The Singapore market has been navigating a landscape of economic uncertainty and fluctuating indices, prompting investors to seek opportunities that may be undervalued. In such conditions, identifying stocks trading below their intrinsic value can offer potential for long-term gains.

Top 5 Undervalued Stocks Based On Cash Flows In Singapore

Click here to see the full list of 5 stocks from our Undervalued SGX Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results.

Seatrium (SGX:5E2)

Overview: Seatrium Limited offers engineering solutions for the offshore, marine, and energy industries, with a market cap of SGD5.98 billion.

Operations: The company's revenue segments include Ship Chartering at SGD24.71 million and Rigs & Floaters, Repairs & Upgrades, Offshore Platforms and Specialised Shipbuilding at SGD8.39 billion.

Estimated Discount To Fair Value: 40.7%

Seatrium Limited appears significantly undervalued based on cash flows, trading at 40.7% below its estimated fair value of S$2.97 per share. Recent financials show a turnaround with net income of S$35.97 million for H1 2024, compared to a net loss last year. The company also completed a share buyback and successfully delivered a major project ahead of schedule, further demonstrating operational efficiency and strong cash flow management capabilities.

• Insights from our recent growth report point to a promising forecast for Seatrium's business outlook.
• Click to explore a detailed breakdown of our findings in Seatrium's balance sheet health report.

Digital Core REIT (SGX:DCRU)

Overview: Digital Core REIT (SGX: DCRU) is a leading pure-play data centre REIT listed in Singapore, sponsored by Digital Realty, with a market cap of $797.39 million.

Operations: The company's revenue primarily comes from its commercial REIT segment, amounting to $70.76 million.

Estimated Discount To Fair Value: 25.7%

Digital Core REIT is trading at 25.7% below its estimated fair value of US$0.83, indicating it may be undervalued based on cash flows. Despite a decline in revenue to US$48.26 million for H1 2024 from US$53.39 million last year, net income more than doubled to US$18.63 million, showcasing improved profitability. However, the dividend track record remains unstable, and shareholders experienced dilution over the past year. Analysts expect continued revenue growth and forecast profitability within three years.

• Our comprehensive growth report raises the possibility that Digital Core REIT is poised for substantial financial growth.
• Click here to discover the nuances of Digital Core REIT with our detailed financial health report.

Nanofilm Technologies International (SGX:MZH)

Overview: Nanofilm Technologies International Limited, with a market cap of SGD543.65 million, provides nanotechnology solutions across Singapore, China, Japan, and Vietnam.

Operations: Nanofilm Technologies International Limited's revenue segments consist of Sydrogen (SGD1.40 million), Nanofabrication (SGD18.37 million), Advanced Materials (SGD153.32 million), and Industrial Equipment (SGD28.71 million).

Estimated Discount To Fair Value: 41.6%

Nanofilm Technologies International is trading at 41.6% below its estimated fair value of SGD 1.43, suggesting it is undervalued based on cash flows. Despite reporting a net loss of SGD 3.74 million for H1 2024, down from a larger loss last year, the company forecasts significant annual profit growth of 54%. Revenue is expected to grow faster than the market at 16.1% per year, although profit margins have declined from last year's figures.

• Our growth report here indicates Nanofilm Technologies International may be poised for an improving outlook.
• Delve into the full analysis health report here for a deeper understanding of Nanofilm Technologies International.

Summing It All Up

• Click this link to deep-dive into the 5 companies within our Undervalued SGX Stocks Based On Cash Flows screener.
• Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

Ready For A Different Approach?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com