3 UK Stocks Priced At Up To 47.9% Below Intrinsic Estimates

The United Kingdom's FTSE 100 index has recently faced headwinds, closing lower amid concerns over weak trade data from China, which continues to impact global markets. In such a challenging environment, identifying undervalued stocks that are priced below their intrinsic estimates can offer potential opportunities for investors seeking value amidst broader market uncertainties.

Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom

Name	Current Price	Fair Value (Est)	Discount (Est)
Gaming Realms (AIM:GMR)	£0.365	£0.66	44.9%
GlobalData (AIM:DATA)	£1.63	£3.13	47.9%
AstraZeneca (LSE:AZN)	£116.50	£217.87	46.5%
Victrex (LSE:VCT)	£9.82	£18.31	46.4%
Likewise Group (AIM:LIKE)	£0.194	£0.37	47.7%
Harbour Energy (LSE:HBR)	£1.8345	£3.32	44.7%
Ibstock (LSE:IBST)	£1.692	£3.09	45.2%
TI Fluid Systems (LSE:TIFS)	£1.964	£3.77	47.9%
Kromek Group (AIM:KMK)	£0.059	£0.11	48.4%
Optima Health (AIM:OPT)	£1.825	£3.34	45.3%

Click here to see the full list of 50 stocks from our Undervalued UK Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results.

Judges Scientific (AIM:JDG)

Overview: Judges Scientific plc designs, manufactures, and sells scientific instruments with a market cap of £463.79 million.

Operations: The company generates revenue from two main segments: Vacuum (£65.40 million) and Materials Sciences (£70.20 million).

Estimated Discount To Fair Value: 27.2%

Judges Scientific is trading at £69.8, below its estimated fair value of £95.89, indicating it may be undervalued based on cash flows. The company's earnings are forecast to grow significantly at 29.3% annually, outpacing the UK market's 14.3%. Despite a high level of debt, its revenue growth rate of 7.2% surpasses the market average of 3.8%. Recent board changes include Ralph Elman becoming Non-Executive Chair in January 2025.

• In light of our recent growth report, it seems possible that Judges Scientific's financial performance will exceed current levels.
• Navigate through the intricacies of Judges Scientific with our comprehensive financial health report here.

Hunting (LSE:HTG)

Overview: Hunting PLC, with a market cap of £456.68 million, manufactures components, technology systems, and precision parts on a global scale.

Operations: The company's revenue segments include $240.60 million from Asia Pacific, $230.30 million from Hunting Titan, $147.10 million from Subsea Technologies, $388.40 million from North America (excluding Subsea Technologies), and $87.70 million from Europe, Middle East and Africa (EMEA).

Estimated Discount To Fair Value: 42.5%

Hunting PLC is trading at £2.9, significantly below its estimated fair value of £5.03, suggesting undervaluation based on cash flows. Despite a net loss of US$28 million in 2024, earnings are expected to grow substantially by 64.46% annually, with profitability anticipated within three years. The recent acquisition of Organic Oil Recovery technology for $17.5 million enhances Hunting's technological capabilities and positions it for growth across key markets globally.

• According our earnings growth report, there's an indication that Hunting might be ready to expand.
• Unlock comprehensive insights into our analysis of Hunting stock in this financial health report.

TI Fluid Systems (LSE:TIFS)

Overview: TI Fluid Systems plc designs, manufactures, and sells thermal and fluid system solutions across Europe, Africa, the Asia Pacific, North America, and Latin America with a market cap of approximately £966.57 million.

Operations: TI Fluid Systems plc generates its revenue by providing thermal and fluid system solutions across various regions, including Europe, Africa, the Asia Pacific, North America, and Latin America.

Estimated Discount To Fair Value: 47.9%

TI Fluid Systems is trading at £1.96, significantly below its estimated fair value of £3.77, highlighting potential undervaluation based on cash flows. Earnings are forecast to grow substantially by 56.83% annually over the next three years, outpacing UK market growth rates. However, profit margins have declined from 2.4% to 1%, and interest payments aren't well covered by earnings. The recent acquisition by ABC and executive changes may impact future strategic direction and financial stability.

• The growth report we've compiled suggests that TI Fluid Systems' future prospects could be on the up.
• Get an in-depth perspective on TI Fluid Systems' balance sheet by reading our health report here.

Next Steps

• Click here to access our complete index of 50 Undervalued UK Stocks Based On Cash Flows.
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Ready To Venture Into Other Investment Styles?

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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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