Estimated Discount To Fair Value: 40.6%

MTU Aero Engines AG, despite a slight dip in net income and EPS in Q1 2024, remains a compelling case for undervaluation based on cash flows. Currently trading at €249.2, significantly below the estimated fair value of €419.68, it shows potential for substantial appreciation. With expected revenue growth at 12.2% annually—surpassing the German market's 5.2%—and forecasted earnings growth of 35.18% per year, MTU is poised to outperform market expectations in profitability within three years.

• Insights from our recent growth report point to a promising forecast for MTU Aero Engines' business outlook.

• Dive into the specifics of MTU Aero Engines here with our thorough financial health report.

Stabilus

Overview: Stabilus SE operates globally, manufacturing and selling gas springs, dampers, vibration isolation products, and electric tailgate equipment across various continents with a market capitalization of approximately €1.12 billion.

Operations: Stabilus generates revenue primarily from three geographic segments: €548.37 million from Europe, the Middle East, and Africa (EMEA), €465.72 million from the Americas, and €293.73 million from the Asia-Pacific region.

Estimated Discount To Fair Value: 44.1%

Stabilus SE, priced at €45.15, is significantly undervalued with a fair value estimation of €80.82, indicating a potential for substantial price correction. Despite recent adjustments to its FY2024 revenue forecasts down to between €1.3 billion and €1.35 billion due to weaker demand in key segments, the company's long-term earnings growth remains robust at 20.54% annually, outpacing the German market's average. However, concerns include a high debt level and unstable dividends alongside a recent decline in profit margins from 9.8% to 6%.

• In light of our recent growth report, it seems possible that Stabilus' financial performance will exceed current levels.

• Click here to discover the nuances of Stabilus with our detailed financial health report.

Next Steps

• Discover the full array of 29 Undervalued German Stocks Based On Cash Flows right here.

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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.

Companies discussed in this article include XTRA:GXI XTRA:MTX and XTRA:STM.

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