Undiscovered Gems In France Featuring 3 Promising Small Caps
editorial-team@simplywallst.com (Simply Wall St)
4 min read
The French market has shown resilience amid global economic shifts, with the CAC 40 Index adding 0.47% recently, reflecting cautious optimism among investors. As small-cap stocks gain traction in this environment, identifying promising opportunities becomes crucial for those looking to capitalize on potential growth. In this context, a good stock often combines solid fundamentals with the ability to navigate current market conditions effectively. Here are three small-cap companies in France that stand out as undiscovered gems worth exploring.
Top 10 Undiscovered Gems With Strong Fundamentals In France
Name
Debt To Equity
Revenue Growth
Earnings Growth
Health Rating
Caisse Régionale de Crédit Agricole Mutuel Brie Picardie Société coopérative
34.89%
3.23%
3.61%
★★★★★★
EssoF
1.19%
11.14%
41.41%
★★★★★★
Gévelot
0.25%
10.64%
20.33%
★★★★★★
VIEL & Cie société anonyme
72.14%
5.72%
19.86%
★★★★★☆
ADLPartner
86.83%
9.59%
11.00%
★★★★★☆
CFM Indosuez Wealth Management
239.60%
10.01%
13.52%
★★★★★☆
La Forestière Equatoriale
0.00%
-50.76%
49.41%
★★★★★☆
Caisse Régionale de Crédit Agricole Mutuel Alpes Provence Société coopérative
Overview: Axway Software SA is an infrastructure software publisher with operations spanning France, the rest of Europe, the Americas, and the Asia Pacific, and has a market cap of approximately €694.21 million.
Operations: Axway Software SA generates its revenue from four primary segments: License (€8.46 million), Maintenance (€77.04 million), Subscription (€201.19 million), and Services excluding Subscription (€35.49 million).
Axway Software, a small French tech company, has shown promising financial metrics recently. With a price-to-earnings ratio of 19.9x below the industry average of 35.1x and high-quality earnings, Axway stands out in its sector. The net debt to equity ratio is satisfactory at 19.9%, and interest payments are well covered by EBIT at 10.1x coverage. Despite shareholder dilution over the past year, Axway's recent profitability and strategic acquisitions position it for potential growth in the coming years.
Overview: Neurones S.A. is an IT services company offering infrastructure, application, and consulting services in France and internationally, with a market cap of €1.06 billion.
Operations: Neurones generates revenue primarily through its infrastructure, application, and consulting services. The company reported a market cap of €1.06 billion.
Neurones has shown resilience in the IT sector, with earnings growth of 1.8% over the past year, outpacing the industry average of -7.4%. The company reported half-year revenue of €402.43 million, up from €368.69 million last year, although net income dipped slightly to €24.5 million from €25.42 million previously. Their debt-to-equity ratio rose to 2.8% over five years but remains manageable with more cash than total debt and positive free cash flow at €63.97 million as of June 2023.
Overview: Savencia SA produces, distributes, and markets dairy and cheese products in France, the rest of Europe, and internationally with a market cap of €692.76 million.
Operations: Savencia's revenue streams primarily come from the production, distribution, and marketing of dairy and cheese products across various regions. The company has a market cap of €692.76 million.
Savencia's recent half-year earnings report showed sales of €3.38 billion, slightly up from €3.38 billion last year, with net income rising to €57.92 million from €51.29 million. Basic and diluted EPS both increased to €4.33 from €3.8 previously, reflecting robust performance despite a one-off loss of €43.6M impacting the past 12 months' results ending June 30, 2024. The company’s net debt to equity ratio stands at a satisfactory 24.9%, and its EBIT covers interest payments by 12.7x.
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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:AXW ENXTPA:NRO and ENXTPA:SAVE.
