ASX Insights Data#3 And 2 More Companies Estimated Below Intrinsic Value
In This Article:
Over the last 7 days, the Australian market has remained flat, yet over the past 12 months, it has risen by 20%, with earnings forecasted to grow by 12% annually. In this context of steady growth, identifying undervalued stocks like Data#3 and others can offer potential opportunities for investors seeking to capitalize on companies trading below their intrinsic value.
Top 10 Undervalued Stocks Based On Cash Flows In Australia
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Westgold Resources (ASX:WGX) | A$3.26 | A$6.24 | 47.8% |
| VEEM (ASX:VEE) | A$1.625 | A$3.20 | 49.3% |
| Ansell (ASX:ANN) | A$31.51 | A$57.74 | 45.4% |
| IDP Education (ASX:IEL) | A$13.84 | A$27.34 | 49.4% |
| Charter Hall Group (ASX:CHC) | A$16.24 | A$31.29 | 48.1% |
| Ingenia Communities Group (ASX:INA) | A$4.93 | A$9.38 | 47.4% |
| Millennium Services Group (ASX:MIL) | A$1.145 | A$2.24 | 48.9% |
| Genesis Minerals (ASX:GMD) | A$2.47 | A$4.79 | 48.5% |
| Aussie Broadband (ASX:ABB) | A$3.70 | A$6.74 | 45.1% |
| Ai-Media Technologies (ASX:AIM) | A$0.75 | A$1.41 | 47% |
Let's uncover some gems from our specialized screener.
Data#3
Overview: Data#3 Limited provides information technology solutions and services across Australia, Fiji, and the Pacific Islands, with a market capitalization of A$1.16 billion.
Operations: The company's revenue primarily comes from its role as a value-added IT reseller and IT solutions provider, generating A$805.75 million.
Estimated Discount To Fair Value: 44.4%
Data#3 is trading at A$7.47, significantly below its estimated fair value of A$13.44, suggesting it may be undervalued based on cash flows. Despite a dividend yield of 3.45% not being well covered by earnings or free cash flows, the company has shown strong revenue growth forecasts of 33.2% annually, outpacing the Australian market average. Recent changes include appointing PwC as auditor and board adjustments with Ms. Leanne Muller retiring as Non-Executive Director.
-
Click here and access our complete balance sheet health report to understand the dynamics of Data#3.
Medibank Private
Overview: Medibank Private Limited offers private health insurance and health services in Australia, with a market capitalization of A$10.13 billion.
Operations: The company generates revenue through its Health Insurance segment, contributing A$7.90 billion, and Medibank Health services, which add A$360.10 million.
Estimated Discount To Fair Value: 42.8%
Medibank Private is trading at A$3.68, well below its estimated fair value of A$6.43, which highlights potential undervaluation based on cash flows. Although the dividend yield of 4.51% is not adequately covered by earnings, the company's earnings are forecast to grow significantly at 28% annually, surpassing the Australian market's average growth rate. Recent announcements include a fully franked dividend increase and reported net income of A$3.9 million for the fiscal year ending June 2024.