Latest news with #ALSLimited
Yahoo
26-05-2025
- Business
- Yahoo
3 ASX Stocks Estimated To Be Trading Up To 40.9% Below Intrinsic Value
The Australian market has shown mixed performance with the ASX 200 closing up slightly at 8,361 points, driven by gains in the IT and Materials sectors, while Utilities lagged significantly. In such a fluctuating environment, identifying undervalued stocks can offer potential opportunities for investors seeking to capitalize on discrepancies between market prices and intrinsic values. Name Current Price Fair Value (Est) Discount (Est) Smart Parking (ASX:SPZ) A$0.895 A$1.74 48.5% Elders (ASX:ELD) A$6.16 A$11.39 45.9% Austal (ASX:ASB) A$5.22 A$9.12 42.8% Charter Hall Group (ASX:CHC) A$17.81 A$33.88 47.4% Polymetals Resources (ASX:POL) A$0.825 A$1.54 46.4% SciDev (ASX:SDV) A$0.365 A$0.68 46% Integral Diagnostics (ASX:IDX) A$2.41 A$4.24 43.1% Nuix (ASX:NXL) A$2.41 A$4.08 40.9% PointsBet Holdings (ASX:PBH) A$1.10 A$2.07 46.7% Superloop (ASX:SLC) A$2.61 A$4.48 41.7% Click here to see the full list of 38 stocks from our Undervalued ASX Stocks Based On Cash Flows screener. Let's explore several standout options from the results in the screener. Overview: ALS Limited offers professional technical services focused on testing, measurement, and inspection across various regions including Africa, Asia/Pacific, Europe, the Middle East, and the Americas with a market cap of A$8.55 billion. Operations: The company's revenue is derived from its Commodities segment, generating A$1.08 billion, and its Life Sciences Excluding Nuvisan segment, contributing A$1.63 billion. Estimated Discount To Fair Value: 28.9% ALS Limited is trading at A$17.64, significantly below its estimated fair value of A$24.8, making it undervalued based on discounted cash flow analysis. Despite a high level of debt and reduced profit margins (0.2% from 11.1%), ALS's earnings are projected to grow substantially at 24.9% annually, outpacing the Australian market's growth rate of 11.8%. The recent appointment of Catharine Farrow as a Non-Executive Director may enhance strategic governance and innovation efforts. Our comprehensive growth report raises the possibility that ALS is poised for substantial financial growth. Click to explore a detailed breakdown of our findings in ALS' balance sheet health report. Overview: Flight Centre Travel Group Limited offers travel retailing services for both leisure and corporate sectors across Australia, New Zealand, the Americas, Europe, the Middle East, Africa, Asia, and other international markets with a market cap of A$2.90 billion. Operations: The company's revenue is derived from two main segments: Leisure, which accounts for A$1.38 billion, and Corporate, contributing A$1.13 billion. Estimated Discount To Fair Value: 37.2% Flight Centre Travel Group is trading at A$13.18, well below its estimated fair value of A$21, highlighting its undervaluation based on discounted cash flow analysis. Despite profit margins declining from 6% to 4.1%, earnings are expected to grow significantly at 23.65% annually, surpassing the Australian market's growth rate of 11.8%. The company has initiated a share buyback program worth A$200 million, funded by cash reserves, which could enhance shareholder value further. Our expertly prepared growth report on Flight Centre Travel Group implies its future financial outlook may be stronger than recent results. Click here and access our complete balance sheet health report to understand the dynamics of Flight Centre Travel Group. Overview: Nuix Limited offers investigative analytics and intelligence software solutions across various regions, including the Asia Pacific, the Americas, Europe, the Middle East, and Africa, with a market cap of A$797.07 million. Operations: The company's revenue is primarily derived from its Software & Programming segment, which generated A$227.37 million. Estimated Discount To Fair Value: 40.9% Nuix is trading at A$2.41, significantly below its estimated fair value of A$4.08, indicating a strong undervaluation based on discounted cash flow analysis. Its earnings are forecast to grow substantially at 53.98% annually, and the company is expected to become profitable within three years, outperforming average market growth expectations. Recently added to the S&P/ASX 200 Index, Nuix's revenue growth rate of 15.3% per year surpasses the Australian market average of 5.6%. Insights from our recent growth report point to a promising forecast for Nuix's business outlook. Navigate through the intricacies of Nuix with our comprehensive financial health report here. Unlock our comprehensive list of 38 Undervalued ASX Stocks Based On Cash Flows by clicking here. Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments. Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor. 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. Companies discussed in this article include ASX:ALQ ASX:FLT and ASX:NXL. 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@
Yahoo
14-05-2025
- Business
- Yahoo
An Intrinsic Calculation For ALS Limited (ASX:ALQ) Suggests It's 25% Undervalued
ALS' estimated fair value is AU$23.75 based on 2 Stage Free Cash Flow to Equity Current share price of AU$17.81 suggests ALS is potentially 25% undervalued Analyst price target for ALQ is AU$16.60 which is 30% below our fair value estimate Does the May share price for ALS Limited (ASX:ALQ) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by taking the forecast future cash flows of the company and discounting them back to today's value. This will be done using the Discounted Cash Flow (DCF) model. Models like these may appear beyond the comprehension of a lay person, but they're fairly easy to follow. We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (A$, Millions) AU$225.9m AU$317.6m AU$386.0m AU$437.6m AU$482.0m AU$520.3m AU$553.5m AU$582.8m AU$609.1m AU$633.4m Growth Rate Estimate Source Analyst x2 Analyst x3 Analyst x3 Est @ 13.35% Est @ 10.17% Est @ 7.94% Est @ 6.38% Est @ 5.29% Est @ 4.52% Est @ 3.99% Present Value (A$, Millions) Discounted @ 6.8% AU$211 AU$278 AU$317 AU$336 AU$347 AU$351 AU$349 AU$344 AU$337 AU$328 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = AU$3.2b The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.7%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 6.8%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = AU$633m× (1 + 2.7%) ÷ (6.8%– 2.7%) = AU$16b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= AU$16b÷ ( 1 + 6.8%)10= AU$8.3b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is AU$12b. The last step is to then divide the equity value by the number of shares outstanding. Relative to the current share price of AU$17.8, the company appears a touch undervalued at a 25% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at ALS as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 6.8%, which is based on a levered beta of 0.937. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. View our latest analysis for ALS Strength Debt is well covered by earnings and cashflows. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Professional Services market. Opportunity Annual earnings are forecast to grow faster than the Australian market. Trading below our estimate of fair value by more than 20%. Threat Dividends are not covered by earnings. Revenue is forecast to grow slower than 20% per year. Valuation is only one side of the coin in terms of building your investment thesis, and it is only one of many factors that you need to assess for a company. DCF models are not the be-all and end-all of investment valuation. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. Can we work out why the company is trading at a discount to intrinsic value? For ALS, there are three fundamental factors you should assess: Risks: As an example, we've found 3 warning signs for ALS that you need to consider before investing here. Future Earnings: How does ALQ's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the ASX every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. Sign in to access your portfolio
Sky News AU
28-04-2025
- Business
- Sky News AU
ASX top performer claims US tariffs have no material impact on business costs
Testing and Inspection company ALS Limited claims US President Donald Trump's tariffs will have no immediate or material impact on business and input costs. This comes as the ASX briefly soared above the 8,000-point mark today before closing at 7,997.10. ALS Ltd rose 3.87 per cent.
Yahoo
13-04-2025
- Business
- Yahoo
What Is ALS Limited's (ASX:ALQ) Share Price Doing?
ALS Limited (ASX:ALQ), is not the largest company out there, but it saw significant share price movement during recent months on the ASX, rising to highs of AU$16.94 and falling to the lows of AU$14.38. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether ALS' current trading price of AU$14.88 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at ALS's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Great news for investors – ALS is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is A$23.40, but it is currently trading at AU$14.88 on the share market, meaning that there is still an opportunity to buy now. Another thing to keep in mind is that ALS's share price may be quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it's there, it may be hard to fall back down into an attractive buying range again. See our latest analysis for ALS Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. ALS' earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value. Are you a shareholder? Since ALQ is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation. Are you a potential investor? If you've been keeping an eye on ALQ for a while, now might be the time to enter the stock. Its prosperous future outlook isn't fully reflected in the current share price yet, which means it's not too late to buy ALQ. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Every company has risks, and we've spotted 3 warning signs for ALS you should know about. If you are no longer interested in ALS, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. Sign in to access your portfolio
Yahoo
13-04-2025
- Business
- Yahoo
What Is ALS Limited's (ASX:ALQ) Share Price Doing?
ALS Limited (ASX:ALQ), is not the largest company out there, but it saw significant share price movement during recent months on the ASX, rising to highs of AU$16.94 and falling to the lows of AU$14.38. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether ALS' current trading price of AU$14.88 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at ALS's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Great news for investors – ALS is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is A$23.40, but it is currently trading at AU$14.88 on the share market, meaning that there is still an opportunity to buy now. Another thing to keep in mind is that ALS's share price may be quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it's there, it may be hard to fall back down into an attractive buying range again. See our latest analysis for ALS Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. ALS' earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value. Are you a shareholder? Since ALQ is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation. Are you a potential investor? If you've been keeping an eye on ALQ for a while, now might be the time to enter the stock. Its prosperous future outlook isn't fully reflected in the current share price yet, which means it's not too late to buy ALQ. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Every company has risks, and we've spotted 3 warning signs for ALS you should know about. If you are no longer interested in ALS, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. Sign in to access your portfolio
