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Estimated Discount To Fair Value: 14.6%

Renewi is trading at £6.72, below its estimated fair value of £7.87, reflecting potential undervaluation based on cash flows. Despite a high debt level and declining profit margins (2.5% vs 4.8% last year), earnings are forecast to grow significantly at 21.15% annually over the next three years, outpacing the UK market's growth rate of 14.3%. Recent strategic alliances aim to enhance recycling capabilities, potentially bolstering future financial performance and sustainability efforts.

• Our comprehensive growth report raises the possibility that Renewi is poised for substantial financial growth.

• Take a closer look at Renewi's balance sheet health here in our report.

Sage Group

Overview: The Sage Group plc, with a market cap of £10.32 billion, provides technology solutions and services for small and medium businesses in the United States, the United Kingdom, France, and internationally.

Operations: The company's revenue segments are as follows: £595 million from Europe, £1.01 billion from North America, and £488 million from the United Kingdom & Ireland.

Estimated Discount To Fair Value: 10.7%

Sage Group is trading at £10.33, below its estimated fair value of £11.56, indicating potential undervaluation based on cash flows. Recent revenue growth of 9% in Q3 2024 and a strategic partnership with VoPay to enhance Sage Business Cloud Payroll highlight operational improvements. However, the company carries a high level of debt, and while earnings are forecast to grow at 14.38% annually, this is not considered significant growth.

• Our expertly prepared growth report on Sage Group implies its future financial outlook may be stronger than recent results.

• Unlock comprehensive insights into our analysis of Sage Group stock in this financial health report.

Key Takeaways

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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 LSE:MOON LSE:RWI and LSE:SGE.

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