German Exchange's Top 3 Value Picks For September 2024
In This Article:
The German market has shown resilience, with the DAX rising 2.17% following the European Central Bank's recent rate cut aimed at stimulating economic growth amid slowing inflation. As investors navigate these conditions, identifying undervalued stocks becomes crucial for capitalizing on potential market opportunities. In this context, a good stock is often characterized by strong fundamentals and a price that does not fully reflect its intrinsic value, offering significant upside potential in an evolving economic landscape.
Top 10 Undervalued Stocks Based On Cash Flows In Germany
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| technotrans (XTRA:TTR1) | €20.00 | €31.80 | 37.1% |
| init innovation in traffic systems (XTRA:IXX) | €36.60 | €52.83 | 30.7% |
| Formycon (XTRA:FYB) | €50.40 | €71.85 | 29.9% |
| Gerresheimer (XTRA:GXI) | €101.80 | €196.05 | 48.1% |
| Schweizer Electronic (XTRA:SCE) | €3.72 | €7.19 | 48.3% |
| Verbio (XTRA:VBK) | €15.60 | €29.95 | 47.9% |
| elumeo (XTRA:ELB) | €2.12 | €3.87 | 45.2% |
| MTU Aero Engines (XTRA:MTX) | €276.30 | €491.30 | 43.8% |
| Vectron Systems (XTRA:V3S) | €11.70 | €17.32 | 32.5% |
| Basler (XTRA:BSL) | €9.53 | €14.10 | 32.4% |
Let's review some notable picks from our screened stocks.
adidas
Overview: adidas AG, with a market cap of €40.55 billion, designs, develops, produces, and markets athletic and sports lifestyle products across Europe, the Middle East, Africa, North America, Greater China, the Asia-Pacific region, and Latin America.
Operations: The company's revenue segments include €3.26 billion from Greater China, €2.39 billion from Latin America, and €5.07 billion from North America.
Estimated Discount To Fair Value: 17.8%
adidas is trading 17.8% below its estimated fair value of €276.18, with a current price of €227.1, indicating it may be undervalued based on cash flows. The company has shown strong earnings growth, reporting net income of €190 million for Q2 2024 compared to €84 million a year ago and raising its full-year guidance due to better-than-expected performance. Earnings are forecast to grow significantly at 41.82% per year over the next three years.
Stemmer Imaging
Overview: Stemmer Imaging AG provides machine vision technology for various applications globally and has a market cap of €318.50 million.
Operations: Stemmer Imaging generates €126.23 million in revenue from its machine vision technology segment.