth when broader market dynamics stabilize.
Top 10 Undervalued Stocks Based On Cash Flows
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Pegasus (TSE:6262) | ¥464.00 | ¥919.51 | 49.5% |
| Micro-Star International (TWSE:2377) | NT$133.00 | NT$265.35 | 49.9% |
| Tongqinglou Catering (SHSE:605108) | CN¥20.85 | CN¥41.26 | 49.5% |
| Rise Consulting Group (TSE:9168) | ¥920.00 | ¥1814.10 | 49.3% |
| Jerónimo Martins SGPS (ENXTLS:JMT) | €21.40 | €42.22 | 49.3% |
| Shanghai HIUV New MaterialsLtd (SHSE:688680) | CN¥36.49 | CN¥72.37 | 49.6% |
| Visional (TSE:4194) | ¥8339.00 | ¥16547.52 | 49.6% |
| Swire Properties (SEHK:1972) | HK$16.34 | HK$32.21 | 49.3% |
| Everest Medicines (SEHK:1952) | HK$49.70 | HK$97.92 | 49.2% |
| Longino & Cardenal (BIT:LON) | €1.36 | €2.71 | 49.8% |
Let's explore several standout options from the results in the screener.
América Móvil. de (BMV:AMX B)
Overview: América Móvil, S.A.B. de C.V. is a telecommunications company offering services across Latin America and internationally, with a market capitalization of MX$1.01 trillion.
Operations: The company generates revenue from its telecommunications services, with cellular services contributing MX$869.22 billion.
Estimated Discount To Fair Value: 42.2%
América Móvil is trading at MX$16.58, significantly below its estimated fair value of MX$28.7, suggesting it may be undervalued based on cash flows. Despite high debt levels and declining profit margins from 9.3% to 3.3%, earnings are projected to grow by 25% annually over the next three years, outpacing the Mexican market's growth rate of 11.1%. However, revenue growth is expected to lag behind the market average at only 5% per year.
- Our growth report here indicates América Móvil. de may be poised for an improving outlook.
- Click to explore a detailed breakdown of our findings in América Móvil. de's balance sheet health report.
EVE Energy (SZSE:300014)
Overview: EVE Energy Co., Ltd. focuses on the research, development, production, and sales of lithium batteries both in China and internationally, with a market cap of CN¥82.39 billion.
Operations: EVE Energy Co., Ltd. generates revenue of CN¥48.61 billion from its electronic component manufacturing segment, specializing in lithium batteries for domestic and international markets.
Estimated Discount To Fair Value: 46.9%
EVE Energy, trading at CNY 40.92, is valued below its estimated fair value of CNY 77.12, indicating potential undervaluation based on cash flows. Despite modest earnings growth of 0.6% last year and a dividend not well-covered by free cash flows, the company forecasts significant annual earnings growth of 23.07% over three years and revenue growth outpacing the market at 20.6%. A recent strategic partnership with SINEXCEL aims to enhance technological innovation and market expansion in energy storage solutions.
- Insights from our recent growth report point to a promising forecast for EVE Energy's business outlook.
- Click here and access our complete balance sheet health report to understand the dynamics of EVE Energy.
Chroma ATE (TWSE:2360)
Overview: Chroma ATE Inc. is involved in the design, assembly, manufacturing, sales, repair, and maintenance of software/hardware for computers and peripherals as well as various electronic testing systems and power supplies across Taiwan, China, the United States, and other international markets with a market cap of NT$114.39 billion.
Operations: The company's revenue is primarily derived from its Measuring Instruments Business, which accounts for NT$33.42 billion, and Automated Transport Engineering, contributing NT$1.45 billion.
Estimated Discount To Fair Value: 36.7%
Chroma ATE, trading at NT$280, is undervalued with a fair value estimate of NT$442.46. The company reported robust earnings growth of 32.3% last year and forecasts annual profit growth of 20.1%, outpacing the Taiwan market's 14.2%. Despite a dividend yield not fully covered by free cash flows, its revenue is projected to grow faster than the market at 16.1% annually, supported by recent inclusion in the FTSE All-World Index.
- According our earnings growth report, there's an indication that Chroma ATE might be ready to expand.
- Navigate through the intricacies of Chroma ATE with our comprehensive financial health report here.
Seize The Opportunity
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Ready To Venture Into Other Investment Styles?
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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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