Yahoo Finance Exploring Undervalued Opportunities On The German Exchange With Discounts Ranging From 12.8% To 33.6%
Amidst a backdrop of political stability and modest gains across major European indices, the German market presents intriguing possibilities for investors looking to capitalize on undervalued stocks. With Germany's DAX index recently up by 1.32%, discerning investors might find attractive opportunities in stocks that are currently trading below their intrinsic values, especially in a market environment characterized by cautious optimism and economic recalibration.
Top 10 Undervalued Stocks Based On Cash Flows In Germany
Name | Current Price | Fair Value (Est) | Discount (Est) |
Stabilus (XTRA:STM) | €43.80 | €80.04 | 45.3% |
technotrans (XTRA:TTR1) | €18.25 | €29.63 | 38.4% |
PSI Software (XTRA:PSAN) | €22.80 | €43.51 | 47.6% |
Stratec (XTRA:SBS) | €45.05 | €82.15 | 45.2% |
Wolftank-Adisa Holding (XTRA:WAH) | €11.30 | €22.46 | 49.7% |
SBF (DB:CY1K) | €2.96 | €5.73 | 48.4% |
CHAPTERS Group (XTRA:CHG) | €24.40 | €46.76 | 47.8% |
Rubean (DB:R1B) | €5.90 | €11.00 | 46.4% |
MTU Aero Engines (XTRA:MTX) | €245.20 | €418.77 | 41.4% |
Your Family Entertainment (DB:RTV) | €2.56 | €4.52 | 43.4% |
Let's dive into some prime choices out of from the screener.
adesso
Overview: Adesso SE, an IT services provider operating in Germany, Austria, Switzerland, and internationally, has a market capitalization of approximately €588.78 million.
Operations: The company generates revenue primarily through two segments: IT Services (€1.31 billion) and IT Solutions (€119.88 million).
Estimated Discount To Fair Value: 12.8%
Adesso, currently trading at €90.3, is valued below our fair value estimate of €103.59, indicating potential undervaluation based on discounted cash flows. Despite a forecasted low return on equity of 13.6% in three years, adesso is expected to grow earnings by 37.96% annually and become profitable within the same period. Revenue growth projections stand at 11.9% per year, outpacing the German market's average of 5.5%. However, its ability to cover interest payments with earnings is weak.
adidas
Overview: Adidas AG operates globally, designing, developing, producing, and marketing athletic and sports lifestyle products across multiple regions, with a market capitalization of approximately €40.32 billion.
Operations: Adidas generates €3.20 billion in revenue from Greater China, €2.31 billion from Latin America, and €5.16 billion from North America.
Estimated Discount To Fair Value: 33.6%
Adidas AG, with a recent upturn in financial performance, reported a Q1 2024 net income of €170 million, rebounding from a loss the previous year. Currently priced at €225.8, it trades 33.6% below our calculated fair value of €340.27. The company's earnings are projected to grow by 41.3% annually, outstripping the German market's forecast of 18.7%. Additionally, adidas's revenue growth is expected to surpass the national average at 7.9% per year against Germany’s 5.5%.
The analysis detailed in our adidas growth report hints at robust future financial performance.
Click here and access our complete balance sheet health report to understand the dynamics of adidas.
Gerresheimer
Overview: Gerresheimer AG is a global manufacturer and supplier of pharmaceutical packaging and drug delivery devices, with a market capitalization of approximately €3.63 billion.
Operations: The company's revenue is primarily generated from its Plastics & Devices and Primary Packaging Glass segments, which respectively brought in €1.09 billion and €908.16 million.
Estimated Discount To Fair Value: 22.7%
Gerresheimer AG, valued at €105, is perceived as undervalued with a fair value estimate of €135.77, reflecting a 22.7% potential upside. Despite recent earnings showing a slight decline with Q2 net income at €32.46 million compared to €34.43 million the previous year, the company's earnings are expected to grow by 20.41% annually over the next three years, outpacing the German market's growth rate of 18.7%. However, it carries a high level of debt which may concern investors looking for secure cash flow investments.
Our growth report here indicates Gerresheimer may be poised for an improving outlook.
Dive into the specifics of Gerresheimer here with our thorough financial health report.
Seize The Opportunity
Dive into all 29 of the Undervalued German Stocks Based On Cash Flows we have identified here.
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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:ADN1XTRA:ADS XTRA:GXI
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