Estimated Discount To Fair Value: 41.5%

MTU Aero Engines, trading at €245.9, is significantly undervalued by 41.5% relative to its fair value of €420.24, per discounted cash flow metrics. Poised for profitability within three years, MTX anticipates robust earnings growth of 34.94% annually. Recent financials reveal a slight dip in net income from €134 million to €126 million year-over-year despite an increase in sales from €1.54 billion to €1.65 billion in Q1 2024, underscoring potential recovery and growth dynamics against a backdrop of operational challenges.

• Our comprehensive growth report raises the possibility that MTU Aero Engines is poised for substantial financial growth.

• Click here and access our complete balance sheet health report to understand the dynamics of MTU Aero Engines.

Stabilus

Overview: Stabilus SE operates globally, manufacturing and selling gas springs, dampers, vibration isolation products, and electric tailgate equipment with a market cap of approximately €1.11 billion.

Operations: Stabilus generates revenue primarily from three geographical segments: €548.37 million from Europe, the Middle East, and Africa, €465.72 million from the Americas, and €293.73 million from the Asia-Pacific region.

Estimated Discount To Fair Value: 44%

Stabilus SE, priced at €44.8, is significantly undervalued with a fair value of €79.98 based on discounted cash flow analysis, indicating a potential undervaluation by 44%. Despite recent adjustments to its fiscal year 2024 revenue forecasts down to between €1.3 billion and €1.35 billion from previous higher estimates due to weaker demand in key segments, the company's earnings are expected to grow substantially at 20.5% annually over the next three years, outpacing the German market growth rate of 18.9%. However, it faces challenges such as a high debt level and declining profit margins year-over-year from 9.8% to 6%.

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

• Dive into the specifics of Stabilus here with our thorough financial health report.

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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 XTRA:ADS XTRA:MTX and XTRA:STM.

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