Amidst political turmoil in France and international trade tensions, European markets have experienced a downturn, with the pan-European STOXX Europe 600 Index ending 1.10% lower and major stock indexes losing ground. In this environment of uncertainty and profit-taking, identifying stocks that may be trading at a discount becomes crucial for investors seeking value opportunities.
Top 10 Undervalued Stocks Based On Cash Flows In Europe
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Nexam Chemical Holding (OM:NEXAM) | SEK3.75 | SEK7.47 | 49.8% |
| Mo-BRUK (WSE:MBR) | PLN291.50 | PLN582.11 | 49.9% |
| GomSpace Group (OM:GOMX) | SEK16.68 | SEK32.71 | 49% |
| DSV (CPSE:DSV) | DKK1344.00 | DKK2666.32 | 49.6% |
| doValue (BIT:DOV) | €2.806 | €5.54 | 49.3% |
| DigiTouch (BIT:DGT) | €1.92 | €3.78 | 49.2% |
| Demant (CPSE:DEMANT) | DKK234.00 | DKK460.87 | 49.2% |
| Cicor Technologies (SWX:CICN) | CHF197.00 | CHF390.98 | 49.6% |
| Atea (OB:ATEA) | NOK143.60 | NOK281.37 | 49% |
| Allegro.eu (WSE:ALE) | PLN33.75 | PLN66.39 | 49.2% |
Underneath we present a selection of stocks filtered out by our screen.
DSV (CPSE:DSV)
Overview: DSV A/S provides transport and logistics services across multiple regions including Europe, the Middle East, Africa, North America, South America, Asia, Australia, and the Pacific, with a market cap of DKK316.50 billion.
Operations: The company's revenue segments comprise Road services at DKK50.36 billion, Solutions at DKK29.10 billion, Air Freight within the Air & Sea segment at DKK61.81 billion, and Sea Freight within the Air & Sea segment at DKK55.94 billion.
Estimated Discount To Fair Value: 49.6%
DSV, trading at DKK1344, is significantly undervalued with a fair value estimate of DKK2666.32. Despite high debt levels and a forecasted low return on equity of 12.8% in three years, its earnings are projected to grow by 21.66% annually, outpacing the Danish market's growth rate of 4.1%. Recent earnings reports show strong revenue growth but declining net income and EPS compared to last year, maintaining stable EBIT guidance for 2025 between DKK19.5-21.5 billion.
- Our growth report here indicates DSV may be poised for an improving outlook.
- Delve into the full analysis health report here for a deeper understanding of DSV.
GomSpace Group (OM:GOMX)
Overview: GomSpace Group AB (publ) designs and sells nanosatellites, components, and turnkey satellite solutions globally, with a market cap of SEK2.81 billion.
Operations: GomSpace Group AB generates revenue from manufacturing and selling nanosatellites, satellite components, and comprehensive satellite solutions across various regions including Denmark, Sweden, France, the rest of Europe, the United States, Asia, and other international markets.
Estimated Discount To Fair Value: 49%
GomSpace Group, trading at SEK16.68, is deeply undervalued relative to its fair value of SEK32.71. Despite recent shareholder dilution and negative equity, the company has raised its revenue guidance for 2025 by over SEK100 million and secured a pivotal contract with ESA valued at EUR760,000. Revenue is projected to grow annually by 25.9%, surpassing the Swedish market average, while profitability is expected within three years alongside significant earnings growth forecasts of 115.97% annually.
- The growth report we've compiled suggests that GomSpace Group's future prospects could be on the up.
- Get an in-depth perspective on GomSpace Group's balance sheet by reading our health report here.
Munters Group (OM:MTRS)
Overview: Munters Group AB (publ) offers climate solutions across the Americas, Europe, the Middle East, Africa, and Asia with a market cap of SEK21.50 billion.
Operations: The company's revenue segments are comprised of Air Tech at SEK7.82 billion, Food Tech at SEK3.31 billion, and Data Center Technologies at SEK5.36 billion.
Estimated Discount To Fair Value: 24%
Munters Group is trading at SEK117.8, significantly undervalued compared to its fair value of SEK155.03, with expected annual earnings growth of 21.9%, outpacing the Swedish market. Despite high debt levels, Munters issued a SEK1 billion green bond to fund eco-friendly projects and deepen its strategic partnership with Capsol Technologies through additional investments and collaboration in carbon capture solutions. This positions Munters for potential long-term value creation amidst current financial challenges.
- Insights from our recent growth report point to a promising forecast for Munters Group's business outlook.
- Click here and access our complete balance sheet health report to understand the dynamics of Munters Group.
Summing It All Up
- Take a closer look at our Undervalued European Stocks Based On Cash Flows list of 206 companies by clicking here.
- Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
- Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.
Looking For Alternative Opportunities?
- 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.
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