3 UK Stocks Estimated To Be Up To 47.5% Below Intrinsic Value
Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom
Name
Current Price
Fair Value (Est)
Discount (Est)
Vistry Group (LSE:VTY)
£6.236
£11.87
47.5%
Topps Tiles (LSE:TPT)
£0.3845
£0.71
45.5%
TBC Bank Group (LSE:TBCG)
£48.35
£95.75
49.5%
Moonpig Group (LSE:MOON)
£2.145
£4.04
46.9%
Marlowe (AIM:MRL)
£4.42
£8.37
47.2%
LSL Property Services (LSE:LSL)
£2.98
£5.87
49.2%
Gooch & Housego (AIM:GHH)
£6.04
£11.14
45.8%
Franchise Brands (AIM:FRAN)
£1.41
£2.69
47.5%
Begbies Traynor Group (AIM:BEG)
£1.22
£2.26
45.9%
AstraZeneca (LSE:AZN)
£108.02
£194.02
44.3%
Click here to see the full list of 53 stocks from our Undervalued UK Stocks Based On Cash Flows screener.
Here we highlight a subset of our preferred stocks from the screener.
Franchise Brands
Overview: Franchise Brands plc operates in franchising and related activities across the United Kingdom, Ireland, North America, and Continental Europe, with a market cap of £271.48 million.
Operations: The company's revenue is primarily derived from its segments: Azura (£0.81 million), Pirtek (£63.91 million), B2C Division (£5.75 million), Filta International (£25.60 million), and Water & Waste Services (£46.05 million).
Estimated Discount To Fair Value: 47.5%
Franchise Brands is trading at £1.41, significantly below its estimated fair value of £2.69, suggesting it is undervalued based on cash flows. Earnings are expected to grow 29.39% annually, outpacing the UK market's 14.7%. Although revenue growth at 7.4% per year is slower than desired, it still exceeds the UK market average of 3.6%. Recent earnings growth was substantial at 143.9%, highlighting strong financial performance potential.
According our earnings growth report, there's an indication that Franchise Brands might be ready to expand.
Unlock comprehensive insights into our analysis of Franchise Brands stock in this financial health report.
Victorian Plumbing Group
Overview: Victorian Plumbing Group plc is an online retailer specializing in bathroom products and accessories for both B2C and trade customers in the United Kingdom, with a market cap of £237.09 million.
Operations: Victorian Plumbing Group generates revenue through its online retail sales of bathroom products and accessories to both consumer and trade markets in the UK.
Estimated Discount To Fair Value: 39.5%
Victorian Plumbing Group is trading at £0.72, considerably below its estimated fair value of £1.2, highlighting its potential undervaluation based on cash flows. Despite a volatile share price and insider selling, earnings are forecast to grow significantly at 29.7% annually, surpassing the UK market's growth rate. However, profit margins have declined from last year and dividends remain inadequately covered by free cash flows despite a recent increase in payout to shareholders.
Insights from our recent growth report point to a promising forecast for Victorian Plumbing Group's business outlook.
Take a closer look at Victorian Plumbing Group's balance sheet health here in our report.
Wickes Group
Overview: Wickes Group plc is a UK-based retailer specializing in home improvement products and services, with a market cap of £532.73 million.
Operations: The company generates revenue of £1.54 billion from its retail operations in home improvement products and services within the UK.
Estimated Discount To Fair Value: 28.0%
Wickes Group, trading at £2.25, is undervalued compared to its fair value estimate of £3.12, reflecting a discount greater than 20% based on discounted cash flow analysis. The company forecasts robust earnings growth of 26.8% annually, outpacing the UK market's average. Despite this potential, dividends are not well-covered by earnings and recent results show declining profit margins from last year. Recent index additions signal increased visibility among investors.
In light of our recent growth report, it seems possible that Wickes Group's financial performance will exceed current levels.
Click to explore a detailed breakdown of our findings in Wickes Group's balance sheet health report.
Make It Happen
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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:FRAN AIM:VIC and LSE:WIX.
This article was originally published by Simply Wall St.
Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@simplywallst.com
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