ASX Stocks That May Be Trading Below Their Estimated Value In November 2024
In This Article:
FINEOS Corporation Holdings is expected to grow its revenue at a rate of 9.7% annually, outpacing the Australian market. Despite a recent net loss, the company expects to become profitable within three years. The stock is undervalued due to its significant discount to estimated fair value, with a current price of A$2.03 compared to an estimated fair value of A$3.83. (Source: Article section on FINEOS Corporation Holdings)
According to the article, some of the top undervalued stocks based on cash flows in the Australian market include Atlas Arteria (ASX:ALX), FINEOS Corporation Holdings (ASX:FCL), and Nuix Limited (ASX:NXL), with estimated discounts to fair value ranging from 13% to 48.2%. (Source: Article sections on Atlas Arteria, FINEOS Corporation Holdings, and Nuix)
Nuix Limited is a growth stock with a forecasted earnings growth of 59.6% annually over the next three years, outpacing the Australian market average. However, the company has faced shareholder dilution and has a projected low Return on Equity of 11.9% in three years. The stock is undervalued due to its discount to estimated fair value, with a current price of A$6.20 compared to an estimated fair value of A$7.13. (Source: Article section on Nuix)
The Australian market has shown resilience, with the ASX200 closing up 0.18% at 8,300 points, buoyed by strong performances in the Staples and Utilities sectors. Investors can capitalize on potential market inefficiencies by identifying stocks that may be trading below their estimated value, such as those listed in the Top 10 Undervalued Stocks Based On Cash Flows in Australia. (Source: Article introduction)
Atlas Arteria is trading at a significant discount to its estimated fair value, with a forecasted revenue growth of 19.6% per year, outpacing the Australian market's 5.7%. Additionally, the company has a new CEO, Hugh Wehby, who may positively impact the company's strategic direction in the infrastructure sector. (Source: Article section on Atlas Arteria)
The Australian market has shown resilience with the ASX200 closing up 0.18% at 8,300 points, buoyed by strong performances in the Staples and Utilities sectors. In this environment, identifying stocks that may be trading below their estimated value can provide opportunities for investors seeking to capitalize on potential market inefficiencies and sector-specific strengths.
Top 10 Undervalued Stocks Based On Cash Flows In Australia
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Mader Group (ASX:MAD) | A$6.68 | A$13.22 | 49.5% |
| Telix Pharmaceuticals (ASX:TLX) | A$22.78 | A$44.45 | 48.8% |
| MLG Oz (ASX:MLG) | A$0.57 | A$1.12 | 49.2% |
| Atlas Arteria (ASX:ALX) | A$4.89 | A$9.44 | 48.2% |
| Ingenia Communities Group (ASX:INA) | A$4.92 | A$9.33 | 47.2% |
| Vault Minerals (ASX:VAU) | A$0.325 | A$0.64 | 49.5% |
| Millennium Services Group (ASX:MIL) | A$1.145 | A$2.24 | 48.9% |
| Audinate Group (ASX:AD8) | A$8.82 | A$17.59 | 49.9% |
| Energy One (ASX:EOL) | A$5.94 | A$10.77 | 44.8% |
| FINEOS Corporation Holdings (ASX:FCL) | A$2.03 | A$3.83 | 47% |
Let's explore several standout options from the results in the screener.
Atlas Arteria
Overview: Atlas Arteria Limited owns, develops, and operates toll roads with a market capitalization of A$7.12 billion.
Operations: The company's revenue is primarily derived from its toll road operations, with contributions of A$1.70 billion from APRR, A$36.90 million from ADELAC, A$25.10 million from Warnow Tunnel, A$128.90 million from Chicago Skyway, and A$115 million from Dulles Greenway.
Estimated Discount To Fair Value: 48.2%
Atlas Arteria is trading at A$4.91, significantly below its estimated fair value of A$9.44, indicating it may be undervalued based on cash flows. Despite a forecasted revenue growth of 19.6% per year, which outpaces the Australian market's 5.7%, its dividend yield of 8.15% isn't well covered by earnings or free cash flows. Recent leadership changes with Hugh Wehby as CEO may impact strategic direction positively in the infrastructure sector.
FINEOS Corporation Holdings
Overview: FINEOS Corporation Holdings plc develops and sells enterprise claims and policy management software for the employee benefits and life, accident, and health insurance industries worldwide, with a market cap of A$656.34 million.
Operations: The company's revenue primarily stems from its software and programming segment, which generated €122.24 million.