Value investors aim to generate capital gains by identifying ASX 200 (or smaller) stocks that are trading below their intrinsic value. 

By focusing on companies whose market prices do not fully reflect their underlying fundamentals, value investors seek to purchase assets at a discount and benefit as the market gradually recognises their true worth. 

This approach relies on fundamental analysis, patience, and the belief that market prices can diverge from a company’s intrinsic value in the short term.

Right now, there are two glaring examples amongst ASX 200 stocks that could have fallen far beyond fair value. 

For investors seeking to cash in on quality stocks trading at a value, here are two prime candidates to consider. 

JB Hi Fi Ltd (ASX: JBH)

This ASX 200 stock was making headlines this week when it experienced its worst single day loss on record. 

The retailer delivered record sales, higher profit and a much larger dividend, however investors ran for the hills as its share price tumbled over 12%. 

It seems investors were less concerned with the previous financial year results, and more concerned with slowing growth. 

The team at Morgans is less concerned however. 

In a comment out of the broker this week, it said it expects these headwinds to ease. 

JBH reported a broadly in-line FY26 result, with NPAT up ~3%. However, sales growth slowed in the 4Q, including turning negative in JB Hi-Fi Australia. The July trading update was below market expectations, with 3 out of 4 divisions reporting negative comparable sales growth, and tracking below 1H27 consensus. This was impacted by price increases, supplier stock shortages, weaker consumer backdrop and cycling a strong pcp. We expect some of these headwinds to ease as the year progresses, although the macro trading environment remains choppy.

The broker has a $82 price target on this ASX 200 stock, indicating a 16% upside. 

Harvey Norman Holdings Ltd (ASX: HVN)

Another ASX 200 retailer that presents a strong value play is Harvey Norman. 

It has been hit hard by several headwinds over the last 6 months, including an ASIC enquiry. 

However it may now have been oversold. 

The first attractive aspect of this ASX 200 stock is its dividend yield fetching over 6%. 

Secondly, brokers now see it as a value play with plenty of upside. 

At the time of writing, this ASX 200 stock is trading at roughly $4.60 per share. 

A recent target from Bell Potter of $6 per share indicates an upside potential of 30%. 

While our views on FY27e sees challenging conditions for retailers with a recovery weighted to 2H, on our revised estimates HVN continues to trade at a 1-year forward P/E of ~13x (as per BPe) which appears attractive.

The post Have these ASX 200 shares now fallen too far to ignore the value? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The SkyCity Entertainment Group Ltd (ASX: SKC) share price is in focus after the company reported underlying revenue of $822.7 million, nearly flat year on year, and underlying NPAT dropping to $38 million.

What did SkyCity Entertainment Group report?

• Underlying revenue: $822.7 million, down 0.3% on FY25
• Underlying EBITDA: $181.6 million, down 22.3%
• Underlying NPAT: $38 million, down 46.9%
• Reported NPAT: $18.2 million, down 37.6%
• Net debt: $591 million (net debt/EBITDA of 3.1x)
• No final dividend declared for FY26

What else do investors need to know?

SkyCity completed the sale of two Auckland properties for $74.5 million, with settlement due in September 2026. This forms part of an asset monetisation program expected to deliver up to $300 million in gross proceeds by December, with proceeds earmarked for debt reduction.

The NZICC opened in February 2026 and hosted 141 events in its first months, attracting around 100,000 visitors. A strong events pipeline is in place for FY27, with a projected 350,000 visitations.

A cost-out program is underway, expected to deliver $30 million in annual benefits in FY27 and $70 million by FY28. The program includes a restructure and operational reset, affecting predominantly New Zealand-based corporate roles.

What did SkyCity Entertainment Group management say?

Jason Walbridge, Chief Executive Officer, said:

In FY26, we implemented carded play across our New Zealand casinos, opened the NZICC, advanced our asset monetisation, exceeded our cost-out targets, continued preparing for the regulated New Zealand online gambling market, and settled in principle the outstanding major regulatory issues in Adelaide.

What’s next for SkyCity Entertainment Group?

No earnings guidance has been provided for FY27 given continuing macro uncertainty. However, the company expects $30 million in cost savings for the year ahead, partly offset by higher online costs as the New Zealand regulated online casino market opens in 2027. Capital expenditure is forecast between $80 million and $100 million, excluding potential online licence costs.

Management is focused on completing asset sales, lowering net debt, and delivering its cost-out and digital priorities. When positive cash flow returns, the company intends to reinstate dividends to shareholders.

SkyCity Entertainment Group share price snapshot

Over the past 12 months, the SkyCity Entertainment Group share price has underperformed both the S&P/ASX 200 index (ASX: XJO) and the wider travel and leisure sector, reflecting earnings pressure and regulatory challenges.

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The post SkyCity shares on watch as FY26 profit falls but cost-out strategy advances appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Universal Store Holdings Ltd (ASX: UNI) share price is in focus after the company reported a 12.9% rise in revenue to $376.1 million for FY26, with underlying NPAT up 16.3% to $40.5 million.

What did Universal Store report?

• Revenue of $376.1 million, up 12.9% from FY25
• Underlying net profit after tax (NPAT) of $40.5 million, up 16.3%
• Statutory NPAT of $18.2 million, down 21.6% due to non-cash impairments
• Gross margin of 62.5%, up 1.4 percentage points
• Underlying EBIT of $64.0 million, up 17.2%
• Final fully franked dividend of 17 cents per share (FY total dividends: 43.0 cps)

What else do investors need to know?

The group opened 13 new stores in FY26, ending the year with 123 physical locations across its Universal Store, Perfect Stranger, and THRILLS banners. Like-for-like growth was robust in Universal Store (+8.1%) and Perfect Stranger (+13.0%), though CTC (THRILLS) wholesale sales declined further, leading to $23.8 million in non-cash impairments.

Online sales rose 10.8% to $49.2 million, making up 13.1% of total revenue. Universal Store Holdings finished the year with a strong cash balance of $23.3 million and no bank debt, maintaining significant headroom on all covenants.

What’s next for Universal Store?

Universal Store plans to continue expanding its retail footprint, especially for Universal Store and Perfect Stranger, with a similar pace of store rollouts expected in FY27. The THRILLS retail and online strategy will remain a priority as the business focuses more on direct-to-customer channels.

Investments in digital, supply chain, and team capability will continue as the group aims for sustainable long-term growth. The board has also flagged upcoming changes in leadership, with George Do set to take over as CEO in November 2026.

Universal Store share price snapshot

Over the past 12 months, Universal Store shares have declined 21%, trailing the All Ordinaries Index (ASX: XAO), which has risen 1% over the same period.

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The post Universal Store FY26 results: Sales, profit up as store rollout continues appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.