The Australian stock market has faced significant challenges recently, with the ASX200 dropping 1.8% amid concerns over United States tariffs on imports from China and fears of a global trade war. As sectors like Health Care and Discretionary experience downturns, investors are increasingly looking for stocks that may be trading below their fair value estimates, such as Champion Iron and others, which could offer potential opportunities in these turbulent times.
|
Name |
Current Price |
Fair Value (Est) |
Discount (Est) |
|
Data#3 (ASX:DTL) |
A$6.86 |
A$12.31 |
44.3% |
|
SKS Technologies Group (ASX:SKS) |
A$2.21 |
A$3.82 |
42.2% |
|
Mader Group (ASX:MAD) |
A$6.19 |
A$11.94 |
48.1% |
|
MLG Oz (ASX:MLG) |
A$0.595 |
A$1.18 |
49.5% |
|
Atlas Arteria (ASX:ALX) |
A$4.96 |
A$9.56 |
48.1% |
|
SciDev (ASX:SDV) |
A$0.46 |
A$0.87 |
47.3% |
|
Charter Hall Group (ASX:CHC) |
A$15.50 |
A$28.75 |
46.1% |
|
ReadyTech Holdings (ASX:RDY) |
A$3.19 |
A$6.18 |
48.4% |
|
Syrah Resources (ASX:SYR) |
A$0.23 |
A$0.41 |
43.8% |
|
29Metals (ASX:29M) |
A$0.22 |
A$0.46 |
52.5% |
We’ll examine a selection from our screener results.
Overview: Champion Iron Limited is involved in the acquisition, exploration, development, and production of iron ore deposits in Canada with a market capitalization of approximately A$2.89 billion.
Operations: The company generates its revenue primarily from the production and sale of iron ore concentrate, amounting to CA$1.51 billion.
Estimated Discount To Fair Value: 44.8%
Champion Iron appears undervalued based on cash flows, trading over 20% below its estimated fair value of A$9.63. Despite recent disruptions at Bloom Lake affecting sales, the company’s strategic partnership with Nippon Steel and Sojitz for the Kamistiatusset Project could enhance long-term growth prospects. Although profit margins have declined from last year, earnings are forecast to grow significantly at 21.4% annually, outpacing the Australian market’s growth rate of 12.6%.
Overview: Gold Road Resources Limited, with a market cap of A$2.69 billion, is involved in the exploration of gold properties in Western Australia through its subsidiaries.
Operations: The company’s revenue is primarily derived from its Development and Production segment, which generated A$454.82 million.
Estimated Discount To Fair Value: 10.9%
