In This Article:
Amidst a backdrop of political uncertainty and fluctuating market indices, France's CAC 40 Index recently experienced a notable decline. In such an environment, identifying undervalued stocks can offer investors potential opportunities for growth as the market stabilizes.
Top 10 Undervalued Stocks Based On Cash Flows In France
Name | Current Price | Fair Value (Est) | Discount (Est) |
Vente-Unique.com (ENXTPA:ALVU) | €15.60 | €29.81 | 47.7% |
Kaufman & Broad (ENXTPA:KOF) | €27.20 | €52.86 | 48.5% |
Lectra (ENXTPA:LSS) | €27.70 | €43.09 | 35.7% |
Wavestone (ENXTPA:WAVE) | €55.00 | €88.85 | 38.1% |
Groupe OKwind Société anonyme (ENXTPA:ALOKW) | €19.60 | €34.20 | 42.7% |
Vivendi (ENXTPA:VIV) | €9.772 | €15.51 | 37% |
MEMSCAP (ENXTPA:MEMS) | €5.42 | €8.55 | 36.6% |
Tikehau Capital (ENXTPA:TKO) | €21.65 | €32.29 | 33% |
Thales (ENXTPA:HO) | €154.35 | €257.89 | 40.1% |
Groupe Airwell Société anonyme (ENXTPA:ALAIR) | €3.76 | €6.69 | 43.8% |
We'll examine a selection from our screener results
Kaufman & Broad
Overview: Kaufman & Broad S.A. is a property developer and builder in France, with a market capitalization of approximately €561.08 million.
Operations: The company operates primarily in property development and building within France.
Estimated Discount To Fair Value: 48.5%
Kaufman & Broad S.A., currently priced at €27.2, is trading significantly below its estimated fair value of €52.86, suggesting a potential undervaluation based on discounted cash flow analysis. Despite a recent downturn in quarterly performance with sales and net income declining to €228 million and €11.05 million respectively, the company's long-term outlook remains positive. Earnings are expected to grow by 13.41% annually, outpacing the French market's forecast of 11%, while projected revenue growth also exceeds market averages at 8.7% per year compared to 5.8%.
Lectra
Overview: Lectra SA, with a market cap of €1.05 billion, offers industrial intelligence solutions across the fashion, automotive, and furniture sectors in regions including Northern Europe, Southern Europe, the Americas, and Asia Pacific.
Operations: The company generates revenue from the Americas and Asia-Pacific regions, totaling €170.33 million and €110.28 million respectively.
Estimated Discount To Fair Value: 35.7%
Lectra SA, with a current price of €27.7, appears undervalued based on a discounted cash flow analysis, suggesting its market price is 35.7% below the estimated fair value of €43.09. Despite recent earnings showing a slight decline to €7.17 million from last year's €7.63 million, the company's revenue growth outpaces the French market at 11.3% per year versus 5.8%. Analysts expect significant earnings growth over the next three years and forecast an increase in stock price by 28.9%.