In This Article:
The Singapore stock market continues to show resilience amidst global economic fluctuations, attracting attention from investors looking for value in a diverse market landscape. In this context, understanding what constitutes an undervalued stock is crucial, especially when considering investments that may offer significant intrinsic discounts in the current environment.
Top 5 Undervalued Stocks Based On Cash Flows In Singapore
Name | Current Price | Fair Value (Est) | Discount (Est) |
LHN (SGX:41O) | SGD0.33 | SGD0.38 | 12% |
Singapore Technologies Engineering (SGX:S63) | SGD4.32 | SGD8.20 | 47.3% |
Hongkong Land Holdings (SGX:H78) | US$3.22 | US$5.80 | 44.5% |
Frasers Logistics & Commercial Trust (SGX:BUOU) | SGD0.925 | SGD1.65 | 44% |
Digital Core REIT (SGX:DCRU) | US$0.575 | US$1.10 | 47.7% |
Seatrium (SGX:5E2) | SGD1.41 | SGD2.61 | 46% |
Nanofilm Technologies International (SGX:MZH) | SGD0.84 | SGD1.47 | 42.7% |
Let's dive into some prime choices out of from the screener
Seatrium
Overview: Seatrium Limited specializes in engineering solutions for the offshore, marine, and energy sectors with a market capitalization of SGD 4.80 billion.
Operations: The company generates revenue primarily through its segments in rigs and floaters, repairs and upgrades, offshore platforms, and specialized shipbuilding which collectively contribute SGD 7.26 billion, along with a smaller segment in ship chartering bringing in SGD 31.63 million.
Estimated Discount To Fair Value: 46%
Seatrium Limited is trading at S$1.41, significantly below its estimated fair value of S$2.61, marking a 46% undervaluation based on discounted cash flow analysis. Analyst consensus forecasts a substantial 92.4% potential increase in stock price, with earnings expected to grow by 72.23% annually. Despite this growth, its projected Return on Equity of 8.2% remains modest compared to benchmarks. Recent contracts with GE Vernova and BP hint at robust operational expansion but share price volatility persists, reflecting market caution amidst recent high-profile executive changes and legal settlements.
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The analysis detailed in our Seatrium growth report hints at robust future financial performance.
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Click here to discover the nuances of Seatrium with our detailed financial health report.
Hongkong Land Holdings
Overview: Hongkong Land Holdings Limited operates in the investment, development, and management of properties across Hong Kong, Macau, Mainland China, Southeast Asia and other international locations with a market cap of approximately $7.11 billion.