Yahoo Finance ASX Value Stocks Including PEXA Group And 2 Others Priced Below Intrinsic Estimates
Over the last 7 days, the Australian market has risen 2.1% and is up 11% over the last 12 months, with earnings forecast to grow by 13% annually. In this favorable environment, identifying undervalued stocks like PEXA Group and two others can present attractive 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) |
LaserBond (ASX:LBL) | A$0.725 | A$1.37 | 47.1% |
Mader Group (ASX:MAD) | A$5.37 | A$10.56 | 49.1% |
Ingenia Communities Group (ASX:INA) | A$5.31 | A$10.56 | 49.7% |
Telix Pharmaceuticals (ASX:TLX) | A$19.97 | A$39.05 | 48.9% |
Regal Partners (ASX:RPL) | A$3.41 | A$6.64 | 48.6% |
Megaport (ASX:MP1) | A$11.79 | A$21.54 | 45.3% |
Millennium Services Group (ASX:MIL) | A$1.145 | A$2.24 | 48.9% |
Airtasker (ASX:ART) | A$0.265 | A$0.52 | 49.4% |
Sandfire Resources (ASX:SFR) | A$8.79 | A$16.11 | 45.4% |
Matrix Composites & Engineering (ASX:MCE) | A$0.30 | A$0.55 | 45.1% |
Here we highlight a subset of our preferred stocks from the screener.
PEXA Group
Overview: PEXA Group Limited operates a digital property settlements platform in Australia and has a market cap of A$2.46 billion.
Operations: PEXA Group Limited generates revenue through its digital property settlements platform in Australia.
Estimated Discount To Fair Value: 26.2%
PEXA Group is trading at A$13.88, significantly below its estimated fair value of A$18.81, indicating it may be undervalued based on cash flows. The company’s revenue is forecast to grow 13.7% annually, outpacing the broader Australian market's growth rate of 5.3%. Despite a low return on equity forecast (7.8%) in three years, PEXA is expected to become profitable within the same period with earnings growth projected at 45.1% per year. Recent executive changes include CEO Glenn King's planned retirement by FY24-25 end and Georgina Lynch's appointment as an Independent Non-Executive Director effective September 2024.
Our growth report here indicates PEXA Group may be poised for an improving outlook.
Get an in-depth perspective on PEXA Group's balance sheet by reading our health report here.
Sandfire Resources
Overview: Sandfire Resources Limited is a mining company involved in the exploration, evaluation, and development of mineral tenements and projects with a market cap of A$4.02 billion.
Operations: The company's revenue segments include MATSA Copper Operations generating $581.75 million and Degrussa Copper Operations contributing $94.49 million, with a segment adjustment of $125.34 million.
Estimated Discount To Fair Value: 45.4%
Sandfire Resources is forecast to achieve profitability within the next three years, with revenue growth projected at 12.1% per year, outpacing the Australian market's average of 5.3%. The company’s upcoming Q4 2024 earnings report on July 25 could provide further insights into its cash flow health. While not growing at an exceptional rate, Sandfire's above-market revenue growth and path to profitability suggest it may be undervalued based on cash flows.
Webjet
Overview: Webjet Limited offers online travel booking services across Australia, New Zealand, the United Arab Emirates, the United Kingdom, and internationally, with a market cap of A$3.24 billion.
Operations: The company's revenue segments include Corporate at A$0.80 million, Business to Business Travel (B2B) at A$327.90 million, and Business to Consumer Travel (B2C) at A$142.80 million.
Estimated Discount To Fair Value: 27.6%
Webjet Limited is trading at A$8.28, significantly below its estimated fair value of A$11.43, indicating potential undervaluation based on cash flows. The company reported substantial earnings growth from A$14.5 million to A$72.7 million for the year ending March 31, 2024. With a planned demerger of WebBeds and Webjet B2C divisions and expected annual profit growth of over 20%, Webjet's strategic moves could unlock additional shareholder value despite low forecasted return on equity (15.8%).
The growth report we've compiled suggests that Webjet's future prospects could be on the up.
Click to explore a detailed breakdown of our findings in Webjet's balance sheet health report.
Where To Now?
Delve into our full catalog of 37 Undervalued ASX Stocks Based On Cash Flows here.
Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
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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 ASX:PXA ASX:SFR and ASX:WEB.
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