There are cheap ASX shares that I think investors should pay close attention to. Value investors could do really well with these stocks, in my view.
What counts as a cheap stock can mean a few different things. It may mean a low price/earnings (P/E) ratio it's trading at, a share price decline, or perhaps what valuation it's trading at compared to others in its sector.
With that in mind, I'm going to talk about businesses that could be described in one of the above ways.
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Centuria Capital Group (ASX: CNI)
This is a fund manager that provides a number of real estate funds for clients as well as tax-effective investment bonds. It's the manager of two of the larger real estate investment trusts (REITs), including Centuria Industrial REIT (ASX: CIP) and Centuria Office REIT (ASX: COF).
I'm confident on its potential to deliver returns, which I'll get into below. The cheap ASX share has dropped 52% from 17 September 2021.
The business could be one of the major beneficiaries of the Reserve Bank of Australia (RBA) rate cuts, in my view. Rate cuts reduce the cost of debt, which can help increase rental profits. Rate cuts could also increase the value of the properties, which could be a significant boost for the funds under management (FUM).
One of the rate cut tailwinds I'm most excited about is the possibility that clients could allocate more money to the real estate manager as they search for stronger returns than weakening returns from term deposits (and bonds).
As a bonus, Centuria is expecting to pay a distribution yield of 6% in FY25 which I'm expecting the cheap ASX share to grow in the next few years.
Siteminder Ltd (ASX: SDR)
Siteminder is a global software leader that serves the hotel industry. It helps hoteliers expand and optimise their distribution around the world to maximise revenue.
The business says its operating model is based on generating resilient revenue, underpinned by software as a service (SaaS) subscriptions and a 'land and expand' strategy.
It boasts a truly global presence, with a multilingual platform in eight languages, spanning over 150 countries.
Siteminder helps hotels through a variety of distribution channels including online travel agencies (OTAs), global distribution systems, wholesalers (such as bed banks), direct distribution and Metasearch.
It's a very valuable service for the global hotel industry, with 47,200 subscription properties, representing more than 2.3 million rooms. It boasts an annual gross booking value of more than $80 billion across over 125 million reservations.
I think it looks like a cheap ASX share because of its recent decline and its prospects for further revenue growth. It has dropped 27% since 25 February 2025.
The business says that average revenue per user (ARPU) growth has contributed more than 50% of revenue growth over the last three years. Management says the ARPU growth is sustainable because it's primarily achieved through upselling rather than increasing prices.
As a software business, I think the business is primed to deliver rising profit margins as its revenue rises, which I think bodes well for the company to deliver strong returns.
