In This Article:
In a period marked by easing trade tensions and unexpectedly robust job growth, global markets have shown resilience despite ongoing economic uncertainties. As investors navigate this complex landscape, identifying undervalued stocks can offer potential opportunities for those seeking value investments.
Top 10 Undervalued Stocks Based On Cash Flows
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Aidma Holdings (TSE:7373) | ¥1843.00 | ¥3675.49 | 49.9% |
| Sany Renewable EnergyLtd (SHSE:688349) | CN¥22.70 | CN¥44.89 | 49.4% |
| RACCOON HOLDINGS (TSE:3031) | ¥798.00 | ¥1576.52 | 49.4% |
| Truecaller (OM:TRUE B) | SEK75.15 | SEK148.30 | 49.3% |
| Lectra (ENXTPA:LSS) | €24.10 | €47.78 | 49.6% |
| Boreo Oyj (HLSE:BOREO) | €15.30 | €30.38 | 49.6% |
| FACC (WBAG:FACC) | €7.08 | €14.09 | 49.8% |
| ATON Green Storage (BIT:ATON) | €1.92 | €3.83 | 49.9% |
| HanJung Natural Connectivity System.co.Ltd (KOSDAQ:A107640) | ₩27400.00 | ₩54530.89 | 49.8% |
| W5 Solutions (OM:W5) | SEK76.40 | SEK151.39 | 49.5% |
Let's take a closer look at a couple of our picks from the screened companies.
ASMPT
Overview: ASMPT Limited is an investment holding company involved in designing, manufacturing, and marketing machines, tools, and materials for the semiconductor and electronics assembly industries globally with a market cap of approximately HK$22.24 billion.
Operations: The company's revenue is derived from two main segments: Semiconductor Solutions, contributing HK$7.42 billion, and Surface Mount Technology (SMT) Solutions, accounting for HK$5.79 billion.
Estimated Discount To Fair Value: 49.1%
ASMPT is trading significantly below its estimated fair value, making it potentially undervalued based on cash flows. Despite recent earnings showing a decline in net income to HK$83.64 million from HK$179.91 million year-over-year, the company's earnings are forecasted to grow 36.9% annually, outpacing the Hong Kong market's growth rate. However, profit margins have decreased from 4.1% to 1.9%, and its return on equity is expected to be modest at 12.9% in three years.
-
Our growth report here indicates ASMPT may be poised for an improving outlook.
-
Dive into the specifics of ASMPT here with our thorough financial health report.
China National Software & Service
Overview: China National Software & Service Company Limited operates as a software company in China with a market cap of CN¥38.44 billion.
Operations: The company's revenue is primarily derived from its Software Service Business, which generated CN¥5.14 billion.
Estimated Discount To Fair Value: 18.6%
China National Software & Service is trading at CN¥45.38, below its estimated fair value of CN¥55.74, suggesting potential undervaluation based on cash flows. Despite a recent decline in quarterly revenue to CN¥640.5 million from the previous year's CN¥702.71 million, earnings are forecast to grow 100% annually with expected profitability within three years. However, return on equity remains low at a projected 9.8%, and recent net losses have narrowed compared to last year’s figures.