In This Article:
As European markets navigate the complexities of U.S. trade tariffs and fluctuating monetary policies, the pan-European STOXX Europe 600 Index recently experienced a slight decline, reflecting broader economic uncertainties. In this environment, identifying stocks that are trading below their fair value can offer potential opportunities for investors seeking to capitalize on market inefficiencies.
Top 10 Undervalued Stocks Based On Cash Flows In Europe
Name | Current Price | Fair Value (Est) | Discount (Est) |
Absolent Air Care Group (OM:ABSO) | SEK258.00 | SEK511.18 | 49.5% |
Telefonaktiebolaget LM Ericsson (OM:ERIC B) | SEK83.46 | SEK164.57 | 49.3% |
Gesco (XTRA:GSC1) | €16.10 | €31.37 | 48.7% |
JOST Werke (XTRA:JST) | €51.00 | €98.68 | 48.3% |
Storytel (OM:STORY B) | SEK91.45 | SEK179.85 | 49.2% |
Star7 (BIT:STAR7) | €6.30 | €12.40 | 49.2% |
dormakaba Holding (SWX:DOKA) | CHF691.00 | CHF1359.06 | 49.2% |
Neosperience (BIT:NSP) | €0.538 | €1.06 | 49.2% |
Cint Group (OM:CINT) | SEK6.635 | SEK12.90 | 48.6% |
MilDef Group (OM:MILDEF) | SEK207.50 | SEK404.50 | 48.7% |
Let's uncover some gems from our specialized screener.
Kalmar Oyj
Overview: Kalmar Oyj specializes in providing cargo handling equipment and automated terminal solutions for ports, terminals, distribution centers, and heavy industry, with a market cap of €2.24 billion.
Operations: Kalmar Oyj generates revenue through its Services segment, contributing €560 million, and its Equipment segment, which accounts for €1.16 billion.
Estimated Discount To Fair Value: 40.7%
Kalmar Oyj is trading at €34.95, significantly below its estimated fair value of €58.99, suggesting it may be undervalued based on cash flows. Recent agreements, such as the modernization of straddle carriers for APM Terminals and the launch of the OT2 EV Electric Terminal Tractor, highlight strategic growth initiatives. Although revenue and earnings are projected to grow moderately at 4.2% and 13.1% annually respectively, they surpass Finnish market averages, indicating potential upside in operational performance.
Vimian Group
Overview: Vimian Group AB (publ) operates in the animal health industry globally and has a market capitalization of SEK19.86 billion.
Operations: The company's revenue is derived from four main segments: Medtech (€123.90 million), Diagnostics (€20.90 million), Specialty Pharma (€172 million), and Veterinary Services (€58.20 million).