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As European markets grapple with political uncertainties and economic challenges, investors may find potential opportunities in undervalued stocks on Euronext Amsterdam. Amidst fluctuating indices and cautious investor sentiment, identifying stocks that appear undervalued could offer a strategic advantage in navigating the current market landscape.
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) | €1.379 | €2.68 | 48.5% |
Theon International (ENXTAM:THEON) | €12.832 | €19.13 | 32.9% |
Arcadis (ENXTAM:ARCAD) | €58.70 | €114.65 | 48.8% |
Ordina (ENXTAM:ORDI) | €5.70 | €10.64 | 46.4% |
InPost (ENXTAM:INPST) | €16.66 | €30.76 | 45.8% |
Ctac (ENXTAM:CTAC) | €3.18 | €3.81 | 16.5% |
Alfen (ENXTAM:ALFEN) | €33.52 | €40.20 | 16.6% |
Below we spotlight a couple of our favorites from our exclusive screener
Alfen
Overview: Alfen N.V. specializes in smart grids, energy storage systems, and electric vehicle charging equipment, with a market capitalization of approximately €0.73 billion.
Operations: The company generates revenue from three primary segments: Smart Grid Solutions (€188.38 million), EV Charging Equipment (€153.12 million), and Energy Storage Systems (€162.98 million).
Estimated Discount To Fair Value: 16.6%
Alfen, priced at €33.52, is trading under the estimated fair value of €40.20, reflecting a modest undervaluation based on discounted cash flow analysis. Despite a profit margin decline from 12.1% to 5.9%, Alfen's earnings are expected to grow by 20.13% annually, outpacing the Dutch market's forecasted growth. The company also boasts a projected high return on equity of 23.2% in three years and maintains high-quality earnings with significant non-cash components, though it faces challenges with share price volatility.
InPost
Overview: InPost S.A. operates as an out-of-home e-commerce enablement platform in Europe, offering parcel locker services with a market capitalization of approximately €8.33 billion.
Operations: The company generates revenue primarily through its Segment Adjustment and International - Mondial Relay activities, with earnings of PLN 6.35 billion and PLN 2.92 billion respectively.
Estimated Discount To Fair Value: 45.8%