Yahoo Finance July 2024 Insights Into German Exchange Stocks Estimated as Undervalued
Amid a backdrop of moderate gains across major European indices, with Germany's DAX index recently climbing by 1.32%, investors are keenly observing market movements for potential opportunities. In this context, identifying undervalued stocks within the German market could offer attractive entry points against the current economic landscape marked by cautious optimism and evolving monetary policies.
Top 10 Undervalued Stocks Based On Cash Flows In Germany
Name | Current Price | Fair Value (Est) | Discount (Est) |
Stabilus (XTRA:STM) | €45.80 | €81.24 | 43.6% |
technotrans (XTRA:TTR1) | €18.90 | €29.84 | 36.7% |
Novem Group (XTRA:NVM) | €5.20 | €10.19 | 49% |
PSI Software (XTRA:PSAN) | €22.50 | €43.46 | 48.2% |
Stratec (XTRA:SBS) | €45.40 | €82.22 | 44.8% |
SBF (DB:CY1K) | €3.10 | €5.83 | 46.8% |
CHAPTERS Group (XTRA:CHG) | €23.80 | €46.60 | 48.9% |
MTU Aero Engines (XTRA:MTX) | €253.70 | €421.41 | 39.8% |
Your Family Entertainment (DB:RTV) | €2.46 | €4.51 | 45.5% |
Redcare Pharmacy (XTRA:RDC) | €136.70 | €215.36 | 36.5% |
Here's a peek at a few of the choices from the screener
Gerresheimer
Overview: Gerresheimer AG operates globally, specializing in the production and sale of medical packaging and drug delivery devices, with a market capitalization of approximately €3.49 billion.
Operations: The company's revenue is primarily derived from its Plastics & Devices and Primary Packaging Glass segments, generating €1.09 billion and €0.91 billion respectively.
Estimated Discount To Fair Value: 23.1%
Gerresheimer AG, priced at €101, is trading below its estimated fair value of €131.34, reflecting a 23.1% undervaluation. Analyst consensus suggests a potential price increase of 33.5%. Despite high debt levels and a forecasted low Return on Equity of 13.8% in three years, the company's earnings are expected to grow significantly at 20.41% annually over the next three years, outpacing the German market's growth rate (18.8%). Recent guidance predicts revenue growth between 5% and 15% through 2025.
M1 Kliniken
Overview: M1 Kliniken AG operates a chain offering aesthetic medicine and plastic surgery services across Germany, Austria, the Netherlands, Switzerland, the UK, Croatia, Hungary, Bulgaria, Romania, and Australia with a market capitalization of approximately €312.27 million.
Operations: The company generates its revenue from two primary segments: Trade, which brought in €245.49 million, and Beauty, contributing €70.83 million.
Estimated Discount To Fair Value: 20.7%
M1 Kliniken AG, with a current price of €17.05, is valued below its fair value of €21.5, indicating a significant undervaluation. The company's earnings have surged by 138% over the past year and are projected to grow at 24.4% annually, outstripping the German market's forecasted growth. Despite this robust earnings trajectory and a revenue growth forecast faster than the market average, its share price remains highly volatile and its dividends are poorly covered by earnings and cash flows.
SAP
Overview: SAP SE, along with its subsidiaries, offers applications, technology, and services globally and has a market capitalization of approximately €217.68 billion.
Operations: The company generates €31.81 billion from its Applications, Technology & Services segment.
Estimated Discount To Fair Value: 33.7%
SAP, priced at €187.84, trades significantly below its estimated fair value of €283.43, reflecting a substantial undervaluation based on discounted cash flows. The company's revenue and earnings growth are projected to outpace the German market, with revenues increasing by 9.6% annually and earnings by 34% annually. Recent strategic alliances and technological integrations, such as the expanded partnership with Datricks and LTIMindtree, enhance SAP's offerings in risk mitigation and complex manufacturing solutions, potentially bolstering its financial position further despite a forecasted low return on equity of 16.1% in three years.
Turning Ideas Into Actions
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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:GXI XTRA:M12 and XTRA:SAP.
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