Yahoo Finance June Top Undervalued Stocks
Noel Gifts International and Avarga are companies that are currently trading below what they’re actually 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.
Noel Gifts International Ltd (SGX:543)
Noel Gifts International Ltd provides hampers, flowers, and gifts in Singapore and Malaysia. Noel Gifts International was formed in 1975 and with the company’s market capitalisation at SGD SGD21.52M, we can put it in the small-cap stocks category.
543’s shares are currently trading at -31% under its true level of $0.3, at a price tag of S$0.21, based on my discounted cash flow model. signalling an opportunity to buy the stock at a low price. What’s even more appeal is that 543’s PE ratio stands at 11.34x relative to its index peer level of, 13.85x indicating that relative to its comparable company group, we can invest in 543 at a lower price. 543 is also robust in terms of financial health, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. 543 has zero debt on its books as well, meaning it has no long term debt obligations to worry about. Dig deeper into Noel Gifts International here.
Avarga Limited (SGX:U09)
Avarga Limited, an investment holding company, engages in manufacturing and trading paper products, and providing management services. The company was established in 1967 and with the company’s market capitalisation at SGD SGD214.78M, we can put it in the small-cap stocks category.
U09’s stock is now hovering at around -45% less than its real value of $0.45, at a price tag of S$0.24, based on its expected future cash flows. This mismatch signals an opportunity to buy U09 shares at a discount. Furthermore, U09’s PE ratio is around 11.32x against its its Forestry peer level of, 16.77x meaning that relative to its competitors, U09’s stock can be bought at a cheaper price. U09 is also strong in terms of its financial health, with current assets covering liabilities in the near term and over the long run.
Interested in Avarga? Find out more here.
SingHaiyi Group Ltd. (SGX:5H0)
SingHaiyi Group Ltd., an investment holding company, develops, owns, and manages real estate properties in Singapore, Malaysia, and the United States. SingHaiyi Group was started in 1988 and with the market cap of SGD SGD413.32M, it falls under the small-cap stocks category.
5H0’s shares are currently hovering at around -89% lower than its intrinsic level of $0.86, at the market price of S$0.096, based on my discounted cash flow model. This mismatch signals an opportunity to buy 5H0 shares at a discount. In addition to this, 5H0’s PE ratio is around 8.75x against its its Real Estate peer level of, 9.71x meaning that relative to other stocks in the industry, you can buy 5H0 for a cheaper price. 5H0 is also robust in terms of financial health, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. The stock’s debt-to-equity ratio of 30.87% has been declining over time, demonstrating 5H0’s capacity to reduce its debt obligations year on year. Continue research on SingHaiyi Group 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.
