Yahoo Finance Best-In-Class SGX Undervalued Stocks
Stocks, such as Intraco and SBS Transit, are trading at a value below what they may actually be worth. Investors can profit from the difference by investing in these stocks as the current market prices should eventually move towards their true values. If capital gains are what you’re after in your next investment, I’ve put together a list of undervalued stocks you may be interested in, based on the latest financial data from each company.
Intraco Limited (SGX:I06)
Intraco Limited operates as an investment management company, Singapore, rest of ASEAN, and Greater China. Intraco was founded in 1968 and with the company’s market cap sitting at SGD SGD29.04M, it falls under the small-cap category.
I06’s stock is now trading at -49% beneath its actual worth of $0.55, at the market price of S$0.28, based on its expected future cash flows. This difference in price and value gives us a chance to buy low. In addition to this, I06’s PE ratio is trading at 13.98x against its its Trade Distributors peer level of, 21.35x indicating that relative to its peers, I06 can be bought at a cheaper price right now. I06 is also strong financially, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. It’s debt-to-equity ratio of 15.53% has been falling over the past couple of years signifying I06’s capability to pay down its debt. More on Intraco here.
SBS Transit Ltd (SGX:S61)
SBS Transit Ltd provides bus and rail public transport services primarily in Singapore. Formed in 1992, and now run by Juay Gan, the company provides employment to 10,239 people and with the company’s market cap sitting at SGD SGD809.78M, it falls under the small-cap category.
S61’s shares are currently hovering at around -40% lower than its intrinsic level of $4.36, at the market price of S$2.60, based on its expected future cash flows. This difference in price and value gives us a chance to buy low. In terms of relative valuation, S61’s PE ratio is trading at around 15.07x relative to its Transportation peer level of, 16.85x implying that relative to its competitors, S61’s stock can be bought at a cheaper price. S61 also has a healthy balance sheet, with near-term assets able to cover upcoming and long-term liabilities. The stock’s debt-to-equity ratio of 42.26% has been dropping for the past few years revealing S61’s capacity to pay down its debt. Dig deeper into SBS Transit here.
Stamford Tyres Corporation Limited (SGX:S29)
Stamford Tyres Corporation Limited, an investment holding company, engages in the wholesale and retail of tires and wheels in South East Asia, North Asia, Africa, and internationally. Stamford Tyres was formed in 1989 and with the company’s market cap sitting at SGD SGD78.92M, it falls under the small-cap stocks category.
S29’s shares are currently floating at around -39% under its value of $0.55, at a price tag of S$0.34, based on its expected future cash flows. This mismatch indicates a potential opportunity to buy low. Moreover, S29’s PE ratio stands at 9.14x compared to its Retail Distributors peer level of, 11.58x implying that relative to its comparable company group, we can invest in S29 at a lower price. S29 is also strong financially, with current assets covering liabilities in the near term and over the long run. Finally, its debt relative to equity is 73.15%, which has been falling for the last couple of years signalling S29’s capability to reduce its debt obligations year on year. More detail on Stamford Tyres here.
For more financially sound, undervalued companies to add to your portfolio, explore this interactive list of undervalued stocks.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
