These stocks are sought after by value investors since they offer growth potential in the long term.
5 ASX Undervalued Stocks to Watch
NTAW Holdings Limited (ASX: NTD)
Kogan.com Limited (ASX: KGN)
Syntara Limited (ASX: SNT)
Carnarvon Energy Limited (ASX: CVN)
G8 Education Limited (ASX: GEM)
NTAW Holdings Limited (ASX: NTD)
reported FY2025 revenue of $522.6 million which was more or less flat after a very tough last year. The gross margin showed improvement in second half of 2025 reaching 29.4% and net debt came down sharply by 37%. They managed to cut costs and bring down inventory by around $30 million and push operating EBITDA up to $19.7 million in 2H25. Valuation of the company still looks undervalued with P/B at 0.69 compared to industry 1.39, EV/Sales at 0.34 compared to 1.69 and P/CF at 2.13 against that of the industry at 8.24. These numbers along with better operations and stronger supplier ties put NTD in a good spot.
Kogan.com Limited (ASX: KGN)
posted revenue of around $488.1 million in FY2025 which is 6% higher than last year. Gross profit went up by 13% to $189.9 million and adjusted EBITDA came in at $36.8 million even after a goodwill impairment of $46.3 million from Mighty Ape. Kogan has now grown its customer base to 3.5 million and its Marketplace together with the Kogan FIRST loyalty program are bringing in more recurring high margin income. Looking at valuation, the company trades at an EV/Sales of 0.69 compared to industry 0.68 and a P/CF of 10.71 against industry 11.86 which put them in a good position.
Syntara Limited (ASX: SNT)
is a biotech company in clinical stage working on fibrosis and cancer treatments with its main drug candidate amsulostat. This drug got FDA Fast Track Designation for myelofibrosis which is a big milestone for the company. The Phase 2 interim results looked strong with 73% of patients showing more than 50% reduction in symptoms and 44% showing a clear reduction in spleen size. For the year FY2025 it posted a net loss of $7.9 million but it ended the year with $15.1 million in cash reserves supported from placements and R&D incentives. The valuation also looks interesting with EV/Sales at 4.28 compared to industry average 21.77 and P/B at 2.55 compared to 4.30 to that of the industry.
Carnarvon Energy Limited (ASX: CVN)
made a comeback in FY25 with a NPAT of $3.6 million compared to a $0.7 million loss in FY24. Total EPS also improved to 0.20 cents and had an operating cash flow of $6 million compared to $1.26 million of the last year. The turnaround was helped by tight cost control. The balance sheet is still strong with $186 million cash. Carnarvon also put in around $89 million in Strike Energy which gives it more exposure to the Australian gas sector. The valuation looks attractive as P/B is at 0.66 while industry average is 1.34 which shows there is still good asset value most of which is liquid.
G8 Education Limited (ASX: GEM)
reported revenue of $465.4 million for H1 FY25 which is down 3.7% compared to last year but at the same time reported NPAT went up by 12% to $22.5 million and operating NPAT touched $25.5 million. Cost control is clear to see as employment expenses dropped by 5.4% and other savings helped margins. The company has been active in giving dividends and also repurchasing shares. Valuation looks attractive with P/E ratio at 8.89 compared to industry 9.65, EV/EBITDA is 5.64 vs 6.09 and P/B is 0.72 vs 1.36 which shows the value supported by assets.
(Source: Company Announcements)
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