3 ASX Stocks Trading At Up To 46.3% Below Intrinsic Value

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Over the last 7 days, the Australian market has risen 1.1%, and over the past 12 months, it is up 11%, with earnings forecasted to grow by 13% annually. In this favorable environment, identifying undervalued stocks can present significant opportunities for investors looking to capitalize on potential growth.

Top 10 Undervalued Stocks Based On Cash Flows In Australia

Name

Current Price

Fair Value (Est)

Discount (Est)

Regal Partners (ASX:RPL)

A$3.39

A$6.77

49.9%

Hansen Technologies (ASX:HSN)

A$4.21

A$8.20

48.7%

IPH (ASX:IPH)

A$6.18

A$11.54

46.4%

Ansell (ASX:ANN)

A$29.55

A$56.92

48.1%

Shine Justice (ASX:SHJ)

A$0.71

A$1.34

47%

HMC Capital (ASX:HMC)

A$8.31

A$15.47

46.3%

Millennium Services Group (ASX:MIL)

A$1.145

A$2.24

48.9%

Little Green Pharma (ASX:LGP)

A$0.091

A$0.17

46.3%

Airtasker (ASX:ART)

A$0.265

A$0.52

49.4%

Superloop (ASX:SLC)

A$1.71

A$3.31

48.4%

Click here to see the full list of 43 stocks from our Undervalued ASX Stocks Based On Cash Flows screener.

Underneath we present a selection of stocks filtered out by our screen.

HMC Capital

Overview: HMC Capital Limited, with a market cap of A$3.14 billion, owns and manages real estate-focused funds in Australia through its subsidiaries.

Operations: HMC Capital generates revenue primarily from real estate at A$77.60 million, supplemented by private equity at A$3.50 million.

Estimated Discount To Fair Value: 46.3%

HMC Capital reported earnings of A$66 million and sales of A$81.1 million for the year ended June 30, 2024, showing solid growth from the previous year. Trading at A$8.31, it is significantly undervalued compared to its estimated fair value of A$15.47. Although shareholders faced dilution recently, HMC's revenue is forecast to grow by over 20% annually, outpacing market averages and indicating strong future cash flows despite a modest return on equity forecast of 9.5%.

ASX:HMC Discounted Cash Flow as at Aug 2024

Infomedia

Overview: Infomedia Ltd (ASX:IFM) is a technology company that develops and supplies electronic parts catalogues, service quoting software, and e-commerce solutions for the automotive industry worldwide, with a market cap of A$657.61 million.

Operations: Revenue from publishing periodicals amounts to A$140.83 million.

Estimated Discount To Fair Value: 25.8%

Infomedia Ltd reported full-year sales of A$140.83 million, up from A$129.91 million last year, with net income rising to A$12.68 million from A$9.58 million. Trading at A$1.76, it is significantly undervalued compared to its estimated fair value of A$2.37 and shows strong cash flow potential with earnings expected to grow 28.7% annually over the next three years, outpacing the broader Australian market's growth forecast of 12.8%.