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

Click here to see the full list of 6 stocks from our Undervalued Euronext Amsterdam Stocks Based On Cash Flows screener.

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.

• According our earnings growth report, there's an indication that Alfen might be ready to expand.

• 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.

Estimated Discount To Fair Value: 47.7%

Arcadis, with a current trading price of €62.25, is significantly undervalued based on a discounted cash flow valuation of €119.03. Despite slow revenue growth forecasts at 1.5% per year, earnings are expected to increase by 20.48% annually. Recent contracts like the digital asset management project for the City of Henderson underline its strategic expansion in intelligent systems and public sector engagement in North America, enhancing its business profile despite some operational risks indicated by substantial insider selling over the past quarter.

• In light of our recent growth report, it seems possible that Arcadis' financial performance will exceed current levels.

• Click to explore a detailed breakdown of our findings in Arcadis' balance sheet health report.

Envipco Holding

Overview: Envipco Holding N.V. operates in the environmental technology sector, focusing on the design, development, and service of reverse vending machines for recycling used beverage containers, with a market capitalization of approximately €328.84 million.

Operations: Envipco Holding N.V. generates revenue by designing, developing, and servicing reverse vending machines for recycling used beverage containers, primarily across the Netherlands, North America, and other parts of Europe.

Estimated Discount To Fair Value: 16%

Envipco Holding, currently priced at €5.7, is trading 16% below its estimated fair value of €6.79, reflecting a modest undervaluation based on discounted cash flow analysis. Recently turning profitable with a first quarter net income of €0.147 million after previous losses, the company shows promising financial recovery with significant revenue growth at 33.3% per year expected to outpace the Dutch market's 9.8%. However, shareholder dilution over the past year and high share price volatility may pose risks for investors.

• Our earnings growth report unveils the potential for significant increases in Envipco Holding's future results.

• Click here to discover the nuances of Envipco Holding with our detailed financial health report.

Key Takeaways

• Unlock more gems! Our Undervalued Euronext Amsterdam Stocks Based On Cash Flows screener has unearthed 3 more companies for you to explore.Click here to unveil our expertly curated list of 6 Undervalued Euronext Amsterdam Stocks Based On Cash Flows.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include ENXTAM:ALFEN ENXTAM:ARCAD and ENXTAM:ENVI.

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