Yahoo Finance 3 UK Stocks Possibly Trading Up To 44.8% Below Intrinsic Value
The United Kingdom's FTSE 100 index has recently faced downward pressure, largely due to weak trade data from China and falling commodity prices affecting major companies. Despite these challenges, there are opportunities for discerning investors to find undervalued stocks that may be trading significantly below their intrinsic value.
Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom
Name | Current Price | Fair Value (Est) | Discount (Est) |
Gaming Realms (AIM:GMR) | £0.395 | £0.77 | 48.9% |
EnSilica (AIM:ENSI) | £0.42 | £0.82 | 48.8% |
Tracsis (AIM:TRCS) | £6.10 | £11.48 | 46.9% |
NCC Group (LSE:NCC) | £1.474 | £2.73 | 45.9% |
AstraZeneca (LSE:AZN) | £124.08 | £240.89 | 48.5% |
Sage Group (LSE:SGE) | £10.18 | £18.62 | 45.3% |
Mercia Asset Management (AIM:MERC) | £0.342 | £0.68 | 49.5% |
Foxtons Group (LSE:FOXT) | £0.632 | £1.16 | 45.6% |
BATM Advanced Communications (LSE:BVC) | £0.1965 | £0.36 | 45.8% |
Restore (AIM:RST) | £2.60 | £4.76 | 45.3% |
Here's a peek at a few of the choices from the screener.
accesso Technology Group
Overview: Accesso Technology Group plc develops technology solutions for the attractions and leisure industry across multiple regions worldwide, with a market cap of £278.67 million.
Operations: The company's revenue segments include Ticketing at $104.02 million and Guest Experience at $45.49 million.
Estimated Discount To Fair Value: 44.8%
Accesso Technology Group is trading at £6.86, significantly below its estimated fair value of £12.44, indicating it may be undervalued based on cash flows. The company's earnings are forecast to grow at 25% per year, outpacing the UK market's 13.5%, while revenue growth is expected to be 7.7% annually, higher than the market's 3.6%. However, return on equity is projected to remain low at 6.4% in three years.
Young's Brewery
Overview: Young & Co.'s Brewery, P.L.C. operates and manages pubs and hotels in the United Kingdom, with a market cap of £538.28 million.
Operations: The company's revenue segments consist of £388.20 million from Managed Houses and £0.60 million from All Other Segments.
Estimated Discount To Fair Value: 13.1%
Young & Co.'s Brewery, P.L.C. is trading at £9.74, below its estimated fair value of £11.21, suggesting it could be undervalued based on cash flows. Despite a drop in net income to £11.1 million from £29.7 million last year and lower profit margins (2.9% vs 8.1%), earnings are forecast to grow significantly at 35% per year over the next three years, outpacing the UK market's growth rate of 13.5%.
Rank Group
Overview: The Rank Group Plc, with a market cap of £323.22 million, provides gaming services in Great Britain, Spain, and India through its subsidiaries.
Operations: The company's revenue segments comprise Digital (£210.50 million), Mecca Venues (£136.50 million), Enracha Venues (£38.20 million), and Grosvenor Venues (£320.40 million).
Estimated Discount To Fair Value: 18%
Rank Group is trading at £0.69, below its estimated fair value of £0.84, indicating it could be undervalued based on cash flows. The company has recently become profitable and earnings are forecast to grow significantly at 33.2% per year over the next three years, outpacing the UK market's growth rate of 13.5%. However, revenue growth is expected to be modest at 6.8% per year and Return on Equity is projected to remain low at 9.3%.
Make It Happen
Delve into our full catalog of 48 Undervalued UK Stocks Based On Cash Flows here.
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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 AIM:ACSO AIM:YNGA and LSE:RNK.
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