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The United Kingdom's FTSE 100 index has recently faced downward pressure, influenced by weak trade data from China and declining commodity prices, which have impacted several key sectors. In this environment of uncertainty, identifying stocks that may be trading below their intrinsic value presents an opportunity for investors to potentially capitalize on mispriced assets.
Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom
Name | Current Price | Fair Value (Est) | Discount (Est) |
Savills (LSE:SVS) | £9.45 | £16.63 | 43.2% |
Gooch & Housego (AIM:GHH) | £3.71 | £7.12 | 47.9% |
Aptitude Software Group (LSE:APTD) | £2.83 | £5.15 | 45% |
NIOX Group (AIM:NIOX) | £0.616 | £1.10 | 43.8% |
On the Beach Group (LSE:OTB) | £2.635 | £4.78 | 44.9% |
Trainline (LSE:TRN) | £2.866 | £5.18 | 44.7% |
ECO Animal Health Group (AIM:EAH) | £0.72 | £1.28 | 43.6% |
Kromek Group (AIM:KMK) | £0.051 | £0.10 | 49.6% |
Ibstock (LSE:IBST) | £1.774 | £3.24 | 45.3% |
CVS Group (AIM:CVSG) | £10.34 | £18.55 | 44.3% |
Let's dive into some prime choices out of the screener.
CVS Group
Overview: CVS Group plc operates in the veterinary, pet crematoria, online pharmacy, and retail sectors, with a market cap of £741.79 million.
Operations: The company generates revenue from several segments, including Veterinary Practices (£600.50 million), Online Retail Business (£48.50 million), Laboratories (£30.90 million), and Crematoria (£12.20 million).
Estimated Discount To Fair Value: 44.3%
CVS Group is trading at £10.34, significantly below its estimated fair value of £18.55, suggesting undervaluation based on discounted cash flow analysis. While earnings are forecast to grow at 21.24% annually, outpacing the UK market's growth rate, revenue growth is slower at 5.4%. Recent financials show a decline in net income and profit margins compared to last year, with interest payments not well covered by earnings, indicating some financial challenges despite expected profit growth.
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Our growth report here indicates CVS Group may be poised for an improving outlook.
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Navigate through the intricacies of CVS Group with our comprehensive financial health report here.
Genus
Overview: Genus plc is an animal genetics company with operations across North America, Latin America, the United Kingdom, Europe, the Middle East, Russia, Africa, and Asia and has a market cap of approximately £1.05 billion.
Operations: The company's revenue is primarily derived from its Genus ABS segment, which includes operations in Asia and generates £311.10 million, and the Genus PIC segment, also including Asian operations, contributing £358 million.