4 min read
As the ASX 200 hovers just above the 9,000-point mark, traders are cautiously assessing their next moves amid global economic events and domestic earnings reports. In this environment of uncertainty and potential profit-taking, identifying undervalued stocks can be a strategic approach for investors looking to capitalize on market inefficiencies.
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Reckon (ASX:RKN) | A$0.605 | A$1.19 | 49.1% |
| ReadyTech Holdings (ASX:RDY) | A$2.76 | A$5.07 | 45.6% |
| PointsBet Holdings (ASX:PBH) | A$1.255 | A$2.13 | 41% |
| Hillgrove Resources (ASX:HGO) | A$0.037 | A$0.073 | 49.4% |
| Fenix Resources (ASX:FEX) | A$0.305 | A$0.51 | 39.8% |
| Elders (ASX:ELD) | A$7.57 | A$14.04 | 46.1% |
| Credit Clear (ASX:CCR) | A$0.24 | A$0.40 | 40.4% |
| Collins Foods (ASX:CKF) | A$9.38 | A$16.09 | 41.7% |
| Austal (ASX:ASB) | A$6.81 | A$13.24 | 48.6% |
| Advanced Braking Technology (ASX:ABV) | A$0.10 | A$0.16 | 38.5% |
Let's dive into some prime choices out of the screener.
Overview: Elders Limited is an Australian company that offers agricultural products and services to rural and regional customers, with a market capitalization of A$1.45 billion.
Operations: Elders generates revenue through its Branch Network (A$2.70 billion), Wholesale Products (A$362.96 million), and Feed and Processing Services (A$142.30 million).
Estimated Discount To Fair Value: 46.1%
Elders Limited's recent earnings report shows a strong performance with net income rising to A$33.62 million, up from A$11.59 million the previous year. The stock is currently trading at A$7.57, significantly below its estimated fair value of A$14.04, indicating it may be undervalued based on cash flows. Despite past shareholder dilution and a modest forecasted return on equity of 10.8%, Elders' revenue and earnings growth projections outpace the broader Australian market expectations.
Overview: Energy One Limited offers software products, outsourced operations, and advisory services to wholesale energy, environmental, and carbon trading markets in Australasia and Europe, with a market cap of A$441.76 million.
Operations: The company's revenue primarily comes from the Energy Software Industry segment, amounting to A$61.12 million.
Estimated Discount To Fair Value: 17.5%
Energy One Limited's recent earnings report highlights robust financial performance, with net income rising to A$5.89 million from A$1.44 million the previous year. The stock trades at A$14.10, 17.5% below its estimated fair value of A$17.09, suggesting it is undervalued based on cash flows despite not being significantly below fair value criteria. Earnings are forecasted to grow significantly faster than the market, although revenue growth is expected to be more moderate at 14.6% annually.
