In This Article:
The United Kingdom's stock market has recently faced challenges, with the FTSE 100 and FTSE 250 indices slipping due to weak trade data from China, highlighting concerns about global economic recovery. In such a climate, identifying undervalued stocks can be crucial for investors looking to capitalize on potential opportunities; these are stocks trading below their estimated fair value despite strong fundamentals or growth prospects.
Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom
Name | Current Price | Fair Value (Est) | Discount (Est) |
QinetiQ Group (LSE:QQ.) | £4.264 | £7.65 | 44.2% |
Begbies Traynor Group (AIM:BEG) | £0.94 | £1.68 | 43.9% |
AstraZeneca (LSE:AZN) | £102.40 | £190.61 | 46.3% |
Informa (LSE:INF) | £7.806 | £15.32 | 49% |
On the Beach Group (LSE:OTB) | £2.72 | £4.99 | 45.5% |
Duke Capital (AIM:DUKE) | £0.2875 | £0.55 | 47.4% |
Vistry Group (LSE:VTY) | £6.10 | £11.37 | 46.3% |
Deliveroo (LSE:ROO) | £1.749 | £3.21 | 45.6% |
Ibstock (LSE:IBST) | £1.86 | £3.23 | 42.3% |
Crest Nicholson Holdings (LSE:CRST) | £1.929 | £3.85 | 49.9% |
Here's a peek at a few of the choices from the screener.
Tristel
Overview: Tristel plc develops, manufactures, and sells infection prevention products across the United Kingdom, Australia, Germany, Western Europe, and internationally with a market cap of £188.42 million.
Operations: The company's revenue segments include £37.68 million from Hospital Medical Device Decontamination and £3.51 million from Hospital Environmental Surface Disinfection.
Estimated Discount To Fair Value: 18%
Tristel is currently trading at £3.95, below its estimated fair value of £4.82, suggesting it may be undervalued based on cash flows. While the dividend yield of 3.42% isn't well covered by earnings, the company forecasts robust growth with earnings expected to rise 19% annually, outpacing the UK market's 14.1%. Recent FDA-related developments for its disinfectant products could enhance future revenue streams and operational efficiencies in North America.
-
According our earnings growth report, there's an indication that Tristel might be ready to expand.
-
Take a closer look at Tristel's balance sheet health here in our report.
Informa
Overview: Informa plc is an international company specializing in event organization, digital services, and academic research across the UK, Continental Europe, the US, China, and other global markets with a market cap of £10.20 billion.
Operations: The company's revenue segments include Informa Tech at £423.90 million, Informa Connect at £631 million, Informa Markets at £1.72 billion, and Taylor & Francis at £698.20 million.