In This Article:
As European markets experience a modest uptick, with indices like the STOXX Europe 600 showing resilience in the face of global economic shifts, investors are keenly watching for opportunities. In this context, identifying undervalued stocks on Euronext Amsterdam could be particularly compelling for those looking to potentially benefit from market adjustments and economic forecasts.
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% |
Arcadis (ENXTAM:ARCAD) | €62.25 | €119.03 | 47.7% |
Alfen (ENXTAM:ALFEN) | €18.11 | €24.88 | 27.2% |
Ctac (ENXTAM:CTAC) | €3.07 | €3.80 | 19.1% |
Ordina (ENXTAM:ORDI) | €5.70 | €10.64 | 46.4% |
Envipco Holding (ENXTAM:ENVI) | €5.70 | €6.79 | 16% |
Let's take a closer look at a couple of our picks from the screened companies.
Alfen
Overview: Alfen N.V. specializes in smart grids, energy storage systems, and electric vehicle charging equipment, with a market capitalization of approximately €393.34 million.
Operations: Alfen N.V.'s revenue is derived from three primary segments: Smart Grid Solutions generating €188.38 million, EV Charging Equipment at €153.12 million, and Energy Storage Systems contributing €162.98 million.
Estimated Discount To Fair Value: 27.2%
Alfen N.V. appears undervalued based on discounted cash flow analysis, trading at €18.11 against an estimated fair value of €24.88. Despite a recent reduction in its 2024 revenue guidance from between €590 million to €660 million down to between €485 million to €500 million, the company is poised for robust earnings growth, with forecasts suggesting a 20.32% annual increase over the next three years. However, it's important to note that Alfen's profit margins have declined from last year's 12.1% to 5.9%, indicating some operational challenges amidst its growth trajectory and highly volatile share price in recent months.
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According our earnings growth report, there's an indication that Alfen might be ready to expand.
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Take a closer look at Alfen's balance sheet health here in our report.
Arcadis
Overview: Arcadis NV, a global company headquartered in the Netherlands, provides design, engineering, and consultancy services for natural and built assets across The Americas, Europe, the Middle East, and Asia Pacific with a market capitalization of approximately €5.60 billion.
Operations: The company generates revenue through various segments, with €1.95 billion from Resilience, €1.94 billion from Places, €978.80 million from Mobility, and €122.50 million from Intelligence.