3 ASX Stocks Conceivably Trading Below Intrinsic Value By Up To 48.3%
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The market has been flat over the last week but is up 10.0% over the past year, with earnings forecast to grow by 12% annually. In this environment, identifying stocks that are trading below their intrinsic value can provide significant opportunities for investors seeking potential gains.
Top 10 Undervalued Stocks Based On Cash Flows In Australia
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Hansen Technologies (ASX:HSN) | A$4.25 | A$8.21 | 48.3% |
| IPH (ASX:IPH) | A$6.23 | A$11.55 | 46.1% |
| Ansell (ASX:ANN) | A$29.62 | A$56.66 | 47.7% |
| MLG Oz (ASX:MLG) | A$0.65 | A$1.18 | 44.8% |
| Shine Justice (ASX:SHJ) | A$0.74 | A$1.34 | 44.6% |
| HMC Capital (ASX:HMC) | A$8.34 | A$15.48 | 46.1% |
| VEEM (ASX:VEE) | A$1.74 | A$3.23 | 46.1% |
| Millennium Services Group (ASX:MIL) | A$1.145 | A$2.24 | 48.9% |
| Clover (ASX:CLV) | A$0.395 | A$0.72 | 45.3% |
| Superloop (ASX:SLC) | A$1.705 | A$3.31 | 48.6% |
We're going to check out a few of the best picks from our screener tool.
Hansen Technologies
Overview: Hansen Technologies Limited (ASX:HSN) develops, integrates, and supports billing systems software for the energy, utilities, communications, and media sectors with a market cap of A$862.97 million.
Operations: The company's revenue from billing systems software amounts to A$347.61 million.
Estimated Discount To Fair Value: 48.3%
Hansen Technologies appears undervalued based on cash flows, trading at A$4.25, significantly below its estimated fair value of A$8.21. Despite a decline in net profit margins from 13.7% to 6%, earnings are forecast to grow at 20.9% per year, outpacing the Australian market's growth rate of 12.3%. Recent financials show revenue increased from A$315.22 million to A$355.43 million, though net income fell from A$42.8 million to A$21.06 million.
Integral Diagnostics
Overview: Integral Diagnostics Limited (ASX:IDX) is a healthcare services company that provides diagnostic imaging services to medical professionals and patients in Australia and New Zealand, with a market cap of A$617.54 million.
Operations: The company generates revenue from diagnostic imaging services provided to general practitioners, medical specialists, and allied health professionals in Australia and New Zealand.
Estimated Discount To Fair Value: 12.5%
Integral Diagnostics (A$2.64) trades below its estimated fair value of A$3.02, suggesting potential undervaluation based on cash flows. The company's revenue is forecast to grow at 6.5% per year, outpacing the Australian market's 5.4%. However, recent financials show a net loss of A$60.7 million for FY2024 compared to a net income of A$25.04 million the previous year, highlighting some financial challenges despite anticipated profitability in three years and ongoing strategic mergers and acquisitions efforts.