In This Article:
Straco and Oxley Holdings are companies that are currently trading below what they’re actually worth. 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.
Straco Corporation Limited (SGX:S85)
Straco Corporation Limited, together with its subsidiaries, develops and manages tourism-related businesses in Singapore and the People’s Republic of China. The company was established in 2002 and with the market cap of SGD SGD653.98M, it falls under the small-cap stocks category.
S85’s stock is currently trading at -50% lower than its value of $1.53, at a price tag of S$0.77, according to my discounted cash flow model. The divergence signals an opportunity to buy S85 shares at a low price. Moreover, S85’s PE ratio is currently around 13.78x relative to its Hospitality peer level of, 22.41x indicating that relative to its peers, we can invest in S85 at a lower price. S85 is also strong in terms of its financial health, with near-term assets able to cover upcoming and long-term liabilities.
More on Straco here.
Oxley Holdings Limited (SGX:5UX)
Oxley Holdings Limited, an investment holding company, engages in property investment and development, and project management activities in Singapore, the United Kingdom, Ireland, Cambodia, Malaysia, Indonesia, China, Japan, Myanmar, Australia, and Cyprus. Oxley Holdings was formed in 2010 and with the company’s market cap sitting at SGD SGD2.00B, it falls under the mid-cap stocks category.
5UX’s stock is now trading at -35% beneath its true value of $0.79, at the market price of S$0.52, based on its expected future cash flows. This price and value mismatch indicates a potential opportunity to buy the stock at a low price. In addition to this, 5UX’s PE ratio is trading at 9.76x compared to its Real Estate peer level of, 10.05x meaning that relative to its peers, we can invest in 5UX at a lower price. 5UX is also a financially robust company, with near-term assets able to cover upcoming and long-term liabilities. The stock’s debt-to-equity ratio of 209.16% has been reducing for the last couple of years signifying its capacity to pay down its debt. More on Oxley Holdings here.
Yanlord Land Group Limited (SGX:Z25)
Yanlord Land Group Limited, an investment holding company, engages in the investment, development, and management of real estate properties in the People’s Republic of China. Yanlord Land Group was established in 1993 and has a market cap of SGD SGD3.40B, putting it in the mid-cap stocks category.