Three Undervalued Stocks ASX

Richard Hemming

What are the most undervalued stocks ASX right now?

Under the Radar Reports team has come up with three of the most undervalued stocks right now trading on the ASX: Austal (ASB),  Ingenia Communities (INA) and Tassal (TGR)

Undervalued stocks ASX: Austal (ASB)

The ship builder essentially has the gold ticket for the pandemic and is certainly an undervalued stock that ASX investors should learn about. This undervalued stock ASX receives large cheques from the US and Australian governments for an essential service.

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The undervalued stock ASX has bounced back after it disappointed in a four way competition for the US guided missile frigate program. Subsequently its resilience has been on full display, however. Since that disappointment earlier this year,  this undervalued stock upgraded FY20 earnings and then announced a US$50m injection from the US Department of Defense into its Alabama plant. 


Undervalued stocks ASX: Ingenia Communities (INA)

Under the Radar Report has been covering this undervalued property trust for seven and a half years. The undervalued stock ASX has impressed because of its focus on the growing ageing demographic, operating aged care communities, as well as providing manufactured accommodation, which produces an impressive double digit return on capital. Because of this undervalued stock, you don’t have to be rich to afford a comfortable retirement!

Since we kicked off our coverage on this undervalued stock it has been increasing its distributions, but it has also been raising even more capital. A property trust can only grow if it has money to invest. As a result of this undervalued stock’s innovative capital light model, Ingenia’s return on that capital has exceeded its costs and its shares have steadily risen. Fast forward to today and a company whose market cap was a couple of hundred million is now $1.4bn and it’s a member of the S&P/ASX200 property trust index.

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Although this undervalued stock ASX has a slender yield, it was one of the few in its sector to raise money during the COVID-19 crisis at a premium to its net tangible assets. Following its latest $175m equity capital raising at $3.50 a share the trust is back on the acquisition bandwagon. 


Undervalued stocks ASX: Tassal (TGR)

We admit, we almost lost our appetite on the news that the humble salmon may have been responsible for a fresh outbreak of coronavirus in Beijing and China’s subsequent indication of restrictions on the pink fish. We got hungry more recently when China agreed with global experts that its unlikely food trade was responsible and is no longer going to impose restrictions.
The fact is that this undervalued stock ASX Tassal doesn’t export much salmon into China. The Tasmanian company’s trade is mostly domestic. The excitement in the undervalued stock ASX is the growth of its prawn business, which has escaped any sort of international approbrium. 
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About the Author

Richard Hemming

Richard Hemming ( is an independent analyst who edits, which provides investment opportunities in Small Caps that you won’t get anywhere else.

Under the Radar Report is licensed to give general financial advice only (AFSL: 409518). The author does not own shares in any of the stocks mentioned.

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