Yahoo Finance Adesso And Two More German Exchange Stocks Considered Below Estimated Value
Recent political uncertainties and economic data have led to a mixed performance across European stock markets, with Germany's DAX index notably retreating. In such an environment, identifying stocks that appear undervalued relative to their fundamentals could offer potential opportunities for investors looking for value in a volatile market.
Top 10 Undervalued Stocks Based On Cash Flows In Germany
Name | Current Price | Fair Value (Est) | Discount (Est) |
Kontron (XTRA:SANT) | €19.95 | €31.54 | 36.7% |
SAP (XTRA:SAP) | €176.28 | €281.60 | 37.4% |
MTU Aero Engines (XTRA:MTX) | €223.60 | €396.68 | 43.6% |
Stratec (XTRA:SBS) | €45.85 | €79.84 | 42.6% |
Verbio (XTRA:VBK) | €18.26 | €28.74 | 36.5% |
CHAPTERS Group (XTRA:CHG) | €23.80 | €44.54 | 46.6% |
SBF (DB:CY1K) | €2.84 | €5.22 | 45.6% |
Redcare Pharmacy (XTRA:RDC) | €115.60 | €197.69 | 41.5% |
Your Family Entertainment (DB:RTV) | €2.40 | €4.08 | 41.1% |
Dr. Hönle (XTRA:HNL) | €19.90 | €33.17 | 40% |
Here's a peek at a few of the choices from the screener
adesso
Overview: adesso SE, a company operating internationally with a focus on IT services primarily in Germany, Austria, and Switzerland, has a market capitalization of approximately €588.78 million.
Operations: The company generates revenue primarily through two segments: IT Services at €1.31 billion and IT Solutions at €119.88 million.
Estimated Discount To Fair Value: 11.1%
Adesso SE, a German technology firm, is currently trading at €90.3, which is 11.1% below our calculated fair value of €101.59. Despite a significant drop in net income from €28.6 million to €3.21 million in the recent fiscal year, adesso's revenue growth prospects appear robust with an expected increase of 11.9% per year—outpacing the German market forecast of 5.1%. However, its ability to cover interest payments with earnings remains weak, suggesting some financial vulnerabilities despite the favorable growth outlook and underpricing based on cash flows.
MBB
Overview: MBB SE operates primarily in the technology and engineering sectors, focusing on acquiring and managing medium-sized companies globally, with a market capitalization of approximately €0.61 billion.
Operations: MBB SE generates revenue through three main segments: Consumer Goods (€94.23 million), Technical Applications (€378.50 million), and Service & Infrastructure (€487.10 million).
Estimated Discount To Fair Value: 12.7%
MBB SE, priced at €107.2, is positioned below our estimated fair value of €122.79, reflecting a modest undervaluation based on cash flows. Recent financials show a rebound with net income shifting from a loss to €5.77 million in Q1 2024 and annual earnings growth hitting 63.9%. Despite these gains, MBB's projected return on equity remains low at 9.6% over three years. However, its revenue and earnings are expected to outperform the German market with forecasts of 7.1% and 33.5% growth per year respectively.
According our earnings growth report, there's an indication that MBB might be ready to expand.
Click here to discover the nuances of MBB with our detailed financial health report.
Redcare Pharmacy
Overview: Redcare Pharmacy NV is an online pharmacy operating across the Netherlands, Germany, Italy, Belgium, Switzerland, Austria, and France with a market capitalization of approximately €2.35 billion.
Operations: The company generates €1.62 billion from its DACH region operations and €0.37 billion internationally.
Estimated Discount To Fair Value: 41.5%
Redcare Pharmacy, with a current price of €115.6, trades significantly below our fair value estimate of €197.69, suggesting deep undervaluation based on cash flows. Despite a net loss reduction in Q1 2024 to €7.81 million from €10.22 million year-over-year and increased sales to €560.22 million, profitability is anticipated within three years with earnings expected to grow by 46.89% annually. However, its forecasted revenue growth at 17% per year lags behind the desired 20%, and shareholder dilution occurred over the past year.
Our growth report here indicates Redcare Pharmacy may be poised for an improving outlook.
Dive into the specifics of Redcare Pharmacy here with our thorough financial health report.
Seize The Opportunity
Click here to access our complete index of 29 Undervalued German Stocks Based On Cash Flows.
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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:MBB XTRA:RDC
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