Unlock stock picks and a broker-level newsfeed that powers Wall Street. Upgrade Now
Codan And 2 Other ASX Stocks That May Be Trading At A Discount

In This Article:

As the ASX200 index shows resilience by closing up 0.66% at 8,402 points, investors are keenly observing market movements amid global trade uncertainties linked to Donald Trump's tariff decisions. With sectors like Financials and Materials leading gains, identifying undervalued stocks becomes crucial for those looking to capitalize on potential market inefficiencies. In this context, Codan and two other ASX stocks may present opportunities for investors seeking value in a fluctuating economic landscape.

Top 10 Undervalued Stocks Based On Cash Flows In Australia

Name

Current Price

Fair Value (Est)

Discount (Est)

Data#3 (ASX:DTL)

A$6.64

A$12.36

46.3%

Mader Group (ASX:MAD)

A$6.15

A$11.91

48.4%

Atlas Arteria (ASX:ALX)

A$5.01

A$9.67

48.2%

MLG Oz (ASX:MLG)

A$0.59

A$1.16

49.3%

Charter Hall Group (ASX:CHC)

A$15.15

A$28.71

47.2%

Telix Pharmaceuticals (ASX:TLX)

A$26.49

A$46.81

43.4%

ReadyTech Holdings (ASX:RDY)

A$3.15

A$6.20

49.2%

Gold Road Resources (ASX:GOR)

A$2.46

A$4.62

46.8%

Syrah Resources (ASX:SYR)

A$0.255

A$0.47

46.1%

Vault Minerals (ASX:VAU)

A$0.37

A$0.67

45%

Click here to see the full list of 43 stocks from our Undervalued ASX Stocks Based On Cash Flows screener.

Underneath we present a selection of stocks filtered out by our screen.

Codan

Overview: Codan Limited develops technology solutions for organizations such as the United Nations, security and military groups, government departments, individuals, and small-scale miners, with a market cap of A$2.83 billion.

Operations: The company's revenue is derived from two main segments: Communications, which contributed A$326.91 million, and Metal Detection, which generated A$219.85 million.

Estimated Discount To Fair Value: 41.8%

Codan is trading at A$15.55, significantly below its estimated fair value of A$26.7, suggesting it may be undervalued based on cash flows. The company's earnings are projected to grow at 17.42% annually, outpacing the Australian market's 12.7% forecasted growth rate. Revenue is expected to increase by 10.6% per year, also above market expectations but not exceeding the high-growth benchmark of 20%. Codan's strong return on equity forecast further supports its valuation appeal.

ASX:CDA Discounted Cash Flow as at Jan 2025
ASX:CDA Discounted Cash Flow as at Jan 2025

Ingenia Communities Group

Overview: Ingenia Communities Group (ASX:INA) is a prominent operator, owner, and developer of residential communities and holiday accommodations with a market cap of A$2.18 billion.

Operations: Ingenia Communities Group generates revenue from several segments, including Tourism - Ingenia Holidays (A$134.84 million), Residential - Lifestyle Development (A$205.81 million), Residential - Lifestyle Rental (A$86.50 million), Fuel, Food & Beverage (A$19.26 million), and Residential - Ingenia Gardens (A$23.67 million).