3 ASX Stocks Trading At Up To 46.3% Below Intrinsic Value
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Over the last 7 days, the Australian market has risen 1.1%, and over the past 12 months, it is up 11%, with earnings forecasted to grow by 13% annually. In this favorable environment, identifying undervalued stocks can present significant opportunities for investors looking to capitalize on potential growth.
Top 10 Undervalued Stocks Based On Cash Flows In Australia
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Regal Partners (ASX:RPL) | A$3.39 | A$6.77 | 49.9% |
| Hansen Technologies (ASX:HSN) | A$4.21 | A$8.20 | 48.7% |
| IPH (ASX:IPH) | A$6.18 | A$11.54 | 46.4% |
| Ansell (ASX:ANN) | A$29.55 | A$56.92 | 48.1% |
| Shine Justice (ASX:SHJ) | A$0.71 | A$1.34 | 47% |
| HMC Capital (ASX:HMC) | A$8.31 | A$15.47 | 46.3% |
| Millennium Services Group (ASX:MIL) | A$1.145 | A$2.24 | 48.9% |
| Little Green Pharma (ASX:LGP) | A$0.091 | A$0.17 | 46.3% |
| Airtasker (ASX:ART) | A$0.265 | A$0.52 | 49.4% |
| Superloop (ASX:SLC) | A$1.71 | A$3.31 | 48.4% |
Underneath we present a selection of stocks filtered out by our screen.
HMC Capital
Overview: HMC Capital Limited, with a market cap of A$3.14 billion, owns and manages real estate-focused funds in Australia through its subsidiaries.
Operations: HMC Capital generates revenue primarily from real estate at A$77.60 million, supplemented by private equity at A$3.50 million.
Estimated Discount To Fair Value: 46.3%
HMC Capital reported earnings of A$66 million and sales of A$81.1 million for the year ended June 30, 2024, showing solid growth from the previous year. Trading at A$8.31, it is significantly undervalued compared to its estimated fair value of A$15.47. Although shareholders faced dilution recently, HMC's revenue is forecast to grow by over 20% annually, outpacing market averages and indicating strong future cash flows despite a modest return on equity forecast of 9.5%.
Infomedia
Overview: Infomedia Ltd (ASX:IFM) is a technology company that develops and supplies electronic parts catalogues, service quoting software, and e-commerce solutions for the automotive industry worldwide, with a market cap of A$657.61 million.
Operations: Revenue from publishing periodicals amounts to A$140.83 million.
Estimated Discount To Fair Value: 25.8%
Infomedia Ltd reported full-year sales of A$140.83 million, up from A$129.91 million last year, with net income rising to A$12.68 million from A$9.58 million. Trading at A$1.76, it is significantly undervalued compared to its estimated fair value of A$2.37 and shows strong cash flow potential with earnings expected to grow 28.7% annually over the next three years, outpacing the broader Australian market's growth forecast of 12.8%.