Yahoo Finance Seatrium And 2 Other Stocks On SGX That Might Be Trading Below Intrinsic Value
The Singapore stock market has been navigating a landscape shaped by new legislative measures aimed at curbing financial scams, reflecting the government's proactive stance on safeguarding investor interests. Amid these developments, identifying undervalued stocks becomes crucial for investors seeking opportunities that may offer significant long-term value.
Top 5 Undervalued Stocks Based On Cash Flows In Singapore
Name | Current Price | Fair Value (Est) | Discount (Est) |
Singapore Technologies Engineering (SGX:S63) | SGD4.47 | SGD7.33 | 39% |
LHN (SGX:41O) | SGD0.335 | SGD0.41 | 18.7% |
Digital Core REIT (SGX:DCRU) | US$0.60 | US$0.83 | 27.3% |
Frasers Logistics & Commercial Trust (SGX:BUOU) | SGD1.11 | SGD2.16 | 48.6% |
Nanofilm Technologies International (SGX:MZH) | SGD0.77 | SGD1.42 | 45.6% |
Seatrium (SGX:5E2) | SGD1.55 | SGD2.88 | 46.1% |
Let's explore several standout options from the results in the screener.
Seatrium
Overview: Seatrium Limited offers engineering solutions for the offshore, marine, and energy industries with a market cap of SGD5.27 billion.
Operations: Revenue segments include Ship Chartering at SGD24.71 million and Rigs & Floaters, Repairs & Upgrades, Offshore Platforms and Specialised Shipbuilding at SGD8.39 billion.
Estimated Discount To Fair Value: 46.1%
Seatrium Limited's recent earnings report shows a significant turnaround with net income of S$35.97 million for H1 2024, compared to a net loss last year. The company successfully delivered its fourth jackup rig ahead of schedule and completed a share buyback program worth S$9.6 million. Despite ongoing regulatory investigations, Seatrium remains highly undervalued based on discounted cash flows, trading at 46% below estimated fair value and with expected revenue growth outpacing the market.
Frasers Logistics & Commercial Trust
Overview: Frasers Logistics & Commercial Trust (SGX:BUOU) is a Singapore-listed real estate investment trust with a portfolio of 107 industrial and commercial properties valued at approximately S$6.4 billion, diversified across Australia, Germany, Singapore, the United Kingdom and the Netherlands, with a market cap of S$4.17 billion.
Operations: FLCT generates revenue from its portfolio of 107 industrial and commercial properties, valued at approximately S$6.4 billion, located in Australia, Germany, Singapore, the United Kingdom and the Netherlands.
Estimated Discount To Fair Value: 48.6%
Frasers Logistics & Commercial Trust is trading at S$1.11, significantly below its estimated fair value of S$2.16, making it highly undervalued based on discounted cash flows. The trust's revenue is forecast to grow 6.3% annually, outpacing the broader Singapore market's 3.7%. Although it has an unstable dividend track record and debt not well covered by operating cash flow, earnings are expected to grow 39.43% per year and become profitable within three years.
Nanofilm Technologies International
Overview: Nanofilm Technologies International Limited, with a market cap of SGD501.33 million, offers nanotechnology solutions across Singapore, China, Japan, and Vietnam.
Operations: The company's revenue segments include Sydrogen (SGD1.40 million), Nanofabrication (SGD18.37 million), Advanced Materials (SGD153.32 million), and Industrial Equipment (SGD28.71 million).
Estimated Discount To Fair Value: 45.6%
Nanofilm Technologies International appears undervalued based on discounted cash flows, trading at S$0.77 against an estimated fair value of S$1.42. Despite a net loss of S$3.74 million for the half year ended June 30, 2024, revenues increased to S$82.65 million from last year's S$73.15 million. The company forecasts higher second-half earnings and anticipates full-year earnings comparable to 2023's S$3 million, though below the previous year's second-half performance.
Key Takeaways
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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 SGX:5E2 SGX:BUOU and SGX:MZH.
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