In This Article:
Japan’s stock markets have recently experienced sharp losses, with the Nikkei 225 Index falling 6.0% and the broader TOPIX Index down 5.6%. Despite this downturn, opportunities may exist for discerning investors to find undervalued stocks that could offer significant potential. In the current market environment, a good stock is often characterized by strong fundamentals and a solid business model that can withstand economic fluctuations. Identifying such stocks trading at a discount can provide an attractive entry point for long-term growth.
Top 10 Undervalued Stocks Based On Cash Flows In Japan
Name | Current Price | Fair Value (Est) | Discount (Est) |
CMK (TSE:6958) | ¥543.00 | ¥1082.51 | 49.8% |
en-japan (TSE:4849) | ¥2709.00 | ¥5364.98 | 49.5% |
Hottolink (TSE:3680) | ¥372.00 | ¥725.33 | 48.7% |
BayCurrent Consulting (TSE:6532) | ¥4545.00 | ¥8562.16 | 46.9% |
Medley (TSE:4480) | ¥4060.00 | ¥8109.66 | 49.9% |
EnomotoLtd (TSE:6928) | ¥1494.00 | ¥2919.18 | 48.8% |
Asahi Kasei (TSE:3407) | ¥1094.00 | ¥2130.12 | 48.6% |
Daiichi Kigenso Kagaku Kogyo (TSE:4082) | ¥865.00 | ¥1608.24 | 46.2% |
CIRCULATIONLtd (TSE:7379) | ¥684.00 | ¥1284.57 | 46.8% |
PeptiDream (TSE:4587) | ¥2690.00 | ¥5071.62 | 47% |
Let's review some notable picks from our screened stocks.
Chugin Financial GroupInc
Overview: Chugin Financial Group, Inc., with a market cap of ¥300.45 billion, offers a range of financial services to both corporate and individual customers in Japan through its subsidiary The Chugoku Bank, Limited.
Operations: Chugin Financial Group, Inc. generates revenue by providing a variety of financial services to corporate and individual clients in Japan through its subsidiary, The Chugoku Bank, Limited.
Estimated Discount To Fair Value: 13.5%
Chugin Financial Group Inc. appears undervalued based on cash flows, trading at ¥1660, below its estimated fair value of ¥1919.99. The company has a robust revenue growth forecast of 28.6% annually, outpacing the JP market's 4.3%. Recent buyback activities totaling ¥1,666.47 million for 1,040,300 shares aim to enhance capital efficiency and shareholder returns. However, the allowance for bad loans stands low at 53%, which might require attention in future assessments.
Kokusai Electric
Overview: Kokusai Electric Corporation develops, manufactures, sells, repairs, and maintains semiconductor manufacturing equipment globally with a market cap of ¥988.50 billion.