Yahoo Finance Exploring 3 German Exchange Stocks Estimated To Be Up To 44.1% Below Intrinsic Value
Amidst a backdrop of political stability and modest economic gains, Germany's DAX index has shown resilience with a 1.32% increase. This environment may present opportunities for investors to consider undervalued stocks that could be poised for growth as market conditions evolve. Identifying stocks trading below their intrinsic value can be particularly compelling in such a steady yet cautiously optimistic market climate.
Top 10 Undervalued Stocks Based On Cash Flows In Germany
Name | Current Price | Fair Value (Est) | Discount (Est) |
Stabilus (XTRA:STM) | €45.15 | €80.82 | 44.1% |
technotrans (XTRA:TTR1) | €18.70 | €29.76 | 37.2% |
Novem Group (XTRA:NVM) | €5.24 | €10.22 | 48.8% |
PSI Software (XTRA:PSAN) | €22.80 | €43.50 | 47.6% |
Stratec (XTRA:SBS) | €44.20 | €81.90 | 46% |
Wolftank-Adisa Holding (XTRA:WAH) | €11.40 | €22.47 | 49.3% |
SBF (DB:CY1K) | €3.08 | €5.77 | 46.6% |
CHAPTERS Group (XTRA:CHG) | €25.00 | €46.75 | 46.5% |
MTU Aero Engines (XTRA:MTX) | €249.20 | €419.68 | 40.6% |
Your Family Entertainment (DB:RTV) | €2.44 | €4.52 | 46% |
Let's uncover some gems from our specialized screener
Gerresheimer
Overview: Gerresheimer AG is a global company that manufactures and sells medical packaging and drug delivery devices, with a market capitalization of approximately €3.49 billion.
Operations: The company generates revenue through its Plastics & Devices and Primary Packaging Glass segments, contributing €1.09 billion and €0.91 billion respectively.
Estimated Discount To Fair Value: 23.1%
Gerresheimer AG, a German company, is recognized for its cash flow potential. Recent financials show a revenue increase to €466.14 million and net income to €13.01 million in Q1 2024. Analysts predict significant earnings growth above the market average at 20.4% annually and revenue growth forecasts between 5% and 15% for the next two years, indicating robust future performance. Despite high debt levels, the stock is trading at €101, substantially below the estimated fair value of €131.27, suggesting undervaluation based on discounted cash flow analysis.
MTU Aero Engines
Overview: MTU Aero Engines AG operates in the development, manufacture, marketing, and maintenance of commercial and military aircraft engines and industrial gas turbines globally, with a market capitalization of approximately €13.41 billion.
Operations: MTU Aero Engines generates revenue primarily through two segments: €4.35 billion from Commercial Maintenance Business (MRO) and €1.27 billion from the Commercial and Military Engine Business (OEM).
Estimated Discount To Fair Value: 40.6%
MTU Aero Engines AG, despite a slight dip in net income and EPS in Q1 2024, remains a compelling case for undervaluation based on cash flows. Currently trading at €249.2, significantly below the estimated fair value of €419.68, it shows potential for substantial appreciation. With expected revenue growth at 12.2% annually—surpassing the German market's 5.2%—and forecasted earnings growth of 35.18% per year, MTU is poised to outperform market expectations in profitability within three years.
Stabilus
Overview: Stabilus SE operates globally, manufacturing and selling gas springs, dampers, vibration isolation products, and electric tailgate equipment across various continents with a market capitalization of approximately €1.12 billion.
Operations: Stabilus generates revenue primarily from three geographic segments: €548.37 million from Europe, the Middle East, and Africa (EMEA), €465.72 million from the Americas, and €293.73 million from the Asia-Pacific region.
Estimated Discount To Fair Value: 44.1%
Stabilus SE, priced at €45.15, is significantly undervalued with a fair value estimation of €80.82, indicating a potential for substantial price correction. Despite recent adjustments to its FY2024 revenue forecasts down to between €1.3 billion and €1.35 billion due to weaker demand in key segments, the company's long-term earnings growth remains robust at 20.54% annually, outpacing the German market's average. However, concerns include a high debt level and unstable dividends alongside a recent decline in profit margins from 9.8% to 6%.
Next Steps
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include XTRA:GXI XTRA:MTX and XTRA:STM.
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