Exploring Undervalued Opportunities: 3 Stocks On Euronext Amsterdam With Intrinsic Discounts Ranging From 19% To 47%
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Amidst a backdrop of fluctuating global markets and ongoing trade tensions, the Euronext Amsterdam presents intriguing opportunities for investors seeking value. In this environment, identifying undervalued stocks that have potential for appreciation becomes particularly compelling.
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% |
Alfen (ENXTAM:ALFEN) | €16.695 | €24.81 | 32.7% |
Ctac (ENXTAM:CTAC) | €3.08 | €3.83 | 19.7% |
Arcadis (ENXTAM:ARCAD) | €63.25 | €119.30 | 47% |
Ordina (ENXTAM:ORDI) | €5.70 | €10.64 | 46.4% |
Envipco Holding (ENXTAM:ENVI) | €5.50 | €6.79 | 19% |
Let's dive into some prime choices out of from the screener.
Alfen
Overview: Alfen N.V. specializes in smart grids, energy storage systems, and electric vehicle charging equipment, with a market capitalization of approximately €0.36 billion.
Operations: The company generates revenue through 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: 32.7%
Alfen, priced at €16.7, trades significantly below its estimated fair value of €24.81, marking a 32.7% undervaluation based on discounted cash flows. Despite recent lowered revenue guidance for 2024—from €590 million to between €485 million and €500 million—Alfen's earnings are expected to outpace the Dutch market with a forecasted growth rate of 20.1% annually. However, its profit margins have dipped from last year’s 12.1% to 5.9%. This blend of high forecasted earnings growth and current undervaluation positions Alfen intriguingly in the realm of cash flow-based investment opportunities in the Netherlands.
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The analysis detailed in our Alfen growth report hints at robust future financial performance.
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Click to explore a detailed breakdown of our findings in Alfen's balance sheet health report.
Arcadis
Overview: Arcadis NV is a global company providing design, engineering, and consultancy services for natural and built assets with a market capitalization of approximately €5.69 billion.
Operations: Arcadis generates revenue through various segments, with €1.94 billion from Places, €978.80 million from Mobility, €1.96 billion from Resilience, and €122.50 million from Intelligence.
Estimated Discount To Fair Value: 47%
Arcadis, trading at €63.25, is perceived as undervalued with a fair value estimate of €119.3 based on discounted cash flows, indicating substantial underpricing by 47%. Recent contracts like leading digital asset management for the City of Henderson underscore its strategic growth in intelligent systems. While earnings are expected to grow 20.48% annually, surpassing the Dutch market's 18.4%, revenue growth projections remain modest at 1.5% per year, trailing the broader market forecast of 10.1%.