German Exchange Value Stock Picks For September 2024

In September 2024, the German stock market has shown resilience with the DAX rising by 2.17%, buoyed by an interest rate cut from the European Central Bank amid signs of weakening economic growth and slowing inflation in the eurozone. This environment presents a unique opportunity to explore undervalued stocks that may offer significant potential for investors. Identifying good value stocks involves looking for companies with strong fundamentals that are trading below their intrinsic value, especially in a market where economic indicators suggest cautious optimism.

Top 10 Undervalued Stocks Based On Cash Flows In Germany

Name	Current Price	Fair Value (Est)	Discount (Est)
technotrans (XTRA:TTR1)	€16.15	€31.09	48%
init innovation in traffic systems (XTRA:IXX)	€36.30	€52.78	31.2%
Formycon (XTRA:FYB)	€49.60	€72.30	31.4%
Gerresheimer (XTRA:GXI)	€99.75	€195.80	49.1%
Verbio (XTRA:VBK)	€15.47	€30.18	48.7%
Schweizer Electronic (XTRA:SCE)	€3.88	€7.19	46.1%
MTU Aero Engines (XTRA:MTX)	€276.40	€492.74	43.9%
elumeo (XTRA:ELB)	€2.26	€3.91	42.3%
LPKF Laser & Electronics (XTRA:LPK)	€8.67	€12.50	30.7%
Basler (XTRA:BSL)	€9.24	€14.07	34.3%

Click here to see the full list of 19 stocks from our Undervalued German Stocks Based On Cash Flows screener.

Here's a peek at a few of the choices from the screener.

adidas (XTRA:ADS)

Overview: adidas AG, with a market cap of €39.16 billion, designs, develops, produces, and markets athletic and sports lifestyle products across Europe, the Middle East, Africa, North America, Greater China, the Asia-Pacific region, and Latin America.

Operations: The company's revenue segments include Greater China (€3.26 billion), Latin America (€2.39 billion), and North America (€5.07 billion).

Estimated Discount To Fair Value: 20.7%

adidas is trading 20.7% below its estimated fair value of €276.51, with a current price of €219.3. Recent earnings reports show substantial growth: Q2 sales rose to €5.82 billion from €5.34 billion last year, and net income increased to €190 million from €84 million. Earnings per share also improved significantly, reflecting robust financial health and potential undervaluation based on cash flows despite currency challenges impacting profitability forecasts for 2024.

• Insights from our recent growth report point to a promising forecast for adidas' business outlook.
• Delve into the full analysis health report here for a deeper understanding of adidas.

MTU Aero Engines (XTRA:MTX)

Overview: MTU Aero Engines AG develops, manufactures, markets, and maintains commercial and military aircraft engines as well as aero-derivative industrial gas turbines globally, with a market cap of €14.88 billion.

Operations: The company's revenue segments include €4.45 billion from the Commercial Maintenance Business (MRO) and €1.32 billion from the Commercial and Military Engine Business (OEM).

Estimated Discount To Fair Value: 43.9%

MTU Aero Engines, trading at €276.4, is 43.9% below its estimated fair value of €492.74 and expected to become profitable within three years with a projected earnings growth of 35.06% annually. Recent earnings for H1 2024 show sales rising to €3.39 billion from €3.09 billion and net income increasing to €285 million from €255 million year-over-year, reflecting strong financial performance amidst steady revenue growth forecasts of 12.1% per year.

• Upon reviewing our latest growth report, MTU Aero Engines' projected financial performance appears quite optimistic.
• Get an in-depth perspective on MTU Aero Engines' balance sheet by reading our health report here.

SAP (XTRA:SAP)

Overview: SAP SE, along with its subsidiaries, offers a range of applications, technology solutions, and services on a global scale and has a market cap of approximately €233.21 billion.

Operations: SAP SE's revenue from its Applications, Technology & Services segment is €32.54 billion.

Estimated Discount To Fair Value: 17.1%

SAP, trading at €200.15, is 17.1% below its estimated fair value of €241.47, with revenue forecast to grow 9.9% annually and earnings expected to rise significantly at 37.8% per year over the next three years, outpacing the German market's growth rate. Recent news includes a $60.93 million shelf registration filing and key executive changes impacting its technology leadership and cloud strategy initiatives like GROW With SAP and RISE with SAP solutions for clients like Xerox and Kyndryl.

• According our earnings growth report, there's an indication that SAP might be ready to expand.
• Click here to discover the nuances of SAP with our detailed financial health report.

Seize The Opportunity

• Explore the 19 names from our Undervalued German Stocks Based On Cash Flows screener here.
• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
• Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

Searching for a Fresh Perspective?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com