Unveiling France's Undiscovered Gems This October 2024

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Amidst escalating geopolitical tensions in the Middle East and fluctuating oil prices, the French market has seen a notable decline, with the CAC 40 Index dropping by over 3% recently. As investors navigate these turbulent times, identifying promising small-cap stocks can be crucial for those looking to uncover potential opportunities in France's diverse economic landscape.

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%

★★★★★★

Caisse Régionale de Crédit Agricole Mutuel Nord de France Société coopérative

10.84%

3.22%

6.38%

★★★★★★

EssoF

1.19%

11.14%

41.41%

★★★★★★

Gévelot

0.25%

10.64%

20.33%

★★★★★★

ADLPartner

82.84%

9.86%

16.18%

★★★★★☆

VIEL & Cie société anonyme

54.02%

5.66%

19.86%

★★★★★☆

Caisse Regionale de Credit Agricole Mutuel Toulouse 31

14.94%

0.59%

5.95%

★★★★★☆

La Forestière Equatoriale

0.00%

-50.76%

49.41%

★★★★★☆

Caisse Régionale de Crédit Agricole Mutuel Alpes Provence Société coopérative

391.01%

4.67%

17.31%

★★★★☆☆

Société Fermière du Casino Municipal de Cannes

11.60%

6.69%

10.30%

★★★★☆☆

Click here to see the full list of 37 stocks from our Euronext Paris Undiscovered Gems With Strong Fundamentals screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Axway Software

Simply Wall St Value Rating: ★★★★★☆

Overview: Axway Software SA is an infrastructure software publisher operating across France, the rest of Europe, the Americas, and the Asia Pacific with a market cap of €723.26 million.

Operations: Axway Software generates revenue primarily from subscription services (€201.19 million), followed by maintenance (€77.04 million), services excluding subscription (€35.49 million), and licenses (€8.46 million). The company's cost structure and profitability are reflected in its net profit margin, which offers insight into its financial efficiency and overall performance relative to revenue generation.

Axway Software, a notable player in the French market, has seen its debt to equity ratio rise from 12.5% to 24.6% over five years, yet it remains satisfactory with a net debt to equity ratio of 19.9%. The company’s EBIT covers interest payments by 10 times, indicating strong financial health. Despite recent shareholder dilution and a dip in net income to €2.8 million for the half year ending June 2024, Axway's price-to-earnings ratio of 20.7x suggests good value compared to industry peers at 27.8x.