March 2025 European Stock Picks Trading Below Estimated Value

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As the pan-European STOXX Europe 600 Index posts its longest streak of weekly gains since August 2012, driven by encouraging company results and gains in defense stocks, investors are keenly observing opportunities amid mixed economic signals such as varied inflation rates and shrinking German and French economies. In this context, identifying undervalued stocks becomes crucial for investors seeking to capitalize on potential growth; these stocks typically exhibit strong fundamentals or promising future prospects despite trading below their estimated intrinsic value.

Top 10 Undervalued Stocks Based On Cash Flows In Europe

Name

Current Price

Fair Value (Est)

Discount (Est)

Sword Group (ENXTPA:SWP)

€32.70

€63.90

48.8%

Laboratorios Farmaceuticos Rovi (BME:ROVI)

€53.90

€107.22

49.7%

Schoeller-Bleckmann Oilfield Equipment (WBAG:SBO)

€32.00

€62.72

49%

TF Bank (OM:TFBANK)

SEK367.00

SEK717.47

48.8%

Hybrid Software Group (ENXTBR:HYSG)

€3.58

€7.05

49.2%

Tubacex (BME:TUB)

€3.905

€7.64

48.9%

CD Projekt (WSE:CDR)

PLN216.00

PLN428.55

49.6%

Storytel (OM:STORY B)

SEK90.35

SEK177.35

49.1%

Cint Group (OM:CINT)

SEK6.53

SEK12.94

49.5%

u-blox Holding (SWX:UBXN)

CHF72.80

CHF143.72

49.3%

Click here to see the full list of 204 stocks from our Undervalued European Stocks Based On Cash Flows screener.

Underneath we present a selection of stocks filtered out by our screen.

Acerinox

Overview: Acerinox, S.A., along with its subsidiaries, is involved in the manufacturing, processing, and marketing of stainless steel products across Spain, the United States, Africa, Asia, and Europe with a market cap of approximately €2.77 billion.

Operations: The company's revenue is derived from its operations in manufacturing, processing, and marketing stainless steel products across various regions including Spain, the United States, Africa, Asia, and Europe.

Estimated Discount To Fair Value: 23.9%

Acerinox is trading over 20% below its estimated fair value of €14.6, suggesting it may be undervalued based on cash flows. Despite a slight decline in sales to €5.42 billion for 2024, earnings are forecast to grow significantly at 21.9% annually, outpacing the Spanish market's growth rate. However, its dividend yield of 5.58% is not well covered by free cash flows, which could pose sustainability concerns despite strong earnings potential.

BME:ACX Discounted Cash Flow as at Mar 2025
BME:ACX Discounted Cash Flow as at Mar 2025

Tubacex

Overview: Tubacex, S.A., along with its subsidiaries, manufactures and sells stainless steel and nickel tubes both in Spain and internationally, with a market cap of €474.87 million.