The Australian market has experienced a flat performance over the last week, yet it boasts an impressive 17% increase over the past year, with earnings projected to grow by 12% annually. In such an environment, identifying stocks that are estimated to be trading below their intrinsic value can offer potential opportunities for investors looking to capitalize on future growth prospects.
Name | Current Price | Fair Value (Est) | Discount (Est) |
Mader Group (ASX:MAD) | A$5.60 | A$10.42 | 46.3% |
MLG Oz (ASX:MLG) | A$0.63 | A$1.15 | 45.3% |
Charter Hall Group (ASX:CHC) | A$15.79 | A$31.43 | 49.8% |
Ingenia Communities Group (ASX:INA) | A$4.93 | A$9.41 | 47.6% |
Treasury Wine Estates (ASX:TWE) | A$12.29 | A$24.19 | 49.2% |
Millennium Services Group (ASX:MIL) | A$1.145 | A$2.24 | 48.9% |
IDP Education (ASX:IEL) | A$14.79 | A$27.65 | 46.5% |
Ai-Media Technologies (ASX:AIM) | A$0.76 | A$1.42 | 46.3% |
Superloop (ASX:SLC) | A$1.715 | A$3.31 | 48.2% |
Mineral Resources (ASX:MIN) | A$50.67 | A$95.49 | 46.9% |
We're going to check out a few of the best picks from our screener tool.
Overview: Infomedia Ltd is a technology company that develops and supplies electronic parts catalogues, service quoting software, and e-commerce solutions for the automotive industry worldwide, with a market cap of A$579.00 million.
Operations: The company's revenue segment includes Publishing - Periodicals, generating A$140.83 million.
Estimated Discount To Fair Value: 35.9%
Infomedia is trading at A$1.55, significantly below its estimated fair value of A$2.41, indicating it may be undervalued based on cash flows. Despite large one-off items impacting financial results, earnings grew by 32.4% last year and are expected to grow significantly over the next three years at 22% annually, outpacing the Australian market's growth rate of 12.2%. However, its dividend yield of 2.72% is not well covered by earnings.
Overview: Nanosonics Limited is a global infection prevention company with a market cap of A$1.12 billion.
Operations: The company's revenue is derived from its Healthcare Equipment segment, which generated A$170.01 million.
Estimated Discount To Fair Value: 27.5%
Nanosonics is trading at A$3.69, below its estimated fair value of A$5.09, suggesting potential undervaluation based on cash flows. Despite a recent drop from the S&P/ASX 200 Index and declining profit margins from 12% to 7.6%, earnings are forecasted to grow significantly at 23.6% annually over the next three years, surpassing the Australian market's growth rate of 12.2%. However, revenue growth remains modest at an expected annual rate of 8.7%.
Overview: Sandfire Resources Limited is a mining company involved in the exploration, evaluation, and development of mineral tenements and projects, with a market cap of A$5.10 billion.
Operations: The company's revenue is primarily derived from the MATSA Copper Operations at $565.68 million, the Motheo Copper Project at $346.47 million, and the Degrussa Copper Operations at $29.40 million.
Estimated Discount To Fair Value: 25.5%
Sandfire Resources is trading at A$11.14, below its estimated fair value of A$14.96, indicating it is undervalued based on cash flows. Despite reporting a net loss of US$17.35 million for the fiscal year ending June 2024, the company has been added to the S&P/ASX 100 Index and expects significant annual earnings growth of 40.24%. Revenue is forecasted to grow faster than the Australian market at 8.8% annually over three years.
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.
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