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As the European markets experience a modest rise, with France's CAC 40 Index adding 0.48% amid hopes for quicker interest rate cuts by the European Central Bank, there is a renewed focus on identifying stocks that might be trading below their intrinsic value. In this context, understanding what constitutes an undervalued stock—typically those whose market price does not fully reflect their potential earnings or asset value—becomes crucial for investors looking to capitalize on current market conditions.
Top 10 Undervalued Stocks Based On Cash Flows In France
Name | Current Price | Fair Value (Est) | Discount (Est) |
Vivendi (ENXTPA:VIV) | €10.255 | €17.93 | 42.8% |
STIF Société anonyme (ENXTPA:ALSTI) | €28.00 | €55.58 | 49.6% |
NSE (ENXTPA:ALNSE) | €29.80 | €57.38 | 48.1% |
Lectra (ENXTPA:LSS) | €28.25 | €53.05 | 46.7% |
Groupe Berkem Société anonyme (ENXTPA:ALKEM) | €3.07 | €5.09 | 39.7% |
EKINOPS (ENXTPA:EKI) | €3.80 | €6.64 | 42.7% |
Solutions 30 (ENXTPA:S30) | €1.16 | €2.31 | 49.8% |
Vogo (ENXTPA:ALVGO) | €3.24 | €6.26 | 48.3% |
Exail Technologies (ENXTPA:EXA) | €17.56 | €29.62 | 40.7% |
OVH Groupe (ENXTPA:OVH) | €6.46 | €11.80 | 45.3% |
Let's review some notable picks from our screened stocks.
Safran
Overview: Safran SA, along with its subsidiaries, operates in the aerospace and defense sectors globally, with a market capitalization of €86.09 billion.
Operations: The company's revenue is primarily derived from Aerospace Propulsion (€12.66 billion), Aeronautical Equipment, Defense and Aerosystems (€9.91 billion), and Aircraft Interiors (€2.73 billion).
Estimated Discount To Fair Value: 28.8%
Safran is currently trading at €204.8, significantly below its estimated fair value of €287.67, indicating potential undervaluation based on cash flows. Despite a decline in net profit margin from 14.4% to 6.4%, revenue for the first half of 2024 increased to €13.41 billion from €11.36 billion last year, with full-year revenue expected to reach around €27.4 billion, suggesting robust growth prospects compared to the French market average.
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The analysis detailed in our Safran growth report hints at robust future financial performance.
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Unlock comprehensive insights into our analysis of Safran stock in this financial health report.
SPIE
Overview: SPIE SA offers multi-technical services focused on energy and communications across France, Germany, the Netherlands, and internationally, with a market cap of approximately €5.74 billion.
Operations: The company's revenue segments include North-Western Europe with €1.89 billion and Global Services Energy with €684.90 million.