In February 2025, global markets are experiencing a mix of geopolitical tensions and economic uncertainty, with U.S. stocks facing downward pressure due to concerns about consumer spending and potential new tariffs. Amid this environment, identifying undervalued stocks becomes crucial as investors seek opportunities that may offer resilience or growth potential despite broader market challenges.
Overview: Almirall, S.A. is a biopharmaceutical company focused on the purchase, manufacture, storage, and sale of skin-health medicines across Europe, the Middle East, the United States, Asia, and Africa with a market cap of €2.08 billion.
Operations: Almirall's revenue primarily stems from its activities in the biopharmaceutical sector, specifically through the production and distribution of skin-health medications across various regions including Europe, the Middle East, the United States, Asia, and Africa.
Estimated Discount To Fair Value: 36.8%
Almirall is trading at €9.76, significantly below its estimated fair value of €15.43, indicating potential undervaluation based on cash flows. Recent earnings show a turnaround with net income of €10.15 million compared to a loss last year, and sales growth from €894.52 million to €985.72 million in 2024. The company forecasts 10%-13% sales growth for 2025 and expects profitability within three years, despite slower revenue growth than the broader market expectations.
Overview: Norsk Hydro ASA is involved in global power production, bauxite extraction, alumina refining, aluminium smelting, and recycling activities with a market cap of NOK131.57 billion.
Operations: The company's revenue segments include Hydro Energy (NOK10.59 billion), Hydro Extrusions (NOK75.13 billion), Hydro Metal Markets (NOK81.39 billion), Hydro Aluminium Metal (NOK55.49 billion), and Hydro Bauxite & Alumina (NOK54.22 billion).
Estimated Discount To Fair Value: 34%
Norsk Hydro's current trading price of NOK66.62 is well below its estimated fair value of NOK101.01, highlighting potential undervaluation based on cash flows. The company's earnings are projected to grow significantly at 24.8% annually over the next three years, outpacing the Norwegian market average. Recent news includes a completed share buyback and a partnership with Rio Tinto for carbon capture technology development, reflecting strategic initiatives alongside financial performance improvements such as increased revenue and net income in Q4 2024.
Overview: AtkinsRéalis is an integrated professional services and project management company operating globally, with a market cap of CA$12.40 billion.
Operations: The company's revenue segments include Capital at CA$126.66 million, Nuclear at CA$1.30 billion, LSTK Projects at CA$264.84 million, and a Segment Adjustment of CA$7.67 billion.
Estimated Discount To Fair Value: 21%
AtkinsRéalis Group's current price of CA$71.07 is significantly below its estimated fair value of CA$89.92, indicating potential undervaluation based on cash flows. Earnings are forecast to grow substantially at 27% annually, surpassing the Canadian market average. Recent strategic wins include a major digital systems contract with Network Rail and a joint venture for nuclear refurbishment with Ontario Power Generation, enhancing its project backlog and demonstrating robust operational capabilities in key sectors.
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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 BME:ALM OB:NHY and TSX:ATRL.
