In This Article:
In the last week, the Australian market has stayed flat, yet it has experienced a robust 17% increase over the past year with earnings forecast to grow by 12% annually. In this context, identifying stocks priced below their estimated value can present potential opportunities for investors seeking to capitalize on these growth trends.
Top 10 Undervalued Stocks Based On Cash Flows In Australia
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Mader Group (ASX:MAD) | A$5.39 | A$10.44 | 48.4% |
| EZZ Life Science Holdings (ASX:EZZ) | A$4.63 | A$8.78 | 47.3% |
| Charter Hall Group (ASX:CHC) | A$15.88 | A$31.44 | 49.5% |
| Genesis Minerals (ASX:GMD) | A$2.02 | A$3.92 | 48.5% |
| Ingenia Communities Group (ASX:INA) | A$5.01 | A$9.42 | 46.8% |
| Millennium Services Group (ASX:MIL) | A$1.145 | A$2.24 | 48.9% |
| Little Green Pharma (ASX:LGP) | A$0.089 | A$0.17 | 47.4% |
| IperionX (ASX:IPX) | A$3.59 | A$6.71 | 46.5% |
| Aussie Broadband (ASX:ABB) | A$3.68 | A$6.74 | 45.4% |
| Superloop (ASX:SLC) | A$1.75 | A$3.31 | 47.2% |
Let's explore several standout options from the results in the screener.
Genesis Minerals
Overview: Genesis Minerals Limited is involved in the exploration, production, and development of gold deposits in Western Australia, with a market cap of A$2.28 billion.
Operations: The company generates revenue of A$438.59 million from its mineral production, exploration, and development activities.
Estimated Discount To Fair Value: 48.5%
Genesis Minerals appears undervalued, trading at A$2.02 compared to a fair value estimate of A$3.92, suggesting significant upside potential. The company has transitioned to profitability with net income of A$84 million for the year ending June 2024, reversing a prior loss. Although revenue growth is forecasted at 17.8% annually—below the 20% threshold—it still outpaces the Australian market average of 5.5%. Analyst consensus supports potential price appreciation by nearly 29%.
Ingenia Communities Group
Overview: Ingenia Communities Group (ASX:INA) is a prominent operator, owner, and developer of quality residential communities and holiday accommodations with a market cap of A$2.04 billion.
Operations: Ingenia Communities Group generates revenue from several segments, including Tourism - Ingenia Holidays (A$134.84 million), Residential - Ingenia Gardens (A$23.67 million), Residential - Lifestyle Rental (A$86.50 million), and Residential - Lifestyle Development (A$205.81 million).