In This Article:
As European inflation nears the central bank's target, Germany’s DAX has reached new highs, reflecting optimism in the market. Despite some caution from policymakers and mixed economic sentiment, there are opportunities for investors to find undervalued stocks that could offer significant value. In this context, identifying a good stock often involves looking at companies with strong fundamentals and growth potential that may not yet be fully appreciated by the market. This article will explore adidas and two other German stocks that could be trading below their estimated value.
Top 10 Undervalued Stocks Based On Cash Flows In Germany
Name | Current Price | Fair Value (Est) | Discount (Est) |
MBB (XTRA:MBB) | €99.50 | €195.06 | 49% |
technotrans (XTRA:TTR1) | €17.15 | €31.42 | 45.4% |
Gerresheimer (XTRA:GXI) | €104.50 | €192.46 | 45.7% |
ecotel communication ag (XTRA:E4C) | €12.80 | €21.95 | 41.7% |
Verbio (XTRA:VBK) | €16.42 | €30.14 | 45.5% |
Schweizer Electronic (XTRA:SCE) | €4.28 | €7.54 | 43.2% |
MTU Aero Engines (XTRA:MTX) | €265.10 | €496.81 | 46.6% |
Dr. Hönle (XTRA:HNL) | €15.45 | €28.57 | 45.9% |
elumeo (XTRA:ELB) | €2.22 | €3.92 | 43.3% |
LPKF Laser & Electronics (XTRA:LPK) | €8.22 | €12.49 | 34.2% |
Let's review some notable picks from our screened stocks.
adidas
Overview: adidas AG, with a market cap of €41.07 billion, designs, develops, produces, and markets athletic and sports lifestyle products across Europe, the Middle East, Africa, North America, Greater China, the Asia-Pacific region, and Latin America.
Operations: The company's revenue segments include €3.26 billion from Greater China, €2.39 billion from Latin America, and €5.07 billion from North America.
Estimated Discount To Fair Value: 17.3%
adidas AG appears undervalued based on cash flows, trading at €230, below its estimated fair value of €278.20. Recent earnings reports show robust growth with Q2 2024 net income at €190 million compared to €84 million a year ago. Revenue is expected to grow at 8.3% annually, outpacing the German market's 5.5%. Earnings are forecasted to grow significantly by 41.8% per year over the next three years, reflecting strong future profitability and return on equity projections of 31.6%.
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According our earnings growth report, there's an indication that adidas might be ready to expand.
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Take a closer look at adidas' balance sheet health here in our report.
Gerresheimer
Overview: Gerresheimer AG, with a market cap of €3.60 billion, manufactures and sells medicine packaging, drug delivery devices, and solutions in Germany and internationally through its subsidiaries.