The French stock market, as represented by the CAC 40 Index, has recently experienced a notable decline of 3.65%, reflecting broader concerns about global economic growth and investor sentiment. Amid these challenging conditions, identifying stocks trading below their intrinsic value can offer potential opportunities for investors seeking undervalued assets. In this context, a good stock is typically characterized by strong fundamentals and a price that does not fully reflect its underlying value—making it an attractive option in the current market environment.
Top 10 Undervalued Stocks Based On Cash Flows In France
Name
Current Price
Fair Value (Est)
Discount (Est)
NSE (ENXTPA:ALNSE)
€29.20
€58.31
49.9%
Antin Infrastructure Partners SAS (ENXTPA:ANTIN)
€11.40
€17.40
34.5%
Vivendi (ENXTPA:VIV)
€9.982
€18.19
45.1%
Safran (ENXTPA:SAF)
€196.15
€306.82
36.1%
Lectra (ENXTPA:LSS)
€28.30
€53.72
47.3%
Guillemot (ENXTPA:GUI)
€5.12
€9.00
43.1%
Exosens (ENXTPA:EXENS)
€20.995
€41.89
49.9%
Groupe Berkem Société anonyme (ENXTPA:ALKEM)
€3.05
€5.13
40.5%
EKINOPS (ENXTPA:EKI)
€3.82
€5.76
33.7%
Pullup Entertainment Société anonyme (ENXTPA:ALPUL)
Overview: OVH Groupe S.A. is a global provider of public and private cloud services, shared hosting, and dedicated server solutions with a market cap of approximately €1.15 billion.
Operations: The company generates revenue from three primary segments: Public Cloud (€169.01 million), Private Cloud (€589.61 million), and Web Cloud & Other (€185.43 million).
Estimated Discount To Fair Value: 31.7%
OVH Groupe appears undervalued based on cash flows, trading at €6.05, significantly below its estimated fair value of €8.85. Recent innovations like the ADV-Gen3 Bare Metal servers with AMD EPYC 4004 processors enhance performance and price ratio, potentially driving revenue growth forecasted at 9.7% annually—faster than the French market's 5.7%. Despite a volatile share price and low future return on equity (1.7%), profitability is expected within three years, making it an attractive option for investors seeking value in cash flow metrics.
Overview: Safran SA, with a market cap of €82.46 billion, operates globally in the aerospace and defense sectors through its subsidiaries.
Operations: The company's revenue segments include Aerospace Propulsion (€12.66 billion), Aeronautical Equipment, Defense and Aerosystems (€9.91 billion), and Aircraft Interiors (€2.73 billion).
Estimated Discount To Fair Value: 36.1%
Safran SA is trading at €196.15, significantly below its estimated fair value of €306.82, indicating it may be undervalued based on cash flows. Despite a decline in net income to €57 million for H1 2024 from €1.86 billion a year ago, the company's earnings are forecasted to grow 20.6% annually over the next three years, outpacing the French market's growth rate of 12.3%. The potential acquisition of Preligens SAS could further enhance Safran's digital transformation and AI capabilities, boosting future profitability and operational efficiency.
Overview: Tikehau Capital is a private equity and venture capital firm that offers a comprehensive range of financing products, including senior secured loans, equity, senior debt, unitranche, mezzanine, and preferred shares; it has a market cap of €3.89 billion.
Operations: The company's revenue segments consist of €173.11 million from Investment Activities and €322.94 million from Asset Management Activities.
Estimated Discount To Fair Value: 30.8%
Tikehau Capital is trading at €22.6, below its estimated fair value of €32.65, suggesting it is undervalued based on cash flows. Earnings are forecast to grow 41.4% annually over the next three years, significantly outpacing the French market's 12.3%. Despite a recent decline in net income to €57.55 million for H1 2024 from €71.99 million a year ago, Tikehau's strategic partnership with Nikko Asset Management could enhance global investment capabilities and revenue growth prospects.
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:OVH ENXTPA:SAF and ENXTPA:TKO.
