As the ASX200 index shows resilience by closing up 0.66% at 8,402 points, investors are keenly observing market movements amid global trade uncertainties linked to Donald Trump's tariff decisions. With sectors like Financials and Materials leading gains, identifying undervalued stocks becomes crucial for those looking to capitalize on potential market inefficiencies. In this context, Codan and two other ASX stocks may present opportunities for investors seeking value in a fluctuating economic landscape.

Top 10 Undervalued Stocks Based On Cash Flows In Australia

Click here to see the full list of 43 stocks from our Undervalued ASX Stocks Based On Cash Flows screener.

Underneath we present a selection of stocks filtered out by our screen.

Codan

Overview: Codan Limited develops technology solutions for organizations such as the United Nations, security and military groups, government departments, individuals, and small-scale miners, with a market cap of A$2.83 billion.

Operations: The company's revenue is derived from two main segments: Communications, which contributed A$326.91 million, and Metal Detection, which generated A$219.85 million.

Estimated Discount To Fair Value: 41.8%

Codan is trading at A$15.55, significantly below its estimated fair value of A$26.7, suggesting it may be undervalued based on cash flows. The company's earnings are projected to grow at 17.42% annually, outpacing the Australian market's 12.7% forecasted growth rate. Revenue is expected to increase by 10.6% per year, also above market expectations but not exceeding the high-growth benchmark of 20%. Codan's strong return on equity forecast further supports its valuation appeal.

• According our earnings growth report, there's an indication that Codan might be ready to expand.
• Delve into the full analysis health report here for a deeper understanding of Codan.

Ingenia Communities Group

Overview: Ingenia Communities Group (ASX:INA) is a prominent operator, owner, and developer of residential communities and holiday accommodations with a market cap of A$2.18 billion.

Operations: Ingenia Communities Group generates revenue from several segments, including Tourism - Ingenia Holidays (A$134.84 million), Residential - Lifestyle Development (A$205.81 million), Residential - Lifestyle Rental (A$86.50 million), Fuel, Food & Beverage (A$19.26 million), and Residential - Ingenia Gardens (A$23.67 million).

Estimated Discount To Fair Value: 43.2%

Ingenia Communities Group, trading at A$5.32, is considerably below its estimated fair value of A$9.37, highlighting potential undervaluation based on cash flows. Revenue growth is forecasted at 10.4% annually, surpassing the Australian market's 6% rate but not reaching high-growth thresholds. Despite a low projected return on equity of 8.1%, earnings are expected to grow significantly by over 26% annually, supported by recent raised earnings guidance for fiscal year 2025.

• The analysis detailed in our Ingenia Communities Group growth report hints at robust future financial performance.
• Click here and access our complete balance sheet health report to understand the dynamics of Ingenia Communities Group.

Medibank Private

Overview: Medibank Private Limited operates as a provider of private health insurance and health services in Australia, with a market cap of A$10.52 billion.

Operations: The company's revenue is primarily derived from Health Insurance, contributing A$7.90 billion, and Medibank Health services, which add A$360.10 million.

Estimated Discount To Fair Value: 39.6%

Medibank Private is trading at A$3.82, significantly below its estimated fair value of A$6.33, indicating potential undervaluation based on cash flows. While revenue growth is projected at 4.8% annually, slower than the market average of 6%, earnings are expected to grow substantially by 28.2% per year, outpacing the market's 12.7% growth rate. However, its dividend yield of 4.35% isn't well covered by earnings, posing a sustainability concern.

• Insights from our recent growth report point to a promising forecast for Medibank Private's business outlook.
• Take a closer look at Medibank Private's balance sheet health here in our report.

Next Steps

• Explore the 43 names from our Undervalued ASX Stocks Based On Cash Flows screener here.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Curious About Other Options?

• 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:CDA ASX:INA and ASX:MPL.

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