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The Australian market has shown robust performance, rising 2.1% in the last 7 days and climbing 13% over the past year, with earnings forecasted to grow by 12% annually. In this promising environment, identifying undervalued stocks like Genesis Minerals can provide investors with opportunities to capitalize on potential gains as these stocks may be trading below their fair value.
Top 10 Undervalued Stocks Based On Cash Flows In Australia
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Hansen Technologies (ASX:HSN) | A$4.33 | A$8.20 | 47.2% |
| Duratec (ASX:DUR) | A$1.385 | A$2.60 | 46.7% |
| Genesis Minerals (ASX:GMD) | A$2.12 | A$3.99 | 46.9% |
| Charter Hall Group (ASX:CHC) | A$15.91 | A$29.26 | 45.6% |
| Megaport (ASX:MP1) | A$7.38 | A$13.56 | 45.6% |
| Ingenia Communities Group (ASX:INA) | A$5.13 | A$9.36 | 45.2% |
| Millennium Services Group (ASX:MIL) | A$1.145 | A$2.24 | 48.9% |
| Clover (ASX:CLV) | A$0.36 | A$0.72 | 49.8% |
| Ai-Media Technologies (ASX:AIM) | A$0.75 | A$1.42 | 47.1% |
| Superloop (ASX:SLC) | A$1.79 | A$3.31 | 46% |
Here we highlight a subset of our preferred stocks from the screener.
Genesis Minerals
Overview: Genesis Minerals Limited focuses on the exploration, production, and development of gold deposits in Western Australia and has a market cap of A$2.39 billion.
Operations: Genesis Minerals Limited generates revenue of A$438.59 million from its mineral production, exploration, and development activities in Western Australia.
Estimated Discount To Fair Value: 46.9%
Genesis Minerals (A$2.12) is trading significantly below its estimated fair value of A$3.99, presenting a potential undervaluation based on discounted cash flow analysis. The company reported a substantial increase in sales to A$438.59 million for the year ended June 30, 2024, up from A$76.96 million the previous year, and turned profitable with net income of A$84 million compared to a loss of A$111.77 million previously. Earnings are expected to grow at 21.9% per year over the next three years, outpacing market averages, though shareholders have faced dilution recently and return on equity is forecasted to be modest at 12.7%.
Ingenia Communities Group
Overview: Ingenia Communities Group (ASX:INA) is a leading operator, owner, and developer of quality residential communities and holiday accommodation with a market cap of A$2.09 billion.
Operations: The company's revenue segments include A$19.26 million from Fuel, Food & Beverage, A$134.84 million from Tourism - Ingenia Holidays, A$23.67 million from Residential - Ingenia Gardens, A$86.50 million from Residential - Lifestyle Rental, and A$205.81 million from Residential - Lifestyle Development.