ASX Stocks That May Be Undervalued In September 2024
In This Article:
The Australian market has remained flat over the last week despite a 3.6% gain in the Financials sector, and it is up 10% over the past year with earnings expected to grow by 12% annually over the next few years. In this context, identifying undervalued stocks that have strong fundamentals and growth potential can be a strategic move for investors looking to capitalize on future gains.
Top 10 Undervalued Stocks Based On Cash Flows In Australia
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Elders (ASX:ELD) | A$9.08 | A$18.11 | 49.9% |
| Hansen Technologies (ASX:HSN) | A$4.37 | A$8.23 | 46.9% |
| Genesis Minerals (ASX:GMD) | A$2.07 | A$4.05 | 48.9% |
| Ansell (ASX:ANN) | A$30.05 | A$57.18 | 47.4% |
| HMC Capital (ASX:HMC) | A$8.32 | A$15.48 | 46.3% |
| MLG Oz (ASX:MLG) | A$0.64 | A$1.19 | 46% |
| Millennium Services Group (ASX:MIL) | A$1.145 | A$2.24 | 48.9% |
| Clover (ASX:CLV) | A$0.3925 | A$0.72 | 45.8% |
| Superloop (ASX:SLC) | A$1.69 | A$3.31 | 49% |
| Sandfire Resources (ASX:SFR) | A$8.04 | A$15.03 | 46.5% |
Here we highlight a subset of our preferred stocks from the screener.
Ingenia Communities Group
Overview: Ingenia Communities Group (ASX:INA) is a leading operator, owner, and developer offering quality residential communities and holiday accommodation with a market cap of A$2.12 billion.
Operations: Ingenia Communities Group generates revenue from several segments, including A$19.26 million from Fuel, Food & Beverage, A$134.84 million from Tourism - Ingenia Holidays, A$23.67 million from Residential - Ingenia Gardens, A$86.50 million from Residential - Lifestyle Rental, and A$205.81 million from Residential - Lifestyle Development.
Estimated Discount To Fair Value: 44.8%
Ingenia Communities Group appears undervalued based on cash flows, trading at A$5.19 compared to an estimated fair value of A$9.4. Despite recent earnings showing a decline in net income to A$14.02 million from A$64.37 million, revenue increased from A$394.47 million to A$472.29 million year-over-year. The company’s earnings are forecasted to grow by 25.7% annually, outpacing the Australian market average of 12.1%.
Nuix
Overview: Nuix Limited provides investigative analytics and intelligence software solutions across the Asia Pacific, the Americas, Europe, the Middle East, and Africa with a market cap of A$1.61 billion.
Operations: The company's primary revenue segment is Software & Programming, generating A$220.62 million.