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Operations: The company's revenue segments are Mining and Metals - Nickel (€789 million), Mining and Metals - Mineral Sands (€280 million), and Segment Adjustment (€2.03 billion).

Estimated Discount To Fair Value: 13.7%

ERAMET is trading at €62.3, 13.7% below its estimated fair value of €72.22, suggesting it is undervalued based on cash flows. Despite a net loss of €41 million for H1 2024, the company’s revenue is forecast to grow faster than the French market at 9.6% per year and become profitable within three years. The recent inauguration of its lithium extraction plant in Argentina highlights strategic growth into battery metals, potentially enhancing future cash flows and valuation.

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

• Click here and access our complete balance sheet health report to understand the dynamics of ERAMET.

Lectra

Overview: Lectra SA offers industrial intelligence solutions for the fashion, automotive, and furniture markets across Northern Europe, Southern Europe, the Americas, and the Asia Pacific with a market cap of €1.04 billion.

Operations: The company's revenue segments include €172.65 million from the Americas and €118.54 million from the Asia-Pacific region.

Estimated Discount To Fair Value: 49.1%

Lectra SA is trading at €27.4, significantly below its estimated fair value of €53.79, indicating it is highly undervalued based on cash flows. Despite a slight decline in net income to €12.51 million for H1 2024, the company’s earnings are forecast to grow 29.3% annually over the next three years, outpacing the French market's growth rate of 12.3%. However, its return on equity is expected to remain relatively low at 13.2%.

• In light of our recent growth report, it seems possible that Lectra's financial performance will exceed current levels.

• Click here to discover the nuances of Lectra with our detailed financial health report.

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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 ENXTPA:ARAMI ENXTPA:ERA and ENXTPA:LSS.

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