In This Article:
As the pan-European STOXX Europe 600 Index continues its streak of weekly gains, buoyed by encouraging company results and resilience amidst global trade uncertainties, investors are increasingly focused on identifying stocks trading below their estimated value. In this environment, a good stock is one that not only shows potential for growth but also offers a margin of safety in its valuation, making it an attractive opportunity amid mixed economic signals across the Eurozone.
Top 10 Undervalued Stocks Based On Cash Flows In Europe
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Laboratorios Farmaceuticos Rovi (BME:ROVI) | €54.05 | €107.22 | 49.6% |
| Absolent Air Care Group (OM:ABSO) | SEK263.00 | SEK511.00 | 48.5% |
| Cambi (OB:CAMBI) | NOK18.80 | NOK37.37 | 49.7% |
| Vimi Fasteners (BIT:VIM) | €0.985 | €1.92 | 48.6% |
| Wienerberger (WBAG:WIE) | €35.30 | €68.45 | 48.4% |
| TF Bank (OM:TFBANK) | SEK373.00 | SEK718.74 | 48.1% |
| Hybrid Software Group (ENXTBR:HYSG) | €3.60 | €7.03 | 48.8% |
| Star7 (BIT:STAR7) | €6.25 | €12.31 | 49.2% |
| Fodelia Oyj (HLSE:FODELIA) | €7.22 | €13.91 | 48.1% |
| Bactiguard Holding (OM:BACTI B) | SEK35.30 | SEK69.48 | 49.2% |
Below we spotlight a couple of our favorites from our exclusive screener.
Fincantieri
Overview: Fincantieri S.p.A. is a global player in the shipbuilding industry with a market capitalization of approximately €3.22 billion.
Operations: The company's revenue segments include Shipbuilding at €5.90 billion, Offshore and Specialized Vessels at €1.28 billion, and Equipment, Systems and Infrastructure at €1.35 billion.
Estimated Discount To Fair Value: 32.2%
Fincantieri is trading at €9.97, significantly below its estimated fair value of €14.72, indicating it may be undervalued based on cash flows. Despite substantial shareholder dilution in the past year, the company is expected to become profitable in three years with earnings forecasted to grow 81.49% annually. Although revenue growth of 8.3% per year is slower than desired, it still surpasses the Italian market average and offers good relative value compared to peers and industry standards.
Atea
Overview: Atea ASA provides IT infrastructure and related solutions for businesses and public sector organizations in the Nordic countries and Baltic regions, with a market cap of NOK15.07 billion.
Operations: The company's revenue segments are comprised of NOK8.80 billion from Norway, NOK12.76 billion from Sweden, NOK7.86 billion from Denmark, NOK3.58 billion from Finland, and NOK1.72 billion from the Baltics, with Group Shared Services contributing an additional NOK10.20 billion.