Fevertree Drinks And 2 More UK Stocks That May Be Trading Below Estimated Value
In This Article:
The United Kingdom's FTSE 100 index has recently faced downward pressure, influenced by weak trade data from China and a global economic slowdown. Despite these challenges, opportunities exist for investors to identify stocks that may be trading below their estimated value. In this article, we will explore Fevertree Drinks and two other UK stocks that could be undervalued in the current market environment.
Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Gaming Realms (AIM:GMR) | ￡0.40 | ￡0.76 | 47.1% |
| Topps Tiles (LSE:TPT) | ￡0.45 | ￡0.88 | 49% |
| GlobalData (AIM:DATA) | ￡2.07 | ￡3.72 | 44.4% |
| Tracsis (AIM:TRCS) | ￡5.58 | ￡10.02 | 44.3% |
| Ferrexpo (LSE:FXPO) | ￡0.48 | ￡0.95 | 49.5% |
| Informa (LSE:INF) | ￡8.398 | ￡16.24 | 48.3% |
| Redcentric (AIM:RCN) | ￡1.27 | ￡2.43 | 47.6% |
| SysGroup (AIM:SYS) | ￡0.34 | ￡0.65 | 48% |
| Foxtons Group (LSE:FOXT) | ￡0.624 | ￡1.18 | 47.2% |
| Gulf Keystone Petroleum (LSE:GKP) | ￡1.13 | ￡2.04 | 44.5% |
Here we highlight a subset of our preferred stocks from the screener.
Fevertree Drinks
Overview: Fevertree Drinks PLC, with a market cap of ￡953.74 million, develops and sells premium mixer drinks in the United Kingdom, the United States, Europe, and internationally.
Operations: The company generates revenue of ￡361.70 million from its non-alcoholic beverages segment.
Estimated Discount To Fair Value: 40.7%
Fevertree Drinks appears undervalued, trading at ￡8.17 against an estimated fair value of ￡13.78. The company reported significant earnings growth, with net income rising from ￡1.1 million to ￡7.6 million year-over-year for the first half of 2024, despite a slight dip in sales to ￡172.9 million from ￡175.6 million. Earnings are forecasted to grow significantly at 30% annually over the next three years, outpacing market averages and indicating strong future cash flows.
Genel Energy
Overview: Genel Energy plc operates as an independent oil and gas exploration and production company through its subsidiaries, with a market cap of ￡210.38 million.
Operations: The company's revenue segment includes $74.40 million from production.
Estimated Discount To Fair Value: 42%
Genel Energy is trading at ￡0.76, significantly below its estimated fair value of ￡1.31, indicating it is undervalued based on cash flows. Despite reporting a net loss of US$21.9 million for H1 2024, the company showed improved production figures and reduced losses compared to the previous year. Analysts forecast revenue growth of 13.4% per year and expect Genel to become profitable within three years, suggesting strong future cash flows despite current challenges.