January 15, 2025
As global markets navigate a period of uncertainty marked by inflation fears and political shifts, investors are increasingly focused on identifying opportunities amid volatility. In such an environment, undervalued stocks can offer potential value, as they may be priced below their estimated worth due to market fluctuations or overlooked fundamentals.
|
Name |
Current Price |
Fair Value (Est) |
Discount (Est) |
|
Türkiye Sise Ve Cam Fabrikalari (IBSE:SISE) |
TRY39.18 |
TRY78.31 |
50% |
|
Sudarshan Chemical Industries (BSE:506655) |
₹1115.85 |
₹2228.29 |
49.9% |
|
Aguas Andinas (SNSE:AGUAS-A) |
CLP290.00 |
CLP578.96 |
49.9% |
|
MLG Oz (ASX:MLG) |
A$0.57 |
A$1.14 |
50% |
|
LifeMD (NasdaqGM:LFMD) |
US$4.90 |
US$9.77 |
49.8% |
|
Dino Polska (WSE:DNP) |
PLN433.60 |
PLN863.86 |
49.8% |
|
Cicor Technologies (SWX:CICN) |
CHF59.60 |
CHF118.58 |
49.7% |
|
Greenworks (Jiangsu) (SZSE:301260) |
CN¥13.95 |
CN¥27.87 |
49.9% |
|
Shinko Electric Industries (TSE:6967) |
¥5869.00 |
¥11708.96 |
49.9% |
|
Prodways Group (ENXTPA:PWG) |
€0.608 |
€1.21 |
49.9% |
Let's take a closer look at a couple of our picks from the screened companies.
Overview: Telefonaktiebolaget LM Ericsson (publ) offers mobile connectivity solutions for telecom operators and enterprise customers across multiple regions globally, with a market cap of approximately SEK316.67 billion.
Operations: The company's revenue segments include Networks at SEK156.41 billion, Enterprise at SEK25.47 billion, and Cloud Software and Services at SEK62.74 billion.
Estimated Discount To Fair Value: 41.5%
Telefonaktiebolaget LM Ericsson is trading at SEK95.02, significantly below its estimated fair value of SEK162.54, indicating it may be undervalued based on cash flows. The company is expected to achieve profitability within three years with a high annual earnings growth forecast of 73.16%. Recent strategic alliances and product innovations in 5G technology enhance its market position, although the dividend coverage remains weak. The appointment of Anthony Bartolo as CEO for a new venture could drive further growth initiatives.
Overview: Xiaomi Corporation is an investment holding company that offers hardware and software services both in Mainland China and internationally, with a market cap of HK$841.66 billion.
Operations: The company's revenue is primarily derived from its Smartphones segment at CN¥184.68 billion, followed by IoT and Lifestyle Products at CN¥93.58 billion, and Internet Services generating CN¥32.66 billion.
Estimated Discount To Fair Value: 23.4%
Xiaomi is trading at HK$33.6, significantly below its estimated fair value of HK$43.86, suggesting it is undervalued based on cash flows. The company reported robust earnings growth with net income rising to CNY 5.35 billion in Q3 2024 from CNY 4.87 billion a year earlier, and its earnings are expected to grow significantly over the next three years at a rate faster than the Hong Kong market average.
Overview: Dino Polska S.A. operates a network of mid-sized grocery supermarkets under the Dino brand in Poland, with a market cap of PLN42.51 billion.
Operations: The company's revenue segments include its network of mid-sized grocery supermarkets in Poland.
Estimated Discount To Fair Value: 49.8%
Dino Polska is trading at PLN 433.6, substantially below its estimated fair value of PLN 863.86, highlighting its undervaluation based on cash flows. Recent earnings show solid growth with Q3 net income of PLN 438.21 million, up from PLN 424.04 million year-on-year. The company's earnings and revenue are forecast to grow faster than the Polish market averages, contributing to its appeal as an undervalued investment opportunity in the region.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include OM:ERIC B SEHK:1810 and WSE:DNP.
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