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Estimated Discount To Fair Value: 10.9%

Lovisa Holdings is trading at A$27.85, below its estimated fair value of A$31.25, indicating potential undervaluation based on cash flows. The company's revenue and earnings are forecast to grow faster than the Australian market, with earnings expected to increase by 15.17% annually. Despite this growth trajectory, the dividend yield of 3.12% is not well covered by earnings, which may pose a risk for income-focused investors seeking sustainable payouts.

• In light of our recent growth report, it seems possible that Lovisa Holdings' financial performance will exceed current levels.

• Click to explore a detailed breakdown of our findings in Lovisa Holdings' balance sheet health report.

Technology One

Overview: Technology One Limited develops, markets, sells, implements, and supports integrated enterprise business software solutions both in Australia and internationally with a market cap of A$9.94 billion.

Operations: The company's revenue segments include Software at A$347.35 million, Corporate at A$87.02 million, and Consulting at A$72.17 million.

Estimated Discount To Fair Value: 32.4%

Technology One, trading at A$30.43, is significantly undervalued based on cash flows with an estimated fair value of A$45. Earnings are projected to grow annually by 16.1%, outpacing the Australian market's growth rate of 12.4%. Revenue grew from A$429.38 million to A$506.54 million year-over-year, reflecting robust performance despite earnings growth not being classified as significant. The company also announced a dividend increase for the period ending September 2024, enhancing shareholder returns.

• According our earnings growth report, there's an indication that Technology One might be ready to expand.

• Take a closer look at Technology One's balance sheet health here in our report.

Key Takeaways

• Reveal the 40 hidden gems among our Undervalued ASX Stocks Based On Cash Flows screener with a single click here.

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Curious About Other Options?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.

• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.

• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

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 ASX:ANN ASX:LOV and ASX:TNE.

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