Simply Wall St
4 min read
The United Kingdom’s stock market has recently experienced some turbulence, with the FTSE 100 and FTSE 250 indices closing lower due to weak trade data from China, highlighting the global economic interconnections that affect domestic markets. In such a climate, identifying stocks that may be trading below their estimated value can offer potential opportunities for investors, particularly when these stocks have strong fundamentals or are positioned to benefit from eventual economic recoveries.
|
Name |
Current Price |
Fair Value (Est) |
Discount (Est) |
|
Vistry Group (LSE:VTY) |
£6.49 |
£12.20 |
46.8% |
|
SigmaRoc (AIM:SRC) |
£1.156 |
£2.29 |
49.5% |
|
Norcros (LSE:NXR) |
£2.89 |
£5.49 |
47.4% |
|
Nichols (AIM:NICL) |
£10.30 |
£18.66 |
44.8% |
|
Gooch & Housego (AIM:GHH) |
£5.56 |
£11.05 |
49.7% |
|
Fevertree Drinks (AIM:FEVR) |
£8.72 |
£15.72 |
44.5% |
|
Essentra (LSE:ESNT) |
£1.08 |
£1.98 |
45.5% |
|
Barratt Redrow (LSE:BTRW) |
£3.864 |
£7.55 |
48.8% |
|
AstraZeneca (LSE:AZN) |
£124.74 |
£239.66 |
48% |
|
Advanced Medical Solutions Group (AIM:AMS) |
£2.215 |
£4.36 |
49.2% |
Let’s dive into some prime choices out of the screener.
Overview: SigmaRoc plc, with a market cap of £1.25 billion, operates through its subsidiaries to invest in and acquire projects within the quarried materials sector.
Operations: The company’s revenue is primarily derived from the production and sale of construction material products and services, amounting to £1.02 billion.
Estimated Discount To Fair Value: 49.5%
SigmaRoc is trading at £1.16, significantly below the estimated fair value of £2.29, suggesting it may be undervalued based on cash flows. Recent earnings show a net income increase to £24.32 million from £3.25 million year-on-year, while revenue is set to grow faster than the UK market at 4.8% annually. Despite potential delays in the AMeLi project with ArcelorMittal, SigmaRoc’s financial forecasts remain unaffected in the near term.
Overview: ASA International Group PLC operates as a microfinance institution in Asia and Africa with a market cap of £194 million.
Operations: The company’s revenue is primarily derived from its operations in South Asia ($40.66 million), East Africa ($65.82 million), West Africa ($65.29 million), and South East Asia ($34.92 million).
Estimated Discount To Fair Value: 14.3%
