3 Stocks Estimated To Be Trading At Discounts Of Up To 42.6%
February 5, 2025
1 3 minutes read
In the midst of volatile global markets, characterized by fluctuating corporate earnings and competitive pressures in the AI sector, investors are keenly observing opportunities that may arise from recent developments. With central banks like the ECB reducing rates and the Fed maintaining its stance, market participants are considering stocks that might be trading below their intrinsic value. In this context, identifying undervalued stocks can offer potential advantages as they may provide a buffer against market turbulence while aligning with long-term investment strategies.
Name
Current Price
Fair Value (Est)
Discount (Est)
Wistron (TWSE:3231)
NT$102.00
NT$197.53
48.4%
Alltop Technology (TPEX:3526)
NT$270.50
NT$527.83
48.8%
Decisive Dividend (TSXV:DE)
CA$5.90
CA$11.79
50%
Northwest Bancshares (NasdaqGS:NWBI)
US$13.17
US$26.31
49.9%
Emporiki Eisagogiki Aftokiniton Ditrohon kai Mihanon Thalassis Societe Anonyme (ATSE:MOTO)
Let’s uncover some gems from our specialized screener.
Overview: NBTM New Materials Group Co., Ltd. produces and sells powder metallurgy mechanical parts globally, with a market cap of CN¥10.61 billion.
Operations: The company generates revenue from the production and sale of powder metallurgy mechanical parts across international markets.
Estimated Discount To Fair Value: 42.6%
NBTM New Materials Group, trading at CN¥18.33, is significantly undervalued with a fair value estimate of CN¥31.91. Despite its low dividend coverage by free cash flows, the company shows strong potential with earnings forecasted to grow 26.35% annually over the next three years, outpacing the Chinese market average of 25.1%. However, debt coverage by operating cash flow remains a concern amidst robust revenue growth projections exceeding 20% per year.
SHSE:600114 Discounted Cash Flow as at Feb 2025
Overview: Jiangxi Hongdu Aviation Industry Co., Ltd. operates in the aerospace sector, focusing on the manufacturing of aircraft and related products, with a market cap of CN¥22.04 billion.
Operations: The company generates its revenue of CN¥4.84 billion primarily from the production, processing, research and development, and services related to aviation products.
Estimated Discount To Fair Value: 37.3%
Jiangxi Hongdu Aviation Industry, at CN¥32.11, is trading well below its fair value estimate of CN¥51.19, indicating significant undervaluation based on cash flows. Despite a forecasted low return on equity of 4% in three years, the company’s earnings are projected to grow substantially at 77% annually, surpassing market averages. Revenue growth is also expected to be robust at 33.6% per year, although recent profit margins have declined from last year’s figures.
SHSE:600316 Discounted Cash Flow as at Feb 2025
Overview: Shenzhen Everwin Precision Technology Co., Ltd. operates in the precision manufacturing industry and has a market cap of CN¥25.24 billion.
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Estimated Discount To Fair Value: 12.8%
Shenzhen Everwin Precision Technology, priced at CN¥20.2, is trading below its estimated fair value of CN¥23.18, reflecting potential undervaluation based on cash flows. The company’s earnings are forecast to grow significantly at 26.1% annually, outpacing the market average of 25.1%. However, it carries a high level of debt and has a projected low return on equity of 17.2% in three years despite strong past earnings growth of 334.4%.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include SHSE:600114 SHSE:600316 and SZSE:300115.
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