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The Australian market has shown resilience with the ASX200 closing up 0.51% at 8,416 points, buoyed by a positive response to China’s measured reaction to tariffs and strong performances in sectors like Materials and IT. In this environment of fluctuating global trade dynamics, identifying undervalued stocks becomes crucial for investors seeking opportunities; these are stocks that may be trading below their intrinsic value despite broader market trends.
Top 10 Undervalued Stocks Based On Cash Flows In Australia
Name | Current Price | Fair Value (Est) | Discount (Est) |
SKS Technologies Group (ASX:SKS) | A$2.10 | A$3.83 | 45.2% |
Pureprofile (ASX:PPL) | A$0.048 | A$0.092 | 47.7% |
Mader Group (ASX:MAD) | A$6.23 | A$11.90 | 47.6% |
Atlas Arteria (ASX:ALX) | A$5.01 | A$9.59 | 47.8% |
Symal Group (ASX:SYL) | A$1.91 | A$3.79 | 49.6% |
MLG Oz (ASX:MLG) | A$0.605 | A$1.16 | 47.9% |
ReadyTech Holdings (ASX:RDY) | A$3.16 | A$6.10 | 48.2% |
Charter Hall Group (ASX:CHC) | A$15.58 | A$28.74 | 45.8% |
SciDev (ASX:SDV) | A$0.48 | A$0.87 | 45% |
South32 (ASX:S32) | A$3.45 | A$6.63 | 47.9% |
Here we highlight a subset of our preferred stocks from the screener.
Nanosonics
Overview: Nanosonics Limited is an infection prevention company operating globally, with a market cap of A$1.02 billion.
Operations: The company's revenue is primarily derived from its Healthcare Equipment segment, amounting to A$170.01 million.
Estimated Discount To Fair Value: 36%
Nanosonics is currently trading at A$3.35, significantly below its estimated fair value of A$5.23, suggesting it is undervalued based on discounted cash flow analysis. With forecasted earnings growth of 24.3% annually and revenue growth above the market average, the company shows promising financial prospects despite a recent decline in profit margins from 12% to 7.6%. The appointment of Gerard Dalbosco as an Independent Non-Executive Director could strengthen governance and strategic oversight moving forward.
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The growth report we've compiled suggests that Nanosonics' future prospects could be on the up.
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Get an in-depth perspective on Nanosonics' balance sheet by reading our health report here.
South32
Overview: South32 Limited is a diversified metals and mining company with a market capitalization of approximately A$15.22 billion.
Operations: The company's revenue is derived from various segments including Cannington ($631 million), Cerro Matoso ($556 million), Sierra Gorda ($647 million), Brazil Alumina ($484 million), Mozal Aluminium ($812 million), Worsley Alumina ($1.36 billion), Hillside Aluminium ($1.72 billion), Australia Manganese ($436 million), Brazil Aluminium (BA) ($242 million), and South Africa Manganese ($343 million).