Stock Analysis

Exploring Paul Hartmann And 2 Other Undiscovered Gems With Solid Fundamentals

XTRA:MUB
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As global markets experience heightened volatility due to escalating Middle East tensions and economic uncertainties, the German market has not been immune, with the DAX index recently experiencing a notable decline. In this environment of caution and shifting investor sentiment, identifying stocks with solid fundamentals becomes crucial for navigating potential opportunities.

Top 10 Undiscovered Gems With Strong Fundamentals In Germany

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
Mineralbrunnen Überkingen-Teinach GmbH KGaA19.91%0.96%-5.02%★★★★★★
WestagNA-1.56%-21.68%★★★★★★
FRoSTA8.18%4.36%16.00%★★★★★★
Mühlbauer HoldingNA10.49%-12.73%★★★★★★
Paul Hartmann26.29%1.12%-17.65%★★★★★☆
EnviTec Biogas48.48%20.85%46.34%★★★★★☆
HOMAG GroupNA-31.14%23.43%★★★★★☆
Baader Bank91.28%12.42%-8.00%★★★★★☆
DFV Deutsche FamilienversicherungNA19.63%62.92%★★★★★☆
Wilson64.79%30.09%68.29%★★★★☆☆

Click here to see the full list of 56 stocks from our German Undiscovered Gems With Strong Fundamentals screener.

Let's uncover some gems from our specialized screener.

Paul Hartmann (DB:PHH2)

Simply Wall St Value Rating: ★★★★★☆

Overview: Paul Hartmann AG is a company that manufactures and sells medical and care products across Germany, the rest of Europe, the Middle East, Africa, Asia-Pacific, and the Americas with a market cap of approximately €721 million.

Operations: Paul Hartmann AG generates revenue primarily from its Incontinence Management segment (€769.70 million), followed by Wound Care (€597.39 million) and Infection Management (€516.66 million). The Complementary divisions contribute €499.70 million to the overall revenue stream.

Paul Hartmann, a notable player in the medical equipment sector, has seen its earnings soar by 156% over the past year, outpacing industry growth of 16%. Despite an increase in debt to equity from 12% to 26.3% over five years, its interest payments are comfortably covered with EBIT at 6.2x coverage. The company is trading significantly below estimated fair value and reported net income of €42.8 million for the first half of 2024, up from €11.69 million last year.

DB:PHH2 Earnings and Revenue Growth as at Oct 2024
DB:PHH2 Earnings and Revenue Growth as at Oct 2024

MLP (XTRA:MLP)

Simply Wall St Value Rating: ★★★★★★

Overview: MLP SE, with a market cap of €654.69 million, operates in Germany offering financial services to private, corporate, and institutional clients through its subsidiaries.

Operations: MLP SE generates revenue through several segments, with Financial Consulting contributing €429.61 million and FERI adding €231.23 million. Banking services account for €206.97 million, while DOMCURA brings in €129.26 million. The company also reports a negative consolidation impact of -€86.32 million on its overall financials.

MLP, a financial services player in Germany, is catching attention with its robust performance. The company posted a net income of €10.31 million for Q2 2024, up from €2.39 million the previous year, showcasing strong earnings growth of 28.4% over the past year. Trading at 42.6% below estimated fair value and debt-free for five years, MLP offers an appealing valuation proposition. With raised EBIT guidance between €85 million to €95 million for 2024, it signals confidence in future profitability.

XTRA:MLP Debt to Equity as at Oct 2024
XTRA:MLP Debt to Equity as at Oct 2024

Mühlbauer Holding (XTRA:MUB)

Simply Wall St Value Rating: ★★★★★★

Overview: Mühlbauer Holding AG specializes in the production and personalization of smart cards, passports, solar cells, and RFID solutions across various global markets with a market capitalization of approximately €644.31 million.

Operations: Mühlbauer's revenue is primarily driven by its Automation segment, generating €230.92 million, followed by Tecurity® at €171.70 million and Precision Parts & Systems contributing €53.76 million. The company's financial performance reflects a diverse revenue model across these segments.

Mühlbauer, a debt-free player in the machinery sector, has shown impressive earnings growth of 174.9% over the past year, outpacing its industry despite a 12.7% annual decline over five years. Recent reports indicate sales of €210 million for the first half of 2024, slightly down from last year's €213 million. However, net income dropped significantly to €4.66 million from €21 million previously, with basic earnings per share at €0.33 compared to last year's €1.52.

XTRA:MUB Debt to Equity as at Oct 2024
XTRA:MUB Debt to Equity as at Oct 2024

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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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