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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% |
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%.
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).