Undervalued companies, such as Seroja Investments and Golden Energy and Resources, are those that trade at a price below their actual values. Investors can benefit from buying these companies while they are discounted, because they gain when the market prices move towards the stocks’ true values. Below is a list of stocks I’ve compiled that are deemed undervalued based on the latest financial data.
Seroja Investments Limited (SGX:IW5)
Seroja Investments Limited, an investment holding company, provides marine cargo and coal transportation services in Indonesia and Singapore. Seroja Investments is run by CEO . With the company’s market capitalisation at SGD SGD16.79M, we can put it in the small-cap stocks category
IW5’s shares are currently trading at -34% less than its actual level of $0.06, at a price tag of S$0.043, based on its expected future cash flows. signalling an opportunity to buy the stock at a low price. Furthermore, IW5’s PE ratio is currently around 11.95x against its its Shipping peer level of, 13.75x suggesting that relative to other stocks in the industry, IW5’s stock can be bought at a cheaper price. IW5 is also in great financial shape, as short-term assets amply cover upcoming and long-term liabilities. It’s debt-to-equity ratio of 20.53% has been reducing over the past couple of years showing its capability to pay down its debt. Dig deeper into Seroja Investments here.
Golden Energy and Resources Limited (SGX:AUE)
Golden Energy and Resources Limited engages in the exploration, mining, and marketing of thermal coal in Indonesia. Founded in 1997, and currently headed by CEO Fuganto Widjaja, the company size now stands at 380 people and with the company’s market cap sitting at SGD SGD870.65M, it falls under the small-cap group.
AUE’s stock is now floating at around -74% below its value of $1.44, at a price of S$0.37, based on my discounted cash flow model. This mismatch indicates a potential opportunity to buy low. What’s even more appeal is that AUE’s PE ratio is around 10.56x while its index peer level trades at, 13.71x indicating that relative to its comparable company group, we can buy AUE’s stock at a cheaper price today. AUE is also a financially robust company, as short-term assets amply cover upcoming and long-term liabilities.
More on Golden Energy and Resources here.
Sunningdale Tech Ltd (SGX:BHQ)
Sunningdale Tech Ltd. manufactures and sells dies, tools, jigs, fixtures, high precision steel moulds, and plastic products. Established in 1995, and run by CEO Boo Hor Khoo, the company now has 9,000 employees and with the company’s market capitalisation at SGD SGD353.81M, we can put it in the small-cap group.