Basler Leads Trio Of Stocks Estimated To Be Trading Below Fair Value On German Exchange

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Amidst a challenging week for European markets, characterized by political uncertainties and volatile bond yields, investors are navigating cautiously. In such an environment, identifying stocks that appear undervalued relative to their fundamentals could offer potential opportunities for discerning investors.

Top 10 Undervalued Stocks Based On Cash Flows In Germany

Name

Current Price

Fair Value (Est)

Discount (Est)

Kontron (XTRA:SANT)

€20.24

€31.45

35.6%

SAP (XTRA:SAP)

€175.76

€281.90

37.7%

MTU Aero Engines (XTRA:MTX)

€225.00

€399.53

43.7%

Stratec (XTRA:SBS)

€47.00

€80.11

41.3%

SBF (DB:CY1K)

€2.76

€5.25

47.4%

CHAPTERS Group (XTRA:CHG)

€23.80

€44.35

46.3%

GIEAG Immobilien (MUN:2GI)

€2.30

€4.44

48.2%

Redcare Pharmacy (XTRA:RDC)

€111.90

€197.69

43.4%

Your Family Entertainment (DB:RTV)

€2.40

€4.09

41.3%

Dr. H?nle (XTRA:HNL)

€19.85

€33.18

40.2%

Click here to see the full list of 31 stocks from our Undervalued German Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results

Basler

Overview: Basler Aktiengesellschaft specializes in developing, manufacturing, and selling digital cameras for professional users globally, with a market capitalization of approximately €0.36 billion.

Operations: The company generates €190.30 million from its camera segment.

Estimated Discount To Fair Value: 18.1%

Basler, despite recent financial setbacks with a reported significant decline in year-over-year sales and shifting from net income to a net loss, shows potential underpinned by strong future growth expectations. Analysts forecast an 84.03% earnings growth per year, positioning it for profitability within three years. Currently trading at €11.64, below the estimated fair value of €14.22, Basler presents an opportunity as it is undervalued based on cash flow analysis but faces challenges in achieving high return on equity.

XTRA:BSL Discounted Cash Flow as at Jun 2024
XTRA:BSL Discounted Cash Flow as at Jun 2024

CHAPTERS Group

Overview: CHAPTERS Group AG operates in the DACH region, offering software solutions through its subsidiaries, with a market capitalization of approximately €0.43 billion.

Operations: The company generates revenue primarily from data processing, contributing €70.77 million.

Estimated Discount To Fair Value: 46.3%

CHAPTERS Group AG, with a recent revenue jump from €42.07 million to €70.77 million, shows promising growth, outpacing the German market significantly. Despite a net loss reduction to €4.08 million from €5.89 million, profitability is expected within three years. The stock is currently undervalued by over 20%, trading at €23.8 against a fair value of €44.35, based on DCF analysis. However, shareholder dilution occurred last year and return on equity is projected to be low at 13%.