Stock Analysis

European Value Stocks: STMicroelectronics And Two More Priced Below Estimated Worth

ENXTPA:STMPA
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As European markets experience a boost from strong corporate earnings and optimism surrounding geopolitical tensions, investors are increasingly on the lookout for stocks that are trading below their intrinsic value. In this environment, identifying undervalued stocks like STMicroelectronics can offer potential opportunities for those seeking to capitalize on discrepancies between market price and estimated worth.

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Top 10 Undervalued Stocks Based On Cash Flows In Europe

NameCurrent PriceFair Value (Est)Discount (Est)
Sparebank 68° Nord (OB:SB68)NOK178.50NOK354.4249.6%
Robit Oyj (HLSE:ROBIT)€1.135€2.2549.5%
Pluxee (ENXTPA:PLX)€17.50€34.1248.7%
Norconsult (OB:NORCO)NOK44.70NOK87.6249%
Lingotes Especiales (BME:LGT)€6.00€11.6948.7%
Hanza (OM:HANZA)SEK111.00SEK219.7749.5%
Exel Composites Oyj (HLSE:EXL1V)€0.383€0.7649.6%
Atea (OB:ATEA)NOK141.40NOK282.5149.9%
Aquila Part Prod Com (BVB:AQ)RON1.48RON2.9249.4%
ams-OSRAM (SWX:AMS)CHF10.59CHF20.8349.1%

Click here to see the full list of 193 stocks from our Undervalued European Stocks Based On Cash Flows screener.

Let's explore several standout options from the results in the screener.

STMicroelectronics (ENXTPA:STMPA)

Overview: STMicroelectronics N.V. is a company that designs, develops, manufactures, and sells semiconductor products across Europe, the Middle East, Africa, the Americas, and the Asia Pacific with a market cap of approximately €20.03 billion.

Operations: The company's revenue segments include Power and Discrete Products at $2.76 billion and Analog, MEMS & Sensors Group at $4.22 billion.

Estimated Discount To Fair Value: 42.7%

STMicroelectronics is trading at €22.42, significantly below its estimated fair value of €39.15, suggesting it may be undervalued based on cash flows. Despite a recent net loss of US$97 million in Q2 2025, the company's earnings are forecast to grow substantially at 34.9% annually over the next three years, outpacing the French market's growth rate. Recent strategic moves include acquiring NXP’s MEMS sensors business and expanding capabilities through a license agreement with Metalenz for advanced metasurface optics production.

ENXTPA:STMPA Discounted Cash Flow as at Aug 2025
ENXTPA:STMPA Discounted Cash Flow as at Aug 2025

Lerøy Seafood Group (OB:LSG)

Overview: Lerøy Seafood Group ASA is involved in the production, processing, marketing, sales, and distribution of seafood products and has a market cap of NOK29.46 billion.

Operations: The company's revenue segments include Farming at NOK14.41 billion, Wildcatch at NOK2.61 billion, and VAP, Sales and Distribution at NOK30.66 billion.

Estimated Discount To Fair Value: 47.1%

Lerøy Seafood Group, trading at NOK 49.48, is significantly below its estimated fair value of NOK 93.47, highlighting potential undervaluation based on cash flows. Despite a recent net loss of NOK 383.06 million in Q1 2025, earnings are projected to grow substantially at 30.4% annually over the next three years, surpassing the Norwegian market's growth rate. However, its dividend yield of 5.05% isn't well covered by free cash flows and return on equity remains modestly forecasted at 14.5%.

OB:LSG Discounted Cash Flow as at Aug 2025
OB:LSG Discounted Cash Flow as at Aug 2025

Norconsult (OB:NORCO)

Overview: Norconsult ASA offers consultancy services specializing in community planning, engineering design, and architecture across the Nordics and internationally, with a market cap of NOK13.87 billion.

Operations: The company's revenue segments include Norway Regions (NOK2.93 billion), Norway Head Office (NOK3.14 billion), Sweden (NOK1.90 billion), Digital and Techno-Garden (NOK1.16 billion), Denmark (NOK891 million), and Renewable Energy (NOK947 million).

Estimated Discount To Fair Value: 49%

Norconsult ASA is trading at NOK 44.7, significantly below its estimated fair value of NOK 87.62, suggesting undervaluation based on cash flows. Recent earnings show robust growth with net income rising to NOK 257 million from NOK 103 million a year prior. The company secured major contracts like the NRK media house and Bergen Light Rail projects, enhancing its revenue prospects amidst forecasted annual earnings growth of 12.7%, outpacing the Norwegian market's average growth rate.

OB:NORCO Discounted Cash Flow as at Aug 2025
OB:NORCO Discounted Cash Flow as at Aug 2025

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.

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About ENXTPA:STMPA

STMicroelectronics

Designs, develops, manufactures, and sells semiconductor products in Europe, the Middle East, Africa, the Americas, and the Asia Pacific.

Flawless balance sheet with reasonable growth potential.

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