Yahoo Finance Exploring Hidden Gems: Three Stocks On Euronext Amsterdam That May Be Trading Below Their Estimated Value
Amidst a backdrop of political uncertainty and fluctuating bond yields in European markets, investors are keenly observing market dynamics for potential opportunities. In such a climate, identifying undervalued stocks on Euronext Amsterdam could present intriguing prospects for those looking to diversify or enhance their portfolios. A good stock in this context is one that appears undervalued relative to its financial health and market position, potentially offering growth as market conditions stabilize.
Top 5 Undervalued Stocks Based On Cash Flows In The Netherlands
Name | Current Price | Fair Value (Est) | Discount (Est) |
Majorel Group Luxembourg (ENXTAM:MAJ) | €29.45 | €55.97 | 47.4% |
PostNL (ENXTAM:PNL) | €1.394 | €2.69 | 48.1% |
Arcadis (ENXTAM:ARCAD) | €59.60 | €114.85 | 48.1% |
Ordina (ENXTAM:ORDI) | €5.70 | €10.64 | 46.4% |
InPost (ENXTAM:INPST) | €16.95 | €31.04 | 45.4% |
Ctac (ENXTAM:CTAC) | €3.14 | €3.82 | 17.8% |
Alfen (ENXTAM:ALFEN) | €34.02 | €40.27 | 15.5% |
Let's take a closer look at a couple of our picks from the screened companies
Arcadis
Overview: Arcadis NV is a global company providing design, engineering, and consultancy solutions for natural and built assets, with a market capitalization of approximately €5.36 billion.
Operations: Arcadis generates revenue through various segments, with €1.95 billion from Resilience, €1.94 billion from Places, €978.80 million from Mobility, and €122.50 million from Intelligence.
Estimated Discount To Fair Value: 48.1%
Arcadis NV, despite its slower revenue growth forecast at 1.6% per year compared to the Dutch market's 9.5%, is expected to see significant earnings growth of 20.7% annually, outpacing the market forecast of 16.4%. This robust profit expansion is coupled with a high projected return on equity of 23.9% in three years, indicating strong profitability potential. However, the company carries a high level of debt which could be a concern for risk-averse investors. Additionally, Arcadis recently increased its dividend to €0.85 per share, reflecting confidence in its operational income.
The analysis detailed in our Arcadis growth report hints at robust future financial performance.
Click to explore a detailed breakdown of our findings in Arcadis' balance sheet health report.
InPost
Overview: InPost S.A. operates as an out-of-home e-commerce enablement platform, offering parcel locker services across Europe, with a market capitalization of approximately €8.47 billion.
Operations: The company generates revenue primarily through its Segment Adjustment and International - Mondial Relay segments, with respective earnings of PLN 6.35 billion and PLN 2.92 billion.
Estimated Discount To Fair Value: 45.4%
InPost, priced at €16.95, is trading 45.4% below its fair value of €31.04, signaling a significant undervaluation based on discounted cash flows. Despite carrying a high level of debt, the company's robust financial outlook includes an expected revenue growth of 15.5% per year—surpassing the Dutch market average of 9.5%. Moreover, InPost's earnings are projected to increase by 27.9% annually over the next three years, which is notably higher than the market forecast of 16.4%. Recent financial reports show strong past performance with substantial increases in quarterly sales and net income.
PostNL
Overview: PostNL N.V. operates as a postal and logistics service provider in the Netherlands, across Europe, and internationally, with a market capitalization of approximately €0.70 billion.
Operations: The company's revenue is derived from two main segments: Packages, generating €2.25 billion, and Mail in The Netherlands, contributing €1.35 billion.
Estimated Discount To Fair Value: 48.1%
PostNL, currently facing challenges with a recent net loss of €20 million and a slight revenue dip to €763 million, still holds potential in the undervalued stocks category based on cash flows. Despite these setbacks, PostNL's earnings are expected to grow by 24.2% annually over the next three years, outpacing the Dutch market's 16.4%. However, its dividend track record remains unstable and it carries a high level of debt which could impact future financial flexibility.
The growth report we've compiled suggests that PostNL's future prospects could be on the up.
Click here to discover the nuances of PostNL with our detailed financial health report.
Where To Now?
Gain an insight into the universe of 7 Undervalued Euronext Amsterdam Stocks Based On Cash Flows by clicking 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 ENXTAM:ARCAD ENXTAM:INPST and ENXTAM:PNL.
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