Vestas Wind Systems Leads Trio Of Stocks Estimated To Be Below Intrinsic Value

As global markets exhibit a mix of trends with record highs in major indices and nuanced shifts in small-cap stocks, investors are keenly watching for opportunities that may be undervalued relative to their intrinsic worth. In this context, identifying stocks like Vestas Wind Systems that potentially trade below their fundamental value could be particularly compelling amidst the current economic landscape.

Top 10 Undervalued Stocks Based On Cash Flows

Name	Current Price	Fair Value (Est)	Discount (Est)
DXN Holdings Bhd (KLSE:DXN)	MYR0.635	MYR1.26	49.7%
Acerinox (BME:ACX)	€10.00	€19.95	49.9%
Duckhorn Portfolio (NYSE:NAPA)	US$7.19	US$14.30	49.7%
hipages Group Holdings (ASX:HPG)	A$1.04	A$2.06	49.5%
Eletromidia (BOVESPA:ELMD3)	R$18.45	R$36.78	49.8%
Terveystalo Oyj (HLSE:TTALO)	€9.58	€19.00	49.6%
Musti Group Oyj (HLSE:MUSTI)	€26.65	€52.85	49.6%
YIT Oyj (HLSE:YIT)	€2.33	€4.66	50%
Elementis (LSE:ELM)	£1.514	£3.02	49.9%
Vasta Platform (NasdaqGS:VSTA)	US$3.025	US$6.01	49.7%

Click here to see the full list of 951 stocks from our Undervalued Stocks Based On Cash Flows screener.

Let's review some notable picks from our screened stocks.

Vestas Wind Systems (CPSE:VWS)

Overview: Vestas Wind Systems A/S is a global company specializing in the design, manufacture, installation, and servicing of wind turbines, with a market capitalization of approximately DKK 170 billion.

Operations: The company generates revenue primarily through two segments: Power Solutions (€11.57 billion) and Service (€3.66 billion).

Estimated Discount To Fair Value: 30.8%

Vestas Wind Systems, currently priced at DKK168.45, is significantly undervalued by 30.8% against a fair value of DKK243.51 based on discounted cash flow analysis. With earnings projected to grow at 39.09% annually, Vestas is expected to turn profitable within the next three years, outpacing average market growth rates. Recent orders for their advanced turbines in global markets underline its operational expansion and potential revenue increase, although current revenue growth forecasts (11.4% annually) slightly trail behind the desired 20% threshold.

• According our earnings growth report, there's an indication that Vestas Wind Systems might be ready to expand.
• Dive into the specifics of Vestas Wind Systems here with our thorough financial health report.

Jerónimo Martins SGPS (ENXTLS:JMT)

Overview: Jerónimo Martins SGPS, S.A. is a company engaged in food distribution and specialized retail, operating across Portugal, Poland, and Colombia, with a market capitalization of approximately €12.33 billion.

Operations: The company generates revenue primarily through its retail operations in Poland and Colombia, with segments reporting €22.41 billion and €2.65 billion respectively.

Estimated Discount To Fair Value: 41.2%

Jerónimo Martins SGPS, trading at €19.62, is valued 41.2% below its estimated fair value of €33.38, reflecting potential underpricing based on cash flows. Despite a recent dip in net income to €97 million from last year's €140 million and lower EPS of €0.15, the company's revenue growth outpaces the Portuguese market at 7.1% annually compared to 5.2%. Earnings are expected to grow by 8.27% per year with a forecasted high Return on Equity of 24.5% in three years, though its dividend record remains unstable.

• Insights from our recent growth report point to a promising forecast for Jerónimo Martins SGPS' business outlook.
• Navigate through the intricacies of Jerónimo Martins SGPS with our comprehensive financial health report here.

Pantai Indah Kapuk Dua (IDX:PANI)

Overview: PT Pantai Indah Kapuk Dua Tbk, along with its subsidiaries, functions as a property developer in Indonesia with a market capitalization of approximately IDR 87.12 trillion.

Operations: The company's primary revenue of IDR 1.92 billion is generated from its real estate segment.

Estimated Discount To Fair Value: 31.2%

PT Pantai Indah Kapuk Dua Tbk, priced at IDR5575, trades below its fair value of IDR8105.51, suggesting a significant undervaluation based on discounted cash flows. Despite a decrease in sales to IDR 640.36 billion and net income to IDR 122.38 million this quarter from last year's figures, the company is poised for robust future growth with earnings expected to rise by 47.7% annually and revenue forecasted to grow at 29.6% per year—both metrics surpassing market averages significantly.

• In light of our recent growth report, it seems possible that Pantai Indah Kapuk Dua's financial performance will exceed current levels.
• Take a closer look at Pantai Indah Kapuk Dua's balance sheet health here in our report.

Make It Happen

• Reveal the 951 hidden gems among our Undervalued Stocks Based On Cash Flows screener with a single click here.
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Seeking Other Investments?

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• 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.

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