As global markets navigate through a period of broad-based gains, with U.S. indexes approaching record highs despite geopolitical tensions and policy uncertainties, investors are keenly focused on identifying opportunities amidst the prevailing optimism. In this context, undervalued stocks present a compelling option for those looking to capitalize on potential discrepancies between current market prices and intrinsic value, especially as economic indicators such as strong labor markets and rising home sales bolster positive sentiment.
Overview: Antin Infrastructure Partners SAS is a private equity firm that specializes in infrastructure investments, with a market cap of approximately €1.82 billion.
Operations: The company generates revenue primarily from its asset management segment, totaling €291.66 million.
Estimated Discount To Fair Value: 32.1%
Antin Infrastructure Partners SAS is currently trading at €10.18, significantly undervalued compared to its estimated fair value of €15. Despite a robust earnings growth of 472.1% over the past year and forecasted annual profit growth of 21.3%, the dividend yield of 7.17% isn't well covered by earnings or free cash flows. Recent strategic focus includes potential M&A activities to enhance shareholder value, although it was recently removed from the S&P Global BMI Index.
Overview: Tikehau Capital is an alternative asset management group with €46.1 billion in assets under management and a market capitalization of approximately €3.61 billion.
Operations: The company's revenue segments include €173.11 million from investment activities and €322.94 million from asset management activities.
Estimated Discount To Fair Value: 28.9%
Tikehau Capital is trading at €21, considerably below its estimated fair value of €29.55, indicating potential undervaluation based on cash flows. Earnings grew by 41.2% last year and are expected to increase significantly at 43.2% annually over the next three years, outpacing the French market's growth rate. However, the dividend yield of 3.57% isn't well covered by free cash flows, and debt coverage from operating cash flow remains inadequate despite strong revenue forecasts.
Overview: Fortnox AB (publ) offers financial and administrative software solutions for small and medium-sized businesses, accounting firms, and organizations, with a market cap of SEK41.23 billion.
Operations: The company generates revenue from several segments, including Core Products (SEK768 million), Businesses (SEK397 million), Accounting Firms (SEK376 million), Marketplaces (SEK173 million), and Financial Services (SEK267 million).
Estimated Discount To Fair Value: 14.5%
Fortnox AB is trading at SEK 67.6, below the estimated fair value of SEK 79.08, reflecting potential undervaluation based on cash flows. The company reported a rise in earnings and revenue for Q3 2024, with net income reaching SEK 189 million. Earnings are expected to grow significantly at 22.5% annually over the next three years, surpassing the Swedish market's growth rate of 15%.
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 ENXTPA:ANTIN ENXTPA:TKO and OM:FNOX.
