3 Japanese Exchange Stocks Estimated To Be Trading At Up To 30.9% Discount

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Japan’s stock markets have recently experienced sharp losses, with the Nikkei 225 Index falling 6.0% and the broader TOPIX Index down 5.6%. Despite this downturn, opportunities may exist for discerning investors to find undervalued stocks that could offer significant potential. In the current market environment, a good stock is often characterized by strong fundamentals and a solid business model that can withstand economic fluctuations. Identifying such stocks trading at a discount can provide an attractive entry point for long-term growth.

Top 10 Undervalued Stocks Based On Cash Flows In Japan

Name

Current Price

Fair Value (Est)

Discount (Est)

CMK (TSE:6958)

¥543.00

¥1082.51

49.8%

en-japan (TSE:4849)

¥2709.00

¥5364.98

49.5%

Hottolink (TSE:3680)

¥372.00

¥725.33

48.7%

BayCurrent Consulting (TSE:6532)

¥4545.00

¥8562.16

46.9%

Medley (TSE:4480)

¥4060.00

¥8109.66

49.9%

EnomotoLtd (TSE:6928)

¥1494.00

¥2919.18

48.8%

Asahi Kasei (TSE:3407)

¥1094.00

¥2130.12

48.6%

Daiichi Kigenso Kagaku Kogyo (TSE:4082)

¥865.00

¥1608.24

46.2%

CIRCULATIONLtd (TSE:7379)

¥684.00

¥1284.57

46.8%

PeptiDream (TSE:4587)

¥2690.00

¥5071.62

47%

Click here to see the full list of 84 stocks from our Undervalued Japanese Stocks Based On Cash Flows screener.

Let's review some notable picks from our screened stocks.

Chugin Financial GroupInc

Overview: Chugin Financial Group, Inc., with a market cap of ¥300.45 billion, offers a range of financial services to both corporate and individual customers in Japan through its subsidiary The Chugoku Bank, Limited.

Operations: Chugin Financial Group, Inc. generates revenue by providing a variety of financial services to corporate and individual clients in Japan through its subsidiary, The Chugoku Bank, Limited.

Estimated Discount To Fair Value: 13.5%

Chugin Financial Group Inc. appears undervalued based on cash flows, trading at ¥1660, below its estimated fair value of ¥1919.99. The company has a robust revenue growth forecast of 28.6% annually, outpacing the JP market's 4.3%. Recent buyback activities totaling ¥1,666.47 million for 1,040,300 shares aim to enhance capital efficiency and shareholder returns. However, the allowance for bad loans stands low at 53%, which might require attention in future assessments.

TSE:5832 Discounted Cash Flow as at Aug 2024
TSE:5832 Discounted Cash Flow as at Aug 2024

Kokusai Electric

Overview: Kokusai Electric Corporation develops, manufactures, sells, repairs, and maintains semiconductor manufacturing equipment globally with a market cap of ¥988.50 billion.