3 ASX Stocks That May Be Undervalued By Up To 46.3%
Over the last 7 days, the Australian market has dropped 1.3%. In contrast to the last week, the market is up 11% over the past year, with earnings expected to grow by 12% per annum over the next few years. Identifying undervalued stocks can be particularly advantageous in such a fluctuating environment, as these stocks have strong potential for growth and may offer significant returns when market conditions stabilize.
Top 10 Undervalued Stocks Based On Cash Flows In Australia
Name | Current Price | Fair Value (Est) | Discount (Est) |
Hansen Technologies (ASX:HSN) | A$4.36 | A$8.23 | 47% |
MLG Oz (ASX:MLG) | A$0.65 | A$1.21 | 46.1% |
Genesis Minerals (ASX:GMD) | A$2.07 | A$4.06 | 49.1% |
HMC Capital (ASX:HMC) | A$7.93 | A$15.48 | 48.8% |
Ansell (ASX:ANN) | A$29.74 | A$57.64 | 48.4% |
Charter Hall Group (ASX:CHC) | A$15.71 | A$29.58 | 46.9% |
Millennium Services Group (ASX:MIL) | A$1.145 | A$2.24 | 48.9% |
Clover (ASX:CLV) | A$0.375 | A$0.72 | 48.1% |
Superloop (ASX:SLC) | A$1.78 | A$3.31 | 46.3% |
Sandfire Resources (ASX:SFR) | A$8.16 | A$15.20 | 46.3% |
Let's explore several standout options from the results in the screener.
SiteMinder
Overview: SiteMinder Limited (ASX:SDR) develops, markets, and sells online guest acquisition platforms and commerce solutions for accommodation providers in Australia and internationally, with a market cap of A$1.34 billion.
Operations: SiteMinder's revenue primarily comes from its Software & Programming segment, which generated A$190.84 million.
Estimated Discount To Fair Value: 34.5%
SiteMinder Limited, trading at A$4.87, is significantly undervalued compared to its estimated fair value of A$7.43. Recent earnings reports show a substantial reduction in net loss from A$49.3 million to A$25.13 million year-over-year, with revenue increasing from A$151.38 million to A$190.67 million over the same period. The company's strategic partnership with Cloudbeds aims to enhance revenue capabilities and operational accuracy for hoteliers globally, further supporting its growth trajectory and potential profitability within three years.
SEEK
Overview: SEEK Limited operates an online employment marketplace serving Australia, South East Asia, New Zealand, the United Kingdom, Europe, and other international markets with a market cap of A$8.04 billion.
Operations: SEEK's revenue segments include A$840.10 million from Employment Marketplaces in ANZ and A$244 million from Employment Marketplaces in Asia.
Estimated Discount To Fair Value: 10%
SEEK Limited, trading at A$22.97, is undervalued relative to its estimated fair value of A$25.52. Despite a recent net loss of A$100.9 million and a decrease in sales to A$1.08 billion for the fiscal year ending June 2024, the company’s revenue is forecasted to grow faster than the Australian market at 7.4% per year. Additionally, SEEK is expected to become profitable within three years with earnings projected to grow by over 41% annually.
Our earnings growth report unveils the potential for significant increases in SEEK's future results.
Delve into the full analysis health report here for a deeper understanding of SEEK.
Superloop
Overview: Superloop Limited, with a market cap of A$891.91 million, operates as a telecommunications and internet service provider in Australia.
Operations: Revenue segments (in millions of A$): Business: 104.04, Consumer: 264.56, Wholesale: 48.03
Estimated Discount To Fair Value: 46.3%
Superloop Limited, trading at A$1.78, is significantly undervalued compared to its estimated fair value of A$3.31. Recent earnings results showed a substantial improvement with sales rising to A$416.63 million and net loss narrowing to A$14.74 million for the fiscal year ending June 2024. Forecasts indicate Superloop will become profitable within three years, with revenue expected to grow at 15.2% annually, outpacing the broader Australian market growth rate of 5.3%.
Turning Ideas Into Actions
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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.
Companies discussed in this article include ASX:SDR ASX:SEK and ASX:SLC.
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