3 UK Stocks Estimated To Be Up To 48.2% Below Intrinsic Value
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Over the last 7 days, the United Kingdom market has remained flat, though it is up 7.1% over the past year with earnings forecast to grow by 14% annually. In this context, identifying stocks that are significantly undervalued can present compelling opportunities for investors looking to capitalize on potential growth.
Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Topps Tiles (LSE:TPT) | ￡0.45 | ￡0.88 | 48.9% |
| Gaming Realms (AIM:GMR) | ￡0.40 | ￡0.76 | 47.1% |
| Victorian Plumbing Group (AIM:VIC) | ￡1.03 | ￡1.85 | 44.3% |
| GlobalData (AIM:DATA) | ￡2.07 | ￡3.71 | 44.2% |
| Victrex (LSE:VCT) | ￡9.32 | ￡17.25 | 46% |
| Informa (LSE:INF) | ￡8.332 | ￡16.27 | 48.8% |
| Redcentric (AIM:RCN) | ￡1.295 | ￡2.43 | 46.8% |
| SysGroup (AIM:SYS) | ￡0.34 | ￡0.65 | 48% |
| Foxtons Group (LSE:FOXT) | ￡0.618 | ￡1.18 | 47.7% |
| Hochschild Mining (LSE:HOC) | ￡1.824 | ￡3.52 | 48.2% |
Underneath we present a selection of stocks filtered out by our screen.
Hochschild Mining
Overview: Hochschild Mining plc is a precious metals company involved in the exploration, mining, processing, and sale of gold and silver deposits across Peru, Argentina, the United States, Canada, Brazil, and Chile with a market cap of ￡938.37 million.
Operations: The company's revenue segments include $266.70 million from San Jose and $451.91 million from Inmaculada, with a segment adjustment of $79.60 million.
Estimated Discount To Fair Value: 48.2%
Hochschild Mining plc appears undervalued based on cash flows, trading at ￡1.82, significantly below its estimated fair value of ￡3.52. The company reported H1 2024 earnings with sales of US$391.74 million and net income of US$39.52 million, a turnaround from a net loss last year. Despite high debt levels and large one-off items impacting results, earnings are forecast to grow 44.63% annually over the next three years, outpacing the UK market's growth rate.
Stelrad Group
Overview: Stelrad Group PLC manufactures and distributes radiators in the United Kingdom, Ireland, Europe, Turkey, and internationally with a market cap of ￡192.94 million.
Operations: The company generates ￡294.27 million from the manufacture and distribution of radiators across various regions, including the UK, Ireland, Europe, Turkey, and internationally.
Estimated Discount To Fair Value: 41.2%
Stelrad Group PLC is trading at ￡1.52, significantly below its estimated fair value of ￡2.58, indicating it may be undervalued based on cash flows. Despite a decline in H1 2024 sales to ￡143.12 million from ￡157.04 million, net income slightly increased to ￡8.02 million from ￡7.99 million last year. The company declared an interim dividend increase and forecasts annual earnings growth of 14.52%, though revenue growth remains modest at 5.2% per year amidst high debt levels and recent insider selling activity.