Undervalued Stocks On Euronext Amsterdam Featuring Alfen And 2 More

The Dutch stock market, much like other European indices, has faced headwinds recently due to weak U.S. economic data and concerns about global growth. Despite these challenges, opportunities arise for investors seeking undervalued stocks on Euronext Amsterdam. Identifying a good stock in such conditions often involves looking for companies with strong fundamentals that are temporarily mispriced by the market.

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)	€14.86	€27.47	45.9%
Ctac (ENXTAM:CTAC)	€3.00	€4.35	31%
ASML Holding (ENXTAM:ASML)	€737.10	€875.94	15.9%
Envipco Holding (ENXTAM:ENVI)	€5.40	€7.67	29.6%
Ordina (ENXTAM:ORDI)	€5.70	€10.64	46.4%

Click here to see the full list of 6 stocks from our Undervalued Euronext Amsterdam Stocks Based On Cash Flows screener.

Let's dive into some prime choices out of the screener.

Alfen (ENXTAM:ALFEN)

Overview: Alfen N.V., with a market cap of €322.75 million, operates through its subsidiaries to design, engineer, develop, produce, and service smart grids, energy storage systems, and electric vehicle charging equipment.

Operations: The company's revenue segments are Smart Grid Solutions (€188.38 million), EV Charging Equipment (€153.12 million), and Energy Storage Systems (€162.98 million).

Estimated Discount To Fair Value: 45.9%

Alfen N.V. appears undervalued based on cash flows, trading at €14.86, significantly below its estimated fair value of €27.47. Despite recent guidance lowering 2024 revenue expectations to €485-500 million, Alfen's earnings are forecast to grow at 20.09% annually, outpacing the Dutch market's 19.2%. However, the company has experienced high share price volatility and declining profit margins from 12.1% to 5.9% over the past year, indicating some risks despite its attractive valuation metrics relative to peers and industry standards.

• The growth report we've compiled suggests that Alfen's future prospects could be on the up.
• Get an in-depth perspective on Alfen's balance sheet by reading our health report here.

ASML Holding (ENXTAM:ASML)

Overview: ASML Holding N.V. develops, produces, markets, sells, and services advanced semiconductor equipment systems for chipmakers and has a market cap of €289.83 billion.

Operations: The company's revenue is primarily derived from its Semiconductor Equipment and Services segment, which generated €25.44 billion.

Estimated Discount To Fair Value: 15.9%

ASML Holding is trading at €737.1, below its estimated fair value of €875.94, indicating it may be undervalued based on cash flows. Despite recent earnings declines—Q2 2024 revenue was €6.24 billion compared to €6.90 billion a year ago—the company expects higher sales in the second half of 2024 and has reaffirmed full-year guidance. With forecasted annual profit growth of 23.1% and strong return on equity projections, ASML shows potential despite share price volatility and slower revenue growth rates than desired benchmarks.

• Our growth report here indicates ASML Holding may be poised for an improving outlook.
• Unlock comprehensive insights into our analysis of ASML Holding stock in this financial health report.

Envipco Holding (ENXTAM:ENVI)

Overview: Envipco Holding N.V., with a market cap of €311.53 million, designs, develops, manufactures, assembles, markets, sells, leases, and services reverse vending machines to collect and process used beverage containers primarily in the Netherlands, North America, and the rest of Europe.

Operations: Envipco Holding generates revenue through the design, development, manufacturing, assembly, marketing, sales, leasing, and servicing of reverse vending machines for collecting and processing used beverage containers in the Netherlands, North America, and Europe.

Estimated Discount To Fair Value: 29.6%

Envipco Holding, trading at €5.4, is significantly undervalued compared to its estimated fair value of €7.67. The company reported a substantial increase in Q1 2024 sales (€27.44 million vs €10.41 million) and turned profitable with net income of €0.147 million from a prior net loss of €2.57 million. Despite recent shareholder dilution and share price volatility, Envipco's earnings are forecast to grow 68.9% annually, outpacing the Dutch market average growth rate of 19.2%.

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

Summing It All Up

• Get an in-depth perspective on all 6 Undervalued Euronext Amsterdam Stocks Based On Cash Flows by using our screener here.
• Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance.
• Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

Interested In Other Possibilities?

• 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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