Yahoo Finance June 2024 Insights Into German Exchange Stocks Estimated To Be Undervalued
Amidst a generally positive trend in European markets with Germany's DAX index showing notable gains, investors are keenly observing opportunities that might be undervalued. In such a market environment, identifying stocks that have not fully reflected their potential can provide attractive investment avenues.
Top 10 Undervalued Stocks Based On Cash Flows In Germany
Name | Current Price | Fair Value (Est) | Discount (Est) |
Novem Group (XTRA:NVM) | €5.60 | €10.78 | 48% |
Verbio (XTRA:VBK) | €17.50 | €28.30 | 38.2% |
elumeo (XTRA:ELB) | €2.44 | €4.79 | 49% |
MTU Aero Engines (XTRA:MTX) | €228.60 | €397.59 | 42.5% |
Stratec (XTRA:SBS) | €47.15 | €80.18 | 41.2% |
CHAPTERS Group (XTRA:CHG) | €23.80 | €44.75 | 46.8% |
SBF (DB:CY1K) | €2.84 | €5.24 | 45.8% |
Your Family Entertainment (DB:RTV) | €2.40 | €4.07 | 41.1% |
Redcare Pharmacy (XTRA:RDC) | €117.20 | €197.69 | 40.7% |
Dr. Hönle (XTRA:HNL) | €19.75 | €33.22 | 40.5% |
Let's review some notable picks from our screened stocks
adidas
Overview: Adidas AG is a global company that designs, develops, produces, and markets athletic and sports lifestyle products across multiple regions, with a market capitalization of approximately €38.89 billion.
Operations: The company generates revenue primarily from three geographic segments: €5.16 billion from North America, €3.20 billion from Greater China, and €2.31 billion from Latin America.
Estimated Discount To Fair Value: 31.5%
Adidas AG, currently priced at €217.8, appears undervalued based on a discounted cash flow valuation of €317.97, indicating significant potential upside. The company's earnings are expected to grow by 41.3% annually over the next three years, outpacing the German market's growth rate of 18.6%. Additionally, Adidas has recently transitioned from a net loss to reporting a net income of €170 million in Q1 2024 and improved its earnings guidance for the year to around €700 million.
Gerresheimer
Overview: Gerresheimer AG is a global company that specializes in the production and sale of medical packaging and drug delivery devices, with a market capitalization of approximately €3.28 billion.
Operations: The company generates revenue primarily through its Plastics & Devices and Primary Packaging Glass segments, which reported earnings of €1.09 billion and €908.16 million respectively.
Estimated Discount To Fair Value: 21%
Gerresheimer AG, with a current valuation of €95.1, is trading below the estimated fair value of €120.37, suggesting it is undervalued by over 20%. Analysts forecast a significant earnings growth at 20.8% annually for the next three years, outperforming the German market's expectation of 18.6%. However, its debt level remains high and revenue growth projections (10.4% annually) lag behind more aggressive market averages (20% per year). Recent corporate activities include providing positive earnings guidance for 2024 and 2025 during recent shareholder meetings and conferences.
M1 Kliniken
Overview: M1 Kliniken AG operates in the field of aesthetic medicine and plastic surgery across Germany, Austria, the Netherlands, Switzerland, the UK, Croatia, Hungary, Bulgaria, Romania, and Australia with a market capitalization of €326.92 million.
Operations: M1 Kliniken AG generates €245.49 million from its Trade segment and €70.83 million from its Beauty segment.
Estimated Discount To Fair Value: 18.6%
M1 Kliniken AG, priced at €17.85, is below the fair value estimate of €21.93, marking it as undervalued by 18.6%. It has shown robust past earnings growth of 138% and is expected to continue with an earnings growth forecast of 24.4% annually over the next three years, surpassing the German market's average of 18.6%. However, its dividends are poorly supported by earnings and cash flows, reflecting potential sustainability issues despite strong profit projections.
Our growth report here indicates M1 Kliniken may be poised for an improving outlook.
Take a closer look at M1 Kliniken's balance sheet health here in our report.
Taking Advantage
Unlock our comprehensive list of 33 Undervalued German Stocks Based On Cash Flows by clicking here.
Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.
Want To Explore Some Alternatives?
Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
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:ADS XTRA:GXI and XTRA:M12.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
