In This Article:
Over the last 7 days, the Australian market has risen 2.1% and is up 11% over the last 12 months, with earnings forecast to grow by 13% annually. In this favorable environment, identifying undervalued stocks like PEXA Group and two others can present attractive opportunities for investors looking to capitalize on potential growth.
Top 10 Undervalued Stocks Based On Cash Flows In Australia
Name | Current Price | Fair Value (Est) | Discount (Est) |
LaserBond (ASX:LBL) | A$0.725 | A$1.37 | 47.1% |
Mader Group (ASX:MAD) | A$5.37 | A$10.56 | 49.1% |
Ingenia Communities Group (ASX:INA) | A$5.31 | A$10.56 | 49.7% |
Telix Pharmaceuticals (ASX:TLX) | A$19.97 | A$39.05 | 48.9% |
Regal Partners (ASX:RPL) | A$3.41 | A$6.64 | 48.6% |
Megaport (ASX:MP1) | A$11.79 | A$21.54 | 45.3% |
Millennium Services Group (ASX:MIL) | A$1.145 | A$2.24 | 48.9% |
Airtasker (ASX:ART) | A$0.265 | A$0.52 | 49.4% |
Sandfire Resources (ASX:SFR) | A$8.79 | A$16.11 | 45.4% |
Matrix Composites & Engineering (ASX:MCE) | A$0.30 | A$0.55 | 45.1% |
Here we highlight a subset of our preferred stocks from the screener.
PEXA Group
Overview: PEXA Group Limited operates a digital property settlements platform in Australia and has a market cap of A$2.46 billion.
Operations: PEXA Group Limited generates revenue through its digital property settlements platform in Australia.
Estimated Discount To Fair Value: 26.2%
PEXA Group is trading at A$13.88, significantly below its estimated fair value of A$18.81, indicating it may be undervalued based on cash flows. The company’s revenue is forecast to grow 13.7% annually, outpacing the broader Australian market's growth rate of 5.3%. Despite a low return on equity forecast (7.8%) in three years, PEXA is expected to become profitable within the same period with earnings growth projected at 45.1% per year. Recent executive changes include CEO Glenn King's planned retirement by FY24-25 end and Georgina Lynch's appointment as an Independent Non-Executive Director effective September 2024.
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Our growth report here indicates PEXA Group may be poised for an improving outlook.
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Get an in-depth perspective on PEXA Group's balance sheet by reading our health report here.
Sandfire Resources
Overview: Sandfire Resources Limited is a mining company involved in the exploration, evaluation, and development of mineral tenements and projects with a market cap of A$4.02 billion.
Operations: The company's revenue segments include MATSA Copper Operations generating $581.75 million and Degrussa Copper Operations contributing $94.49 million, with a segment adjustment of $125.34 million.