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This article first appeared on GuruFocus.

Release Date: April 29, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Cellnex Telecom SA (CLNXF) reported a strong start to 2026 with a 4.7% year-on-year growth in POPs, indicating sustained demand from customers. The company achieved a 6.4% increase in adjusted EBITDA and a 7.2% rise in EBITDA after lease, with margin expansion from 58.8% to 60.5%. Recurrent levered free cash flow grew by 12.2%, with a per-share increase of 18% due to organic growth and a share buyback program. Cellnex Telecom SA (CLNXF) successfully executed asset rotation, cashing in $373 million from the disposal of a French data center and $170 million from the DIV2 fund participation. The company maintained a robust liquidity position with approximately $6 billion, including $3 billion in cash and $3 billion in undrawn revolving credit facilities.

Negative Points

The macroeconomic environment remains volatile, posing challenges for Cellnex Telecom SA (CLNXF) despite its strategic execution. There are ongoing complexities in the M&A consolidation process in France, particularly with the SFR process, which is expected to be a multi-year journey. The company faces potential risks from regulatory and commercial processes in France, which could impact future operations. Cellnex Telecom SA (CLNXF) is dealing with a commercial dispute in Italy, which, although not directly affecting them, highlights potential market uncertainties. The company anticipates a more normalized situation in Spain regarding co-location trends, with no significant peaks expected in the near term.

Q & A Highlights

Warning! GuruFocus has detected 7 Warning Signs with CLNXF. Is CLNXF fairly valued? Test your thesis with our free DCF calculator.

Q: Can you provide an update on the discussions regarding the SFR networks in France and how Cellnex is involved in potential synergy talks? A: Marco Patuano, CEO: The situation in France is becoming clearer, and the consortium is working on a comprehensive offer. Our Master Service Agreement (MSA) is clear, and any changes require our consent. We are cooperating and working with CTOs to understand overlaps and potential agreements, but no formal negotiations are underway yet.

Q: Regarding the UK market, with the Vodafone 3 network integration, do you see competitors planning to bridge the site count gap? A: Marco Patuano, CEO: Vodafone is optimizing network integration and addressing remedies from the CMA. This is putting pressure on other operators, who are analyzing how to respond technologically. We are observing progress and will keep you updated.

Story Continues

Q: Can you elaborate on the co-location trends in Spain, especially with the MergeCo's reconfiguration? A: Raimond Riege, CFO: We expect a more normalized situation in Spain this year, with continued deployment of rural 5G and build-to-suit projects. Co-location is expected to remain consistent without significant peaks like last year's DG sharing.

Q: Is there any truth to the rumors about restarting the Swiss sale process? A: Marco Patuano, CEO: We do not comment on press rumors. Our stance is simple: if the price is right, we will consider a deal; otherwise, we won't.

Q: How does the change from an asset deal to a share deal in France affect Cellnex's position? A: Marco Patuano, CEO: A share deal is mildly better as it allows more time to work on asset reallocation. Legally, it doesn't change our contracts, but it simplifies procedural aspects.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

This article first appeared on GuruFocus.

Revenue Growth: Organic revenue increased by 5.8% year-on-year. EBITDA Growth: EBITDA grew by 7.1%, with EBITDA after leases increasing by 7.9%. EBITDA Margin: Increased by 300 basis points to 62.1%. Recurring Levered Free Cash Flow: Grew by 11.5%, with a per share increase of 16.7%. Free Cash Flow: Reached EUR350 million. Net Debt to EBITDA: Improved to 6.28 times from 6.39 times in 2024. Shareholder Returns: EUR1 billion returned through share buybacks, representing a 4.5% yield. Bond Issuance: Issued EUR1.5 billion in bonds at a 3.4% pricing. Fiber and Connectivity Revenue: Increased by 16%. Broadcasting Revenue Growth: 1.9% year-on-year increase.

Warning! GuruFocus has detected 10 Warning Signs with CLNXF. Is CLNXF fairly valued? Test your thesis with our free DCF calculator.

Release Date: February 27, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Cellnex Telecom SA (CLNXF) successfully delivered on its 2025 guidance and reiterated its 2027 outlook, showcasing the resilience and predictability of its business model. The company returned EUR1 billion to shareholders through share buybacks, achieving this milestone a year ahead of schedule, and initiated dividend payments as committed. Cellnex Telecom SA (CLNXF) reported strong organic growth with revenues increasing by 5.8%, EBITDA by 7.1%, and EBITDA after leases by 7.9%, alongside a 1.6 percentage point increase in margin. The company completed the disposal of its French Data Center business, allowing it to focus more on core telecom infrastructure assets. Cellnex Telecom SA (CLNXF) issued a EUR1.5 billion bond in 2026 to extend maturities and secure favorable pricing, demonstrating proactive financial management.

Negative Points

Despite reducing leverage from 6.39 times in 2024 to 6.28 times in 2025, the company still has a relatively high leverage ratio, which could pose risks if market conditions change. The company faces challenges in maintaining its growth trajectory as build-to-suit programs are expected to decline after 2026, necessitating a shift towards more colocation opportunities. There is uncertainty regarding the impact of the forthcoming Cybersecurity Act, which could require additional CapEx not fully accounted for in the 2027 guidance. The company has faced competitive pressures in tender processes, as evidenced by its decision to walk away from certain projects due to not meeting investment criteria. Cellnex Telecom SA (CLNXF) operates in a fragmented market, particularly in countries like Spain and France, which could limit its ability to achieve economies of scale.

Story Continues

Q & A Highlights

Q: Can you provide details on the Spanish revenue pick-up and the trajectory of that ramp-up through 2026? A: Marco Patuano, CEO: In Spain, the first phase involved redesigning the network from Mas Orange, leading to a material churn in points of presence (PoPs) at the start of 2025. In the latter half of 2025, we activated the Ran sharing agreement with Digi and started the rural project with Mas Orange. For 2026, we will enter the densification process with Mas Orange and continue activating more PoPs with Digi.

Q: What are the swing factors for the recurring levered free cash flow and free cash flow for 2027? A: Marco Patuano, CEO: The factors include maintaining revenue growth despite CPI challenges, achieving efficiencies, and disciplined capital allocation. We have renegotiated several contracts successfully, and our next renegotiations are not imminent. The range for 2027 remains as confirmed at the Capital Market Day, and we see it as feasible.

Q: Could you provide some indication of the size of the battery resilience agreement with Telefonica in Spain? A: Marco Patuano, CEO: The agreement is sizable, with plans to cover several thousand sites. It is a modular development based on network design, and we are negotiating good prices and long insurance terms for the batteries. This model is replicable in other countries, and we have interest from several customers.

Q: How do you see Cellnex's portfolio evolving over the next three to five years? A: Marco Patuano, CEO: We are not looking to expand geographically but see potential in in-market consolidation due to fragmentation in the tower sector. Consolidation can create synergies, such as managing more towers with fewer resources and decommissioning overlapping sites. We remain disciplined in our capital allocation.

Q: Can you elaborate on the reorganization announced at the beginning of the year? A: Marco Patuano, CEO: The reorganization aims to make the corporate structure more efficient and focused. We streamlined the headquarters and adjusted geographic combinations for synergies. The new Vertical Solutions division is designed to leverage our scale and act as a single large operator rather than multiple small ones, enhancing our ability to capture opportunities.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

Amid renewed concerns over inflated AI stock valuations and receding expectations for a U.S. interest rate cut, European markets have experienced a downturn, with major indexes such as the STOXX Europe 600 and Germany's DAX seeing notable declines. In this environment of cautious sentiment, identifying undervalued stocks can present opportunities for investors seeking value in solid fundamentals and potential for growth despite broader market challenges.

Top 10 Undervalued Stocks Based On Cash Flows In Europe

Name Current Price Fair Value (Est) Discount (Est) YIT Oyj (HLSE:YIT) €2.988 €5.94 49.7% Roche Bobois (ENXTPA:RBO) €35.00 €69.49 49.6% KB Components (OM:KBC) SEK42.30 SEK83.54 49.4% HMS Bergbau (XTRA:HMU) €52.00 €103.80 49.9% Exel Composites Oyj (HLSE:EXL1V) €0.392 €0.78 49.8% Esautomotion (BIT:ESAU) €3.12 €6.18 49.5% EcoUp Oyj (HLSE:ECOUP) €1.34 €2.65 49.4% cyan (XTRA:CYR) €2.28 €4.55 49.9% Circle (BIT:CIRC) €7.94 €15.68 49.4% Allcore (BIT:CORE) €1.33 €2.64 49.7%

Click here to see the full list of 200 stocks from our Undervalued European Stocks Based On Cash Flows screener.

Let's explore several standout options from the results in the screener.

Cellnex Telecom

Overview: Cellnex Telecom, S.A. operates and manages terrestrial telecommunications infrastructures across multiple European countries including Austria, Denmark, Spain, France, Ireland, Italy, the Netherlands, Poland, Portugal, the United Kingdom, Sweden and Switzerland with a market cap of €17.52 billion.

Operations: Cellnex Telecom generates revenue by managing terrestrial telecommunications infrastructures across various European nations, including Austria, Denmark, Spain, France, Ireland, Italy, the Netherlands, Poland, Portugal, the United Kingdom, Sweden and Switzerland.

Estimated Discount To Fair Value: 33.8%

Cellnex Telecom is trading at €25.71, significantly below its estimated fair value of €38.82, reflecting a 33.8% undervaluation based on discounted cash flow analysis. Despite recent net losses of €148 million in Q3 2025, the company is forecast to achieve profitability within three years, with earnings expected to grow by over 74% annually. Revenue growth projections outpace the Spanish market slightly at 4.6%, supporting its potential as an undervalued investment opportunity based on cash flows.

Insights from our recent growth report point to a promising forecast for Cellnex Telecom's business outlook. Dive into the specifics of Cellnex Telecom here with our thorough financial health report.BME:CLNX Discounted Cash Flow as at Nov 2025

DSV

Overview: DSV A/S provides transport and logistics services across multiple regions including Europe, the Middle East, Africa, North America, South America, Asia, Australia, and the Pacific with a market cap of DKK327.72 billion.

繼續閱讀

Operations: The company's revenue segments are comprised of Road services generating DKK63.81 billion, Solutions contributing DKK35.59 billion, Air Freight bringing in DKK68.84 billion, and Sea Freight accounting for DKK59.18 billion.

Estimated Discount To Fair Value: 45.3%

DSV is trading at DKK1388, significantly below its estimated fair value of DKK2537.42, suggesting a 45.3% undervaluation based on discounted cash flow analysis. Despite high debt levels and recent profit margin declines from 6.7% to 4.3%, earnings are expected to grow significantly over the next three years at 24.3% annually, outpacing the Danish market's growth rate of 5%. Recent strategic expansions in Virginia enhance its logistics capabilities and market reach in key U.S. regions.

According our earnings growth report, there's an indication that DSV might be ready to expand. Navigate through the intricacies of DSV with our comprehensive financial health report here.CPSE:DSV Discounted Cash Flow as at Nov 2025

Sonova Holding

Overview: Sonova Holding AG is a global provider of hearing care solutions for both children and adults, with operations across various regions including Switzerland, the United States, and others, and has a market cap of CHF11.83 billion.

Operations: The company's revenue is primarily derived from its Hearing Instruments segment, which generated CHF3.57 billion, and its Cochlear Implants segment, contributing CHF290.80 million.

Estimated Discount To Fair Value: 46.9%

Sonova Holding is trading at CHF198.5, well below its estimated fair value of CHF374.06, indicating it is undervalued based on discounted cash flow analysis. The company's earnings are projected to grow at 11.4% annually, surpassing the Swiss market's rate of 10.4%. However, recent financial results show a decline in net income from CHF208.6 million to CHF188.5 million year-over-year, reflecting potential challenges despite robust future growth expectations and strategic organizational restructuring initiatives underway.

Our growth report here indicates Sonova Holding may be poised for an improving outlook. Delve into the full analysis health report here for a deeper understanding of Sonova Holding.SWX:SOON Discounted Cash Flow as at Nov 2025

Key Takeaways

Access the full spectrum of 200 Undervalued European Stocks Based On Cash Flows by clicking on this link. Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools. Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

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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 BME:CLNX CPSE:DSV and SWX:SOON.

This article was originally published by Simply Wall St.

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