Most news observers, even casual ones, were aware of two big news stories last week – the pope’s visit to America and Volkswagen’s (VOW, Financial) apparent manipulation of diesel emission results.
German-based Volkswagen is the second-largest automaker in the world; when it has a problem, aftershocks within the auto sector are to be expected. The more severe the problem is, the more severe the aftershocks are, and this problem has been severe enough to force Volkswagen’s CEO to resign.
The resignation of such a high-ranking company official is not an everyday occurrence. Will there be ripple effects for other companies trading in Germany? Are there bargains waiting to be found by investors?
Premium members of GuruFocus can use the All-In-One Screener to detect undervalued stocks in Europe and, to be more specific, which ones are trading in Germany.
To narrow my search to European stocks, I clicked on the box that was labeled Europe. This produced a list of 17 undervalued stocks in the European region. I wanted to narrow it further, to see which ones traded in the German market so I went to the dropdown box listing 19 European countries and selected Germany. That produced two undervalued stocks.
CANCOM SE (XTER:COK, Financial)
Munich-based CANCOM provides information technology services and solutions. Its current price is €31.96 (approximately $35.77 in U.S. currency) per share. It has a Financial Strength rating of 6/10 and a Profitability and Growth rating of 6/10.
CANCOM has a market cap of $475.49 million and an enterprise value of $448.64 million. It has a P/E of 46.5, a P/B of 2.6 and a P/S of 0.6.
Wirecard AG (XSWX:WDI, Financial)
Wirecard is an Aschheim, Germany-based financial services and technology company. It is one of the 30 largest technology companies in Germany. One of its services is an internet payment service.
Wirecard currently sells for €41.48 (about $46.64 in American dollars) per share. It has a Financial Strength rating of 7/10 and a Profitability and Growth rating of 8/10.
Wirecard has a market cap of $4.92 billion and an enterprise value of $4.23 billion. It has a P/E of 41.6, a P/B of 4.6 and a P/S of 7.7.
Neither stock is in the portfolios of the Gurus we track at GuruFocus.
Use the All-in-One Screener page to locate more undervalued stocks trading in Europe. Not a premium member of GuruFocus? Try it free for 7 days.
