As global markets navigate mixed signals, with U.S. indices showing resilience despite recent slumps and European inflationary pressures influencing policy discussions, investors are keenly observing for opportunities amidst the volatility. In such a climate, identifying undervalued stocks becomes crucial as these can offer potential value when broader market conditions stabilize.
Here’s a peek at a few of the choices from the screener.
Overview: Grupo Rotoplas S.A.B. de C.V. operates in the water solutions sector by manufacturing, purchasing, selling, and installing plastic containers and accessories for water storage, conduction, and improvement across Mexico, Argentina, the United States, and internationally with a market cap of MX$7.40 billion.
Operations: The company’s revenue segments include Individual Solutions, which generated MX$11.05 billion, and Comprehensive Solutions, which contributed MX$803.32 million.
Estimated Discount To Fair Value: 27.1%
Grupo Rotoplas S.A.B. de C.V. is trading at MX$15.62, significantly below its estimated fair value of MX$21.41, indicating potential undervaluation based on cash flows. Despite a volatile share price and recent net loss of MXN 73 million in Q3 2024, the company anticipates annual earnings growth of 12.43%, outpacing the Mexican market slightly. However, its dividend coverage and interest payment coverage remain concerns amidst improved but still modest profit margins at 3.1%.
BMV:AGUA * Discounted Cash Flow as at Jan 2025
Overview: Cloudberry Clean Energy ASA is a renewable energy company with a market capitalization of NOK3.56 billion.
Operations: The company generates revenue from its various segments, including NOK60 million from Operations, NOK572 million from Production, and NOK27 million from Development.
Estimated Discount To Fair Value: 13.1%
Cloudberry Clean Energy is trading at NOK 12.34, slightly below its estimated fair value of NOK 14.2, suggesting a modest undervaluation based on cash flows. Despite reporting a net loss of NOK 19 million in Q3 2024, revenue increased to NOK 84 million from the previous year. The company forecasts annual revenue growth of 14.5%, surpassing the Norwegian market average, and expects profitability within three years despite low future return on equity projections.
OB:CLOUD Discounted Cash Flow as at Jan 2025
Overview: Systena Corporation operates in Japan, focusing on solution and framework design, IT services, business solutions, and cloud businesses, with a market cap of ¥128.68 billion.
Operations: The company’s revenue segments include ¥19.77 billion from the Solution Design Business, ¥7.46 billion from the Framework Design Business, and ¥28.61 billion from the Business Solution Business.
Estimated Discount To Fair Value: 40.3%
Systena is trading at ¥360, significantly below its estimated fair value of ¥602.91, highlighting a substantial undervaluation based on cash flows. The company forecasts annual revenue growth of 7.1% and earnings growth of 10.7%, both outpacing the Japanese market averages. Recent guidance projects net sales up to ¥90 billion and operating profit up to ¥12 billion for fiscal year ending March 2025, alongside increased dividends and share buybacks enhancing shareholder value.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include BMV:AGUA * OB:CLOUD and TSE:2317.
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