Undervalued companies, such as AEM Holdings and CITIC Envirotech, trade at a price less than their true values. Investors can profit from the difference by investing in these stocks as the current market prices should eventually move towards their true values. If capital gains are what you’re after in your next investment, I’ve put together a list of undervalued stocks you may be interested in, based on the latest financial data from each company.
AEM Holdings Ltd (SGX:AWX)
AEM Holdings Ltd, an investment holding company, provides solutions in equipment systems; and precision components and related manufacturing services for various industries. AEM Holdings is currently run by Yean Chok. It currently has a market cap of SGD SGD406.56M placing it in the small-cap category
AWX’s shares are currently hovering at around -61% below its intrinsic level of $15.49, at a price tag of S$6.02, based on its expected future cash flows. This difference in price and value gives us a chance to buy low. In addition to this, AWX’s PE ratio stands at 11.11x relative to its index peer level of, 13.53x indicating that relative to its comparable company group, you can buy AWX for a cheaper price. AWX is also in good financial health, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. AWX also has a miniscule amount of debt on its balance sheet, which gives it headroom to grow and financial flexibility. Continue research on AEM Holdings here.
CITIC Envirotech Ltd. (SGX:CEE)
CITIC Envirotech Ltd. provides water and wastewater treatment, water supply, and recycling services in the People’s Republic of China, Singapore, the United States, and Malaysia. Formed in 1996, and currently lead by YuCheng Lin, the company currently employs 1,740 people and with the company’s market cap sitting at SGD SGD1.61B, it falls under the small-cap group.
CEE’s shares are currently hovering at around -82% lower than its real value of $3.78, at the market price of S$0.68, based on my discounted cash flow model. signalling an opportunity to buy the stock at a low price. In addition to this, CEE’s PE ratio stands at 11.14x against its its Commercial Services peer level of, 12.67x meaning that relative to its competitors, CEE’s shares can be purchased for a lower price. CEE is also strong financially, as current assets can cover liabilities in the near term and over the long run. The stock’s debt-to-equity ratio of 39.36% has been diminishing over time, signalling its ability to reduce its debt obligations year on year. Interested in CITIC Envirotech? Find out more here.