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March 2025's European Stock Picks For Potential Value Opportunities

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As European markets navigate the challenges of U.S. trade policy uncertainties and mixed economic signals, the pan-European STOXX Europe 600 Index recently snapped a 10-week streak of gains, reflecting cautious investor sentiment. In this environment, identifying undervalued stocks can offer potential value opportunities, as investors seek equities that may be poised to benefit from strategic shifts in defense and infrastructure spending within Europe.

Top 10 Undervalued Stocks Based On Cash Flows In Europe

Name

Current Price

Fair Value (Est)

Discount (Est)

Vimi Fasteners (BIT:VIM)

€0.965

€1.91

49.4%

Airbus (ENXTPA:AIR)

€162.22

€319.10

49.2%

CTT Systems (OM:CTT)

SEK227.00

SEK443.38

48.8%

Theon International (ENXTAM:THEON)

€18.94

€36.98

48.8%

Hybrid Software Group (ENXTBR:HYSG)

€3.68

€7.08

48%

Vestas Wind Systems (CPSE:VWS)

DKK104.25

DKK201.77

48.3%

Canatu Oyj (HLSE:CANATU)

€12.00

€23.26

48.4%

Cint Group (OM:CINT)

SEK6.77

SEK13.12

48.4%

Groupe Airwell Société anonyme (ENXTPA:ALAIR)

€1.18

€2.30

48.6%

Fodelia Oyj (HLSE:FODELIA)

€7.18

€13.91

48.4%

Click here to see the full list of 203 stocks from our Undervalued European Stocks Based On Cash Flows screener.

Let's review some notable picks from our screened stocks.

Covivio

Overview: Covivio is a European real estate company focused on enhancing user experiences and designing future urban spaces, with a market cap of approximately €5.48 billion.

Operations: Covivio's revenue is primarily derived from its European real estate operations, with €115.40 million from Italy Offices, €182.80 million from France Offices, €43.30 million from Germany Offices, €265.20 million from Hotels in Europe, and €280.40 million from German Residential properties (excluding offices).

Estimated Discount To Fair Value: 12.5%

Covivio's current trading price of €49.48 is below its estimated fair value of €56.53, indicating it might be undervalued based on discounted cash flows. The company recently returned to profitability with a net income of €68.1 million for 2024, reversing a significant loss from the previous year. While its operating cash flow does not fully cover debt, earnings are expected to grow significantly at 41.9% annually over the next three years, outpacing the French market growth rate.

ENXTPA:COV Discounted Cash Flow as at Mar 2025
ENXTPA:COV Discounted Cash Flow as at Mar 2025

Vår Energi

Overview: Vår Energi AS is an independent upstream oil and gas company operating on the Norwegian continental shelf, with a market cap of NOK79.04 billion.