Stock Analysis

American Healthcare REIT Among 3 Stocks Valued Below Intrinsic Estimates

NYSE:AHR
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As the U.S. stock market experiences mixed performance, with key indices such as the Dow Jones showing gains while the S&P 500 and Nasdaq face slight declines, investors are closely evaluating economic indicators and policy announcements for their potential impact on market stability. In this environment of uncertainty, identifying stocks that are undervalued relative to their intrinsic estimates can offer potential opportunities for investors seeking to navigate these turbulent conditions effectively.

Top 10 Undervalued Stocks Based On Cash Flows In The United States

NameCurrent PriceFair Value (Est)Discount (Est)
SouthState (NYSE:SSB)$99.63$193.8648.6%
Argan (NYSE:AGX)$132.20$264.3350%
MINISO Group Holding (NYSE:MNSO)$20.69$41.1549.7%
Atour Lifestyle Holdings (NasdaqGS:ATAT)$30.63$59.4848.5%
Northwest Bancshares (NasdaqGS:NWBI)$12.40$24.5549.5%
Old National Bancorp (NasdaqGS:ONB)$23.40$45.5048.6%
Cadre Holdings (NYSE:CDRE)$33.42$65.2148.7%
Array Technologies (NasdaqGM:ARRY)$6.86$13.5049.2%
Albemarle (NYSE:ALB)$77.53$151.6248.9%
DoubleVerify Holdings (NYSE:DV)$21.59$42.1548.8%

Click here to see the full list of 182 stocks from our Undervalued US Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results.

American Healthcare REIT (NYSE:AHR)

Overview: American Healthcare REIT, Inc. is a self-managed real estate investment trust specializing in the acquisition, ownership, and operation of a diverse range of clinical healthcare properties such as outpatient medical buildings and senior housing, with a market cap of approximately $4.50 billion.

Operations: The company's revenue segments consist of $137.72 million from outpatient medical buildings, $238.76 million from senior housing operating properties, $52.51 million from triple-net leased properties, and $1.58 billion from integrated senior health campuses.

Estimated Discount To Fair Value: 12.7%

American Healthcare REIT is trading at US$29.72, 12.7% below its estimated fair value of US$34.04, indicating potential undervaluation based on cash flows. Despite a forecasted revenue growth of 9.2% annually and expected profitability in three years, its dividend yield of 3.36% is not well covered by free cash flows. Earnings are projected to grow at an impressive rate of 38.67% per year, although return on equity remains low at a forecasted 3.6%.

NYSE:AHR Discounted Cash Flow as at Feb 2025
NYSE:AHR Discounted Cash Flow as at Feb 2025

Equifax (NYSE:EFX)

Overview: Equifax Inc. is a data, analytics, and technology company with a market cap of $30.43 billion.

Operations: The company's revenue is primarily generated from three segments: International ($1.35 billion), Workforce Solutions ($2.43 billion), and U.S. Information Solutions ($1.89 billion).

Estimated Discount To Fair Value: 33.7%

Equifax, trading at US$243.62, is significantly undervalued with a fair value estimate of US$367.23, offering potential based on cash flows. The company reported strong earnings growth and forecasts annual profit increases of 21.9%, outpacing the broader market's 14.2%. Although revenue growth is projected at a slower 8.9% annually, Equifax's strategic focus on bolt-on acquisitions and consistent dividend payments underscore its commitment to shareholder returns despite high debt levels.

NYSE:EFX Discounted Cash Flow as at Feb 2025
NYSE:EFX Discounted Cash Flow as at Feb 2025

Workiva (NYSE:WK)

Overview: Workiva Inc. offers cloud-based reporting solutions globally and has a market capitalization of approximately $4.69 billion.

Operations: Revenue Segments (in millions of $): null

Estimated Discount To Fair Value: 47.4%

Workiva, priced at US$89.32, is considerably undervalued with a fair value estimate of US$169.66. The company reported revenue growth to US$738.68 million in 2024 from US$630.04 million the previous year, while reducing its net loss to US$55.04 million from US$127.53 million. With expected revenue growth of 14.6% per year and profitability anticipated within three years, Workiva's cash flow potential remains robust despite current negative equity and forecasted losses for 2025.

NYSE:WK Discounted Cash Flow as at Feb 2025
NYSE:WK Discounted Cash Flow as at Feb 2025

Where To Now?

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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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About NYSE:AHR

American Healthcare REIT

A self-managed real estate investment trust that acquires, owns and operates a diversified portfolio of clinical healthcare real estate properties, focusing primarily on outpatient medical buildings, senior housing, skilled nursing facilities and other healthcare-related facilities.

Reasonable growth potential with adequate balance sheet.