Yahoo Finance Exploring Undervalued Opportunities On The German Exchange With Discounts Ranging From 31.5% To 39.5%
Amidst a generally positive trend in European markets, with Germany's DAX index showing notable gains, investors continue to seek value in a landscape marked by shifting economic indicators and monetary policies. In this context, identifying undervalued stocks becomes crucial as it offers the potential for significant returns against the broader market movements.
Top 10 Undervalued Stocks Based On Cash Flows In Germany
Name | Current Price | Fair Value (Est) | Discount (Est) |
Kontron (XTRA:SANT) | €19.33 | €31.37 | 38.4% |
Novem Group (XTRA:NVM) | €5.62 | €10.77 | 47.8% |
Verbio (XTRA:VBK) | €17.31 | €28.12 | 38.4% |
MTU Aero Engines (XTRA:MTX) | €220.80 | €397.58 | 44.5% |
Stratec (XTRA:SBS) | €46.10 | €80.05 | 42.4% |
CHAPTERS Group (XTRA:CHG) | €23.60 | €44.77 | 47.3% |
SBF (DB:CY1K) | €3.14 | €5.29 | 40.6% |
Your Family Entertainment (DB:RTV) | €2.40 | €4.08 | 41.2% |
Redcare Pharmacy (XTRA:RDC) | €119.70 | €197.69 | 39.5% |
Dr. Hönle (XTRA:HNL) | €19.75 | €33.24 | 40.6% |
Let's uncover some gems from our specialized screener
adidas
Overview: Adidas AG operates globally, designing, developing, producing, and marketing athletic and sports lifestyle products across various regions, with a market capitalization of approximately €38.91 billion.
Operations: The company generates revenue from several geographic regions, with €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, currently trading at €217.9, which is 31.5% below our calculated fair value of €318.08, appears undervalued based on DCF analysis. The company's earnings have shown a significant turnaround, becoming profitable this year with an expected annual growth rate of 41.3%, outpacing the German market's 18.6%. Additionally, Adidas's revenue growth at 7.9% annually is also above the German market average of 5.2%. Recent corporate guidance has increased its operating profit forecast for 2024 to around €700 million from €500 million previously reported in Q1 results showing robust sales and net income improvements.
Our growth report here indicates adidas may be poised for an improving outlook.
Click here and access our complete balance sheet health report to understand the dynamics of adidas.
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 €2.43 billion.
Operations: The company generates revenue through two primary segments: €1.62 billion from the DACH region and €0.37 billion internationally.
Estimated Discount To Fair Value: 39.5%
Redcare Pharmacy, priced at €119.7, is considerably below the estimated fair value of €197.69, suggesting undervaluation based on DCF metrics. The company's revenue is expected to grow by 17% annually, surpassing the German market average of 5.2%. Although currently unprofitable, Redcare is projected to shift towards profitability within three years with an anticipated earnings growth rate of 46.9% per annum. However, its forecasted Return on Equity remains modest at 12.9%. Recent financials indicate a reduction in net loss and a significant increase in sales from €372.05 million to €560.22 million year-over-year for Q1 2024.
SAP
Overview: SAP SE, along with its subsidiaries, offers a range of applications, technology, and services globally, boasting a market capitalization of approximately €210.59 billion.
Operations: The company generates €31.81 billion from its Applications, Technology & Services segment.
Estimated Discount To Fair Value: 33.2%
SAP, trading at €181.72, appears undervalued based on DCF analysis with a fair value estimate of €272.22. Recent strategic alliances and technological integrations, such as the expansion with LTIMindtree to enhance complex manufacturing solutions and certification by FloQast for seamless SAP BTP integration, underscore its commitment to operational efficiency and market expansion. Despite a low forecasted Return on Equity of 16.1% in three years, SAP's revenue and earnings growth are expected to outpace the German market significantly at rates of 9.3% and 33.5% per year respectively.
Insights from our recent growth report point to a promising forecast for SAP's business outlook.
Take a closer look at SAP's balance sheet health here in our report.
Next Steps
Dive into all 31 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:ADS XTRA:RDC and XTRA:SAP.
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