3 stocks estimated to be undervalued by up to 49.7%

In a week marked by cautious comments from the Federal Reserve and fears of a government shutdown, global markets saw notable volatility, with US stocks falling despite a late-week bounce. Amid these uncertainties, the search for undervalued stocks is becoming increasingly relevant as investors look to identify opportunities that could provide potential value in a volatile market environment.

Name	Current price	Fair Value (East)	Discount (East)
Shenzhen Lifotronic Technology (SHSE:688389)	15.45 CN¥	30.78 CN¥	49.8%
Sandy Spring Bancorp (NasdaqGS:SASR)	$34.58	$68.97	49.9%
Lindab International (OM:LIAB)	SEK 226.40	SEK 451.04	49.8%
Absolent Air Care Group (OM:ABSO)	SEK 255.00	SEK 509.82	50%
BYD Electronic (International) (SEHK:285)	$43.35	$86.67	50%
The public limited company STIF (ENXTPA:ALSTI)	€24.60	€49.13	49.9%
Surgery Science Sweden (OM:SUS)	SEK 159.10	SEK 317.00	49.8%
KebNi (OM:KEBNI B)	SEK 1,084	SEK 2.17	50%
Salmones Camanchaca (SNSE: SALMOCAM)	CLP2400.00	CLP4798.13	50%
Paycor HCM (NasdaqGS:PYCR)	$19.33	$38.52	49.8%

Click here to see the full list of 874 stocks in our Undervalued Stocks by Cash Flow filter tool.

We will examine a selection of the results of our analysis.

Overview: Mobvista Inc., together with its subsidiaries, provides advertising and marketing technology services critical to the development of the mobile Internet ecosystem globally, with a market cap of $12.65 billion.

Operations: Revenue segments (in millions of dollars): Mobvista Inc. generates its revenue primarily through advertising and marketing technology services that support the global mobile internet ecosystem.

Estimated reduction to fair value: 45.5%

Mobvista is trading at $8.7, significantly below its estimated fair value of $15.95, suggesting an undervaluation based on cash flows. The company reported strong revenue growth, with third-quarter sales reaching $416.46 million, up from $269.37 million a year earlier, and net income rising to $9.9 million from $3.78 million USD. However, recent financial results have been affected by large one-offs and share price volatility remains high over the past three months.

SEHK:1860 Reduced cash flow in December 2024

Overview: S Foods Inc., a meat company, is involved in the manufacturing, wholesaling, retailing, and food service of meat-related food products in Japan, with a market cap of ¥87.26 billion.

Operations: Revenue Segments (in millions of ¥): Manufacturing ¥45,000, Wholesale ¥30,000, Retail ¥15,000, Food Service ¥10,000.

Estimated reduction to fair value: 49.7%

S Foods is trading at ¥2,755, notably below its estimated fair value of ¥5,472.35, indicating that it may be undervalued based on cash flows. The company is forecasting significant earnings growth of 32.9% annually over the next three years. However, profit margins fell to 0.7% from 2.9% last year, and a dividend yield of 3.27% is not well supported by earnings or free cash flow, despite recent increases of dividends at 44 JPY per share.

TSE:2292 Reduced cash flow in December 2024

Overview: DIP Corporation, with a market cap of ¥128.55 billion, is a workforce solutions company that provides staffing services in Japan.

Operations: Revenue segments (in millions of ¥):

Estimated reduction to fair value: 43.8%

DIP Corporation is trading at ¥2,487, well below its estimated fair value of ¥4,421.85, highlighting a potential undervaluation based on cash flows. The company anticipates earnings growth of 14.1% annually, beating the JP market’s 7.9%. Revenues are expected to grow by 10.6% per year. Despite a recent dividend increase to ¥47 per share for Q2 2024, the dividend balance sheet remains volatile and requires close monitoring for sustainability reasons.

TSE:2379 Reduced cash flow in December 2024

This article from Simply Wall St is general in nature. We only provide commentary based on historical data and analyst forecasts using an unbiased methodology, and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. We aim to provide you with focused long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or quality materials. Simply Wall St has no position in any of the stocks mentioned.

Companies discussed in this article include SEHK:1860 TSE:2292 and TSE:2379.

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