It’s already March 2025 and I think this is a good time to look at buying undervalued ASX shares amid recent share market movements.
The US administration is adding tariffs onto goods from Mexico and Canada. This raises the prospect of a longer-term trade war which may impact company profits and overall confidence. Lower share prices could be appealing.
It’s tricky to say how this will develop in the longer-term, but I’m seeing opportunities after the decline. Here are two of them.
Brickworks Ltd (ASX: BKW)
Brickworks looks like a top buy to me following an RBA interest rate cut in February 2025. It’s probably premature to expect multiple rate cuts in the coming months, but the outlook has improved for construction, in my opinion.
The Sydney and Melbourne property markets have been given a boost. Despite that, the Brickworks share price is down more than 10% from its 52-week high last year.
A rate cut should also help the valuation of the industrial properties that it owns indirectly through a joint venture trust. Some of the main tenants are Amazon, Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW). I’m expecting solid growth of rental income thanks to rental increases and additional property completions.
I also believe that its large holding of ASX share Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), an investment business, will help provide stability, long-term asset growth and rising dividends for Brickworks.
Siteminder Ltd (ASX: SDR)
Siteminder says its Siteminder software is the world’s leading hotel distribution and revenue platform. Little Hotelier is an all-in-one hotel management software that “makes the lives of small accomodation providers easier”. It generates/processes 125 million reservations worth over A$80 billion in revenue for its hotel customers each year.
The Siteminder share price has plunged more than 20% since reporting in late February 2025, making it look more appealing to me.
The ASX share reported total revenue only increased by 13.9% to $104.5 million (but accelerated in the second quarter).
The subscription revenue rose 9.9% to $66.3 million with growth impacted by short-term new customer incentives as part of Siteminder’s strategy to pursue larger hotel properties with a higher room count and transaction value.
However, transaction revenue (including Smart Platform contributions) grew 21.4% to $38.1 million.
The company’s underlying gross profit margin increased by 118 basis points (1.18%) from the second half of FY24 to 66.9%, with both the subscription and transaction gross profit margin increasing.
Pleasingly, the business is making profit at the underlying EBITDA level (of $5.3 million in HY25), improving by $6.5 million compared to HY25. Reported EBITDA was $0.3 million, despite $4.9 million of restructuring costs.
Its underlying free cash flow improving by almost $8 million to a loss of $0.6 million.
Siteminder’s profitability is improving and revenue continues to climb at more than 10% per year. I think there’s good prospects of rising profit for this business in the coming years, which may now be undervalued.
