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Operations: Stadler Rail's revenue is primarily derived from its Rolling Stock segment at CHF3.10 billion, followed by Service & Components at CHF789.41 million, and Signalling at CHF135.68 million.

Estimated Discount To Fair Value: 44.7%

Stadler Rail, trading at CHF20.45, is undervalued with a fair value estimate of CHF37. Its earnings are forecast to grow significantly at 22.9% annually, outpacing the Swiss market's 11.2%. Revenue is expected to increase by 5.7% per year, surpassing the broader market growth rate of 4.4%. However, its dividend yield of 4.4% lacks coverage from free cash flows and return on equity is projected to be low in three years (18.8%).

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

• Unlock comprehensive insights into our analysis of Stadler Rail stock in this financial health report.

Gerresheimer

Overview: Gerresheimer AG, with a market cap of €2.24 billion, manufactures and sells medicine packaging, drug delivery devices, and solutions both in Germany and internationally.

Operations: The company's revenue is primarily derived from its Plastics & Devices segment, which accounts for €1.13 billion, followed by the Primary Packaging Glass segment at €885.56 million, and a smaller contribution from Advanced Technologies at €5.83 million.

Estimated Discount To Fair Value: 41.6%

Gerresheimer, priced at €66.65, is significantly undervalued with a fair value estimate of €114.15. Its earnings are projected to grow 21.8% annually, exceeding the German market's growth rate of 20.2%. Revenue is expected to rise by 9.4% per year, outpacing the broader market's growth of 5.7%. Despite high debt levels and a low forecasted return on equity (13.4%), its innovative product developments highlight potential future cash flow improvements.

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

• Dive into the specifics of Gerresheimer here with our thorough financial health report.

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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 IBSE:ARCLK SWX:SRAIL and XTRA:GXI.

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