Valuations have become more attractive due to the recent correction in share prices
Several listed companies have already laid the groundwork for a solid performance in 2025 with the results they announced for the first half of the year.
In fact, following the recent correction in share prices, valuations have become significantly more appealing.
Taking a second look at the published results, and starting with large-cap stocks (excluding banks), we can observe the following.
The picture among large caps
Coca-Cola HBC, despite not upgrading its guidance — which led to a notable correction in its share price — posted profits of €470.6 million in the first half. This sets the stage for a P/E ratio below 15 times, as net profits are expected to come in just under €1 billion for the full year.
Metlen, with net profits of €253 million, is on track to reach its target of €600 million, which would translate to a P/E ratio of 11 times for 2025.
OPAP, with net profits of €233.4 million, is expected to surpass €500 million this year, resulting in a P/E ratio of 14.3 times.
Motor Oil also appears attractively valued based on its estimated 2025 earnings. Adjusted net profits for the first half stood at €213 million, and given that the third quarter is traditionally strong due to tourism — with refining margins also improving — a single-digit P/E ratio is almost a given.
A low P/E is also expected for ElvalHalcor, which reported profits of €70.8 million, as well as for its parent company, Viohalco.
The picture among mid and small caps
Piraeus Port Authority (OLP) reported profits of €46.7 million, up 15.5%, and tariff increases are expected to further improve earnings in the coming quarters.
The share has also corrected from its highs, meaning it is likely to maintain a low P/E ratio; not to mention its strong cash position.
Karelia, despite the hit from foreign exchange losses, will once again have a low P/E ratio; and if its roughly €820 million in net cash is factored in, the stock looks almost free.
IPTO (Independent Power Transmission Operator - ADMIE), despite a decline in profitability to €34.1 million, only needs a moderate to good performance in the second half to once again appear undervalued.
Avax looks set for a single-digit P/E ratio, with net profits of €28 million in the first half and a market capitalization of €350 million.
A similar picture is expected for the Thessaloniki Port Authority (OLTH), which reported net profits of €15.9 million in the first half and has a market cap of €360 million, plus a net cash position of €117.8 million.
Interlife, even if it posts no profit in the second half, will maintain a single-digit P/E ratio, given its six-month profitability of €10.8 million.
Alumil is also a likely candidate for a single-digit P/E if its strong first-half performance continues.
Hellenic Exchanges (ATHEX) appears cheap compared to Euronext’s valuation, although its share price has been moving in tandem with Euronext due to the public offer.
Mevaco needs only a modest increase in profits in the second half to achieve a single-digit P/E, despite its impressive rally on the board.
EKTER improved its adjusted earnings to €4.5 million, and with the contribution of profits from its hotel business in the second half, a low P/E ratio should be considered a given.
Petropoulos will also maintain a low P/E ratio, as it was already low.
Evrofarma delivered strong profitability and could also show an appealing P/E ratio for the full year.
Medicon, with half-year profits of €793,000, only needs a small push to achieve a single-digit P/E.
Note: There are, of course, several other companies expected to post strong second-half results, which will also make them appear undervalued.
www.bankingnews.gr
In fact, following the recent correction in share prices, valuations have become significantly more appealing.
Taking a second look at the published results, and starting with large-cap stocks (excluding banks), we can observe the following.
The picture among large caps
Coca-Cola HBC, despite not upgrading its guidance — which led to a notable correction in its share price — posted profits of €470.6 million in the first half. This sets the stage for a P/E ratio below 15 times, as net profits are expected to come in just under €1 billion for the full year.
Metlen, with net profits of €253 million, is on track to reach its target of €600 million, which would translate to a P/E ratio of 11 times for 2025.
OPAP, with net profits of €233.4 million, is expected to surpass €500 million this year, resulting in a P/E ratio of 14.3 times.
Motor Oil also appears attractively valued based on its estimated 2025 earnings. Adjusted net profits for the first half stood at €213 million, and given that the third quarter is traditionally strong due to tourism — with refining margins also improving — a single-digit P/E ratio is almost a given.
A low P/E is also expected for ElvalHalcor, which reported profits of €70.8 million, as well as for its parent company, Viohalco.
The picture among mid and small caps
Piraeus Port Authority (OLP) reported profits of €46.7 million, up 15.5%, and tariff increases are expected to further improve earnings in the coming quarters.
The share has also corrected from its highs, meaning it is likely to maintain a low P/E ratio; not to mention its strong cash position.
Karelia, despite the hit from foreign exchange losses, will once again have a low P/E ratio; and if its roughly €820 million in net cash is factored in, the stock looks almost free.
IPTO (Independent Power Transmission Operator - ADMIE), despite a decline in profitability to €34.1 million, only needs a moderate to good performance in the second half to once again appear undervalued.
Avax looks set for a single-digit P/E ratio, with net profits of €28 million in the first half and a market capitalization of €350 million.
A similar picture is expected for the Thessaloniki Port Authority (OLTH), which reported net profits of €15.9 million in the first half and has a market cap of €360 million, plus a net cash position of €117.8 million.
Interlife, even if it posts no profit in the second half, will maintain a single-digit P/E ratio, given its six-month profitability of €10.8 million.
Alumil is also a likely candidate for a single-digit P/E if its strong first-half performance continues.
Hellenic Exchanges (ATHEX) appears cheap compared to Euronext’s valuation, although its share price has been moving in tandem with Euronext due to the public offer.
Mevaco needs only a modest increase in profits in the second half to achieve a single-digit P/E, despite its impressive rally on the board.
EKTER improved its adjusted earnings to €4.5 million, and with the contribution of profits from its hotel business in the second half, a low P/E ratio should be considered a given.
Petropoulos will also maintain a low P/E ratio, as it was already low.
Evrofarma delivered strong profitability and could also show an appealing P/E ratio for the full year.
Medicon, with half-year profits of €793,000, only needs a small push to achieve a single-digit P/E.
Note: There are, of course, several other companies expected to post strong second-half results, which will also make them appear undervalued.
www.bankingnews.gr
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