Yahoo Finance 3 UK Stocks Trading At Up To 49.3% Below Intrinsic Value
The United Kingdom's FTSE 100 index recently faced setbacks due to weak trade data from China, highlighting the interconnected nature of global economies. Despite these challenges, there are still opportunities to find undervalued stocks that could offer significant potential for investors.
Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom
Name | Current Price | Fair Value (Est) | Discount (Est) |
Liontrust Asset Management (LSE:LIO) | £6.26 | £12.34 | 49.3% |
Gaming Realms (AIM:GMR) | £0.40 | £0.77 | 48.1% |
Tracsis (AIM:TRCS) | £6.00 | £11.42 | 47.5% |
GlobalData (AIM:DATA) | £2.215 | £4.12 | 46.2% |
C&C Group (LSE:CCR) | £1.518 | £2.90 | 47.7% |
Mercia Asset Management (AIM:MERC) | £0.345 | £0.68 | 49.1% |
Foxtons Group (LSE:FOXT) | £0.65 | £1.22 | 46.9% |
Tortilla Mexican Grill (AIM:MEX) | £0.525 | £1.01 | 47.9% |
SysGroup (AIM:SYS) | £0.34 | £0.66 | 48.8% |
Nexxen International (AIM:NEXN) | £2.745 | £5.34 | 48.6% |
Underneath we present a selection of stocks filtered out by our screen.
LBG Media
Overview: LBG Media plc operates as an online media publisher in the United Kingdom, Ireland, Australia, the United States, and internationally with a market cap of £275.99 million.
Operations: LBG Media generates £67.51 million in revenue from its online media publishing industry.
Estimated Discount To Fair Value: 21%
LBG Media is trading at £1.32, which is 21% below its estimated fair value of £1.67, indicating it may be undervalued based on cash flows. Despite recent volatility, LBG's earnings are forecast to grow significantly at 43.84% per year, outpacing the UK market's 14.1%. Revenue grew by 7.5% over the past year and is expected to continue growing faster than the UK market at 11.7% per year, though profit margins have decreased from 8.6% to 0.9%.
Babcock International Group
Overview: Babcock International Group PLC, with a market cap of £2.64 billion, specializes in the design, development, manufacture, and integration of specialist systems for aerospace, defense, and security across the UK and internationally.
Operations: The company's revenue segments are comprised of £1.10 billion from Land, £1.43 billion from Marine, £1.52 billion from Nuclear, and £341.50 million from Aviation.
Estimated Discount To Fair Value: 22.8%
Babcock International Group is trading at £5.24, which is 22.8% below its estimated fair value of £6.78, suggesting it may be undervalued based on cash flows. The company reported a net income of £165.7 million for FY24, a significant turnaround from the previous year's net loss of £35 million. Earnings are forecast to grow at 15.44% per year, outpacing the UK market's 14.1%. Despite high debt levels, Babcock's return on equity is expected to reach 30.5% in three years.
Liontrust Asset Management
Overview: Liontrust Asset Management Plc is a publicly owned investment manager with a market cap of £400.06 million.
Operations: Liontrust Asset Management Plc generates its revenue primarily from its Investment Management segment, which accounts for £197.89 million.
Estimated Discount To Fair Value: 49.3%
Liontrust Asset Management is trading at £6.26, significantly below its estimated fair value of £12.34, indicating potential undervaluation based on cash flows. Despite a challenging year with a net loss of £3.49 million and declining sales, the company is forecast to become profitable within three years and achieve high return on equity (29.8%). Recent board changes and strategic hires aim to improve sentiment after substantial investor outflows totaling £1.2 billion in early 2024.
Seize The Opportunity
Unlock more gems! Our Undervalued UK Stocks Based On Cash Flows screener has unearthed 51 more companies for you to explore.Click here to unveil our expertly curated list of 54 Undervalued UK Stocks Based On Cash Flows.
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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 AIM:LBG LSE:BAB and LSE:LIO.
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