ASX Stocks That May Be Undervalued In August 2024

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Over the last 7 days, the Australian market has remained flat, although the Information Technology sector saw an impressive 11% gain. With the market up 12% over the past year and earnings forecasted to grow by 14% annually, identifying undervalued stocks could present significant opportunities for investors.

Top 10 Undervalued Stocks Based On Cash Flows In Australia

Name

Current Price

Fair Value (Est)

Discount (Est)

Mader Group (ASX:MAD)

A$5.30

A$10.53

49.7%

GTN (ASX:GTN)

A$0.46

A$0.9

48.7%

Shine Justice (ASX:SHJ)

A$0.695

A$1.34

48.3%

Ansell (ASX:ANN)

A$29.69

A$56.94

47.9%

HMC Capital (ASX:HMC)

A$8.20

A$15.48

47%

MLG Oz (ASX:MLG)

A$0.64

A$1.19

46.3%

Charter Hall Group (ASX:CHC)

A$14.95

A$29.82

49.9%

Millennium Services Group (ASX:MIL)

A$1.145

A$2.24

48.9%

Electro Optic Systems Holdings (ASX:EOS)

A$1.79

A$3.44

48%

Superloop (ASX:SLC)

A$1.76

A$3.31

46.9%

Click here to see the full list of 48 stocks from our Undervalued ASX Stocks Based On Cash Flows screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Charter Hall Group

Overview: Charter Hall Group (ASX:CHC) is one of Australia’s leading fully integrated property investment and funds management groups, with a market cap of A$7.07 billion.

Operations: Charter Hall's revenue segments include A$448.60 million from Funds Management, A$322.80 million from Property Investments, and A$73.30 million from Development Investments.

Estimated Discount To Fair Value: 49.9%

Charter Hall Group is trading at A$14.95, significantly below its estimated fair value of A$29.82, indicating it may be undervalued based on cash flows. Despite a net loss of A$222.1 million for FY24 and reduced revenue from the previous year, the company forecasts 8.3% annual revenue growth and expects to become profitable within three years, outperforming market averages. Additionally, Charter Hall offers a reliable dividend yield of 3.08%.

ASX:CHC Discounted Cash Flow as at Aug 2024
ASX:CHC Discounted Cash Flow as at Aug 2024

MAAS Group Holdings

Overview: MAAS Group Holdings Limited (ASX:MGH) provides construction materials, equipment, and services for the civil, infrastructure, and mining sectors in Australia, Vietnam, Indonesia, and internationally with a market cap of A$1.49 billion.

Operations: The company's revenue segments include Manufacturing (A$25.30 million), Commercial Real Estate (A$131.65 million), Construction Materials (A$385.93 million), Residential Real Estate (A$84.73 million), and Civil, Construction and Hire (A$340.68 million).