Ansell And 2 Other ASX Stocks That May Be Undervalued
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The ASX200 closed up 0.39% at 8,013 points, driven by a rally in bank stocks while Energy and mining sectors slumped due to falling commodity prices. Amid these market fluctuations, identifying undervalued stocks can offer potential opportunities for investors seeking value. In the current market environment where Financials and Discretionary sectors are performing well, finding stocks that may be trading below their intrinsic value is crucial. This article will explore Ansell and two other ASX-listed companies that might be considered undervalued based on recent market dynamics and economic conditions.
Top 10 Undervalued Stocks Based On Cash Flows In Australia
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Mader Group (ASX:MAD) | A$5.28 | A$10.48 | 49.6% |
| Hansen Technologies (ASX:HSN) | A$4.37 | A$8.23 | 46.9% |
| Ansell (ASX:ANN) | A$30.04 | A$57.55 | 47.8% |
| HMC Capital (ASX:HMC) | A$8.30 | A$15.48 | 46.4% |
| Charter Hall Group (ASX:CHC) | A$15.60 | A$29.58 | 47.3% |
| Millennium Services Group (ASX:MIL) | A$1.145 | A$2.24 | 48.9% |
| Genesis Minerals (ASX:GMD) | A$2.18 | A$4.06 | 46.4% |
| Clover (ASX:CLV) | A$0.38 | A$0.72 | 47.5% |
| Superloop (ASX:SLC) | A$1.725 | A$3.31 | 48% |
| Sandfire Resources (ASX:SFR) | A$8.30 | A$15.20 | 45.4% |
Here's a peek at a few of the choices from the screener.
Ansell
Overview: Ansell Limited, with a market cap of A$4.35 billion, designs, sources, develops, manufactures, distributes, and sells hand and body protection solutions across the Asia Pacific, Europe, the Middle East, Africa, Latin America, the Caribbean and North America.
Operations: The company's revenue segments include Healthcare at $834.20 million and Industrial (Including Specialty Markets) at $785.10 million.
Estimated Discount To Fair Value: 47.8%
Ansell (A$30.04) is trading at 47.8% below its estimated fair value of A$57.55, suggesting significant undervaluation based on discounted cash flow analysis. Despite a forecasted annual earnings growth of 22.49%, faster than the Australian market, recent financial results show a decline in net income to US$76.5 million from US$148.3 million last year and reduced profit margins from 9% to 4.7%. Shareholders have faced dilution over the past year, impacting overall returns.
Judo Capital Holdings
Overview: Judo Capital Holdings Limited (ASX:JDO) provides a range of banking products and services tailored for small and medium businesses in Australia, with a market cap of A$1.85 billion.