Amidst a backdrop of mixed performances across global markets, the Euronext Amsterdam presents intriguing opportunities as investors increasingly turn their focus towards value stocks. This shift is particularly relevant in today's market environment, where discerning investors look for stocks that appear undervalued relative to their intrinsic worth—a strategy that could be prudent given the current economic landscape.

Top 5 Undervalued Stocks Based On Cash Flows In The Netherlands

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

We're going to check out a few of the best picks from our screener tool.

Alfen

Overview: Alfen N.V. specializes in smart grids, energy storage systems, and electric vehicle charging equipment, with a market capitalization of approximately €0.36 billion.

Operations: Alfen N.V. generates revenue from 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: 33%

Alfen, priced at €16.7, is trading 33% below its estimated fair value of €24.93, highlighting its potential as an undervalued stock based on cash flows in the Netherlands. Despite recent downward revisions in revenue guidance for 2024 from a range of €590 million to €660 million down to €485 million to €500 million, Alfen's earnings are forecasted to grow by 20.09% annually. However, it faces challenges with highly volatile share prices and lower profit margins compared to the previous year.

• Insights from our recent growth report point to a promising forecast for Alfen's business outlook.

• Click to explore a detailed breakdown of our findings in Alfen's balance sheet health report.

Arcadis

Overview: Arcadis NV, operating in The Americas, Europe, the Middle East, and Asia Pacific, provides design, engineering, and consultancy solutions for natural and built assets with a market capitalization of approximately €5.69 billion.

Operations: The company generates revenue through four key segments: Places (€1.94 billion), Mobility (€0.98 billion), Resilience (€1.96 billion), and Intelligence (€0.12 billion).

Estimated Discount To Fair Value: 47%

Arcadis, valued at €63.25, is significantly undervalued with a fair value estimate of €119.42, reflecting more than 20% underpricing based on cash flows. Recent earnings show robust growth with net income rising to €112 million from €69 million year-over-year and an EPS increase from €0.77 to €1.24, indicating strong operational performance. Despite this, revenue growth projections are modest at 1.3% annually, lagging behind the Dutch market forecast of 10%. Arcadis also carries a high level of debt which may concern investors looking for financial stability.