The United Kingdom's FTSE 100 index recently experienced a downturn, closing 0.4 percent lower at 7,527.42, influenced by weak trade data from China that highlighted ongoing struggles in the global economy. Amid these challenging market conditions, identifying undervalued stocks like Energean and others can present potential opportunities for investors seeking to capitalize on discrepancies between current market prices and intrinsic values.

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

Click here to see the full list of 60 stocks from our Undervalued UK Stocks Based On Cash Flows screener.

Let's take a closer look at a couple of our picks from the screened companies.

Energean

Overview: Energean plc is involved in the exploration, production, and development of oil and gas, with a market cap of ￡1.65 billion.

Operations: Energean's revenue from oil and gas exploration and production is $1.69 billion.

Estimated Discount To Fair Value: 24.2%

Energean plc's recent operational and financial performance highlights its potential as an undervalued stock based on cash flows. The company reported record production levels, with significant year-on-year increases in group production and sales reaching US$642.41 million for H1 2024. Despite a high level of debt, Energean's earnings are forecasted to grow at 30.4% annually, outpacing the UK market average. Trading at ￡9.02, it is notably below its estimated fair value of ￡11.89, indicating substantial undervaluation based on discounted cash flow analysis.

• In light of our recent growth report, it seems possible that Energean's financial performance will exceed current levels.

• Take a closer look at Energean's balance sheet health here in our report.

PageGroup

Overview: PageGroup plc, with a market cap of ￡1.21 billion, offers recruitment consultancy and ancillary services across the UK, Europe, the Middle East, Africa, Asia Pacific, and the Americas.

Operations: The company's revenue primarily comes from recruitment services, amounting to ￡1.87 billion.

Estimated Discount To Fair Value: 25.5%

PageGroup's recent earnings report shows a decline in sales to ￡897.96 million and net income to ￡16.78 million for H1 2024, compared to the previous year. Despite lower profit margins (2.7% vs. 4.9% last year), analysts expect significant annual earnings growth of 35.38%, well above the UK market average of 14.4%. Trading at ￡3.87, PageGroup is considered highly undervalued based on discounted cash flow analysis, with an estimated fair value of ￡5.19 per share.