Amid a backdrop of fluctuating global markets, the Netherlands' stock market presents unique opportunities for investors looking to explore potentially undervalued assets. As international trade tensions and shifts in economic policies influence market dynamics, understanding the intrinsic value of stocks becomes crucial for those aiming to make informed investment decisions.
Top 5 Undervalued Stocks Based On Cash Flows In The Netherlands
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Majorel Group Luxembourg (ENXTAM:MAJ) | €29.45 | €55.97 | 47.4% |
| Alfen (ENXTAM:ALFEN) | €16.905 | €24.89 | 32.1% |
| Ctac (ENXTAM:CTAC) | €3.08 | €3.83 | 19.5% |
| Arcadis (ENXTAM:ARCAD) | €62.60 | €119.36 | 47.6% |
| Ordina (ENXTAM:ORDI) | €5.70 | €10.64 | 46.4% |
| Envipco Holding (ENXTAM:ENVI) | €5.75 | €6.82 | 15.7% |
We'll examine a selection from our screener results.
Alfen (ENXTAM:ALFEN)
Overview: Alfen N.V. specializes in the design, engineering, development, production, and service of smart grids, energy storage systems, and electric vehicle charging equipment with a market cap of approximately €367.17 million.
Operations: The company generates revenue through three primary segments: Smart Grid Solutions (€188.38 million), Electric Vehicle Charging Equipment (€153.12 million), and Energy Storage Systems (€162.98 million).
Estimated Discount To Fair Value: 32.1%
Alfen, priced at €16.91, shows potential undervaluation based on a discounted cash flow analysis suggesting a fair value of €24.89, marking it 32.1% underpriced. Despite recent downward revisions in 2024 revenue forecasts—from between €485 million to €500 million—its earnings are still expected to grow by 20.1% annually over the next three years, outpacing the Dutch market's growth rate of 18.4%. However, its profit margins have declined from last year's 12.1% to just 5.9%.
- Our growth report here indicates Alfen may be poised for an improving outlook.
- Click here and access our complete balance sheet health report to understand the dynamics of Alfen.
Arcadis (ENXTAM:ARCAD)
Overview: Arcadis NV, a global company headquartered in the Netherlands, provides design, engineering, and consultancy services for natural and built assets across The Americas, Europe, the Middle East, and Asia Pacific with a market capitalization of approximately €5.63 billion.
Operations: Arcadis NV generates revenue from four main segments: Places (€1.94 billion), Mobility (€0.98 billion), Resilience (€1.96 billion), and Intelligence (€0.12 billion).
Estimated Discount To Fair Value: 47.6%
Arcadis, trading at €62.6, is significantly undervalued based on a discounted cash flow valuation that pegs its fair value at €119.36. Recent engagements like leading digital asset management for Henderson highlight growth in intelligent systems and public sector involvement. Despite high debt levels, earnings have grown by 21.6% last year with forecasts suggesting a robust annual increase of 20.48%. However, revenue growth projections remain modest at 1.5% annually, trailing the broader Dutch market's expectation of 10%.
- Insights from our recent growth report point to a promising forecast for Arcadis' business outlook.
- Click to explore a detailed breakdown of our findings in Arcadis' balance sheet health report.
Envipco Holding (ENXTAM:ENVI)
Overview: Envipco Holding N.V. specializes in the design, development, manufacturing, assembly, marketing, sale, leasing, and servicing of reverse vending machines (RVMs) for recycling used beverage containers in the Netherlands, North America, and other parts of Europe with a market capitalization of approximately €331.72 million.
Operations: Envipco Holding N.V. generates its revenue primarily through the design, development, sale, and servicing of reverse vending machines in the Netherlands, North America, and other European regions.
Estimated Discount To Fair Value: 15.7%
Envipco Holding N.V., with a current price of €5.75, appears undervalued against a fair value estimate of €6.82, reflecting potential unrecognized value based on cash flows. Recent financial results show a significant turnaround with first-quarter sales jumping to €27.44 million from €10.41 million year-over-year and shifting from a net loss to a modest profit of €0.147 million. Forecasted revenue and earnings growth are robust at 33.3% and 68.9% per year respectively, outpacing broader market expectations significantly, despite recent shareholder dilution and high share price volatility over the past three months.
- The growth report we've compiled suggests that Envipco Holding's future prospects could be on the up.
- Unlock comprehensive insights into our analysis of Envipco Holding stock in this financial health report.
Taking Advantage
- Discover the full array of 6 Undervalued Euronext Amsterdam Stocks Based On Cash Flows right here.
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Curious About Other Options?
- 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.
Valuation is complex, but we're here to simplify it.
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