In This Article:
As the United Kingdom's FTSE 100 index faces pressure from weak trade data out of China, investors are closely monitoring market fluctuations and their implications for UK stocks. In such an environment, identifying stocks that may be priced below their estimated value can present potential opportunities for those looking to navigate these challenging conditions.
Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| ASA International Group (LSE:ASAI) | £0.81 | £1.49 | 45.8% |
| Savills (LSE:SVS) | £9.08 | £16.17 | 43.9% |
| Gooch & Housego (AIM:GHH) | £3.79 | £7.24 | 47.7% |
| Watches of Switzerland Group (LSE:WOSG) | £3.446 | £6.62 | 48% |
| Franchise Brands (AIM:FRAN) | £1.38 | £2.49 | 44.5% |
| Deliveroo (LSE:ROO) | £1.248 | £2.26 | 44.7% |
| Vanquis Banking Group (LSE:VANQ) | £0.568 | £1.02 | 44.3% |
| CVS Group (AIM:CVSG) | £9.51 | £18.40 | 48.3% |
| Fintel (AIM:FNTL) | £2.24 | £4.24 | 47.2% |
| Optima Health (AIM:OPT) | £1.71 | £3.08 | 44.5% |
Here we highlight a subset of our preferred stocks from the screener.
Hammerson
Overview: Hammerson is a company focused on owning, operating, and developing prime urban real estate in rapidly growing cities across the UK, Ireland, and France, with a portfolio valued at £4.7 billion and a market capitalization of approximately £1.13 billion.
Operations: The company's revenue segments include £80 million from UK flagship destinations, £55.30 million from those in France, and £37.70 million from Ireland.
Estimated Discount To Fair Value: 24.9%
Hammerson is trading at £2.34, significantly below its estimated fair value of £3.11, suggesting it is undervalued based on cash flows. Despite a challenging year with a net loss of £526.3 million and reduced sales (£81.8 million), the company shows potential for future profitability within three years and revenue growth outpacing the UK market average. However, its dividend yield of 6.69% lacks coverage from earnings or free cash flows, indicating financial strain.
Hochschild Mining
Overview: Hochschild Mining plc is a precious metals company involved in the exploration, mining, processing, and sale of gold and silver across several countries including Peru and Argentina, with a market cap of £1.29 billion.
Operations: The company's revenue segments include $293.34 million from San Jose, $149.82 million from Mara Rosa, and $504.34 million from Inmaculada, with Pallancata contributing -$0.26 million after adjustments and eliminations of -$3.98 million.