In This Article:
The Australian market has recently seen a modest rise, with the ASX200 closing up 0.24% at 8,145 points, driven by strong performances in the IT and Real Estate sectors. In this environment of mixed sectoral performance, identifying undervalued stocks like those in Real Estate can be crucial for investors looking to capitalize on potential portfolio growth opportunities.
Top 10 Undervalued Stocks Based On Cash Flows In Australia
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Smart Parking (ASX:SPZ) | A$0.92 | A$1.76 | 47.7% |
| Amaero (ASX:3DA) | A$0.265 | A$0.47 | 43.2% |
| Charter Hall Group (ASX:CHC) | A$17.40 | A$34.25 | 49.2% |
| Pantoro Gold (ASX:PNR) | A$2.80 | A$4.96 | 43.6% |
| Regis Healthcare (ASX:REG) | A$7.24 | A$14.13 | 48.8% |
| Integral Diagnostics (ASX:IDX) | A$2.40 | A$4.11 | 41.6% |
| Nuix (ASX:NXL) | A$2.50 | A$4.21 | 40.6% |
| Electro Optic Systems Holdings (ASX:EOS) | A$1.175 | A$2.34 | 49.9% |
| Sandfire Resources (ASX:SFR) | A$9.89 | A$17.86 | 44.6% |
| Superloop (ASX:SLC) | A$2.50 | A$4.58 | 45.4% |
We'll examine a selection from our screener results.
Charter Hall Group
Overview: Charter Hall Group (ASX:CHC) is a leading fully integrated property investment and funds management group in Australia, with a market cap of A$7.99 billion.
Operations: Charter Hall Group generates revenue through its segments of Funds Management (A$441.60 million), Property Investments (A$332.50 million), and Development Investments (A$45.30 million).
Estimated Discount To Fair Value: 49.2%
Charter Hall Group is trading at A$17.4, significantly below its estimated fair value of A$34.25, suggesting it may be undervalued based on cash flows. Earnings are forecast to grow 30.45% annually, with profitability expected within three years, outpacing average market growth. Despite a slight dip in recent revenue to A$283.6 million from A$308.2 million last year, net income rose sharply to A$118.1 million, highlighting strong financial management and potential for future performance improvement.
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Get an in-depth perspective on Charter Hall Group's balance sheet by reading our health report here.
Regis Healthcare
Overview: Regis Healthcare Limited provides residential aged care services in Australia and has a market cap of A$2.05 billion.
Operations: The company generates revenue of A$1.10 billion from its residential aged care services in Australia.
Estimated Discount To Fair Value: 48.8%
Regis Healthcare is trading at A$7.24, well below its estimated fair value of A$14.13, highlighting potential undervaluation based on cash flows. The company recently returned to profitability with a net income of A$24.36 million for the half-year ending December 2024, reversing a previous loss. Earnings are projected to grow significantly at 30.9% annually, surpassing market averages and indicating strong future performance potential despite slower revenue growth forecasts compared to earnings expansion.