Stock Analysis

Discover These 3 Undiscovered Gems in France with Strong Potential

ENXTPA:CRBP2
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As global markets react to China's robust stimulus measures and the pan-European STOXX Europe 600 Index rebounds, France's CAC 40 Index has climbed nearly 4%, reflecting renewed optimism. In this buoyant environment, identifying promising small-cap stocks in France could offer significant opportunities for investors. In the current market conditions, a good stock often demonstrates resilience amid economic shifts and possesses strong growth potential within its sector. Here are three undiscovered gems in France that exhibit these qualities and could be worth your attention.

Top 10 Undiscovered Gems With Strong Fundamentals In France

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
Caisse Régionale de Crédit Agricole Mutuel Brie Picardie Société coopérative34.89%3.23%3.61%★★★★★★
EssoF1.19%11.14%41.41%★★★★★★
Gévelot0.25%10.64%20.33%★★★★★★
VIEL & Cie société anonyme54.02%5.66%19.86%★★★★★☆
ADLPartner86.83%9.59%11.00%★★★★★☆
Caisse Regionale de Credit Agricole Mutuel Toulouse 3114.94%0.59%5.95%★★★★★☆
CFM Indosuez Wealth Management239.60%10.01%13.52%★★★★★☆
La Forestière Equatoriale0.00%-50.76%49.41%★★★★★☆
Caisse Régionale de Crédit Agricole Mutuel Alpes Provence Société coopérative391.01%4.67%17.31%★★★★☆☆
Société Fermière du Casino Municipal de Cannes11.60%6.69%10.30%★★★★☆☆

Click here to see the full list of 39 stocks from our Euronext Paris Undiscovered Gems With Strong Fundamentals screener.

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

Caisse Régionale de Crédit Agricole Mutuel Brie Picardie Société coopérative (ENXTPA:CRBP2)

Simply Wall St Value Rating: ★★★★★★

Overview: Caisse Régionale de Crédit Agricole Mutuel Brie Picardie Société coopérative offers diverse banking and financial services to various customer segments in France, with a market cap of approximately €966.68 million.

Operations: Brie Picardie generates revenue primarily from its retail banking segment, amounting to €625.99 million.

Caisse Régionale de Crédit Agricole Mutuel Brie Picardie Société coopérative, with total assets of €42.2B and equity of €5.0B, has been a standout performer in the banking sector. Total deposits stand at €33.8B against loans of €34.1B, showcasing solid financial health. The bank's earnings growth over the past year was 6.2%, outpacing the industry average of 1.3%. Additionally, it has a sufficient allowance for bad loans (115%) and maintains an appropriate level of non-performing loans (1.2%).

ENXTPA:CRBP2 Earnings and Revenue Growth as at Oct 2024
ENXTPA:CRBP2 Earnings and Revenue Growth as at Oct 2024

EPC Groupe (ENXTPA:EXPL)

Simply Wall St Value Rating: ★★★★☆☆

Overview: EPC Groupe is involved in the manufacture, storage, and distribution of explosives across Europe, Africa, Asia Pacific, and the Americas with a market cap of €405.95 million.

Operations: EPC Groupe generates revenue primarily from its Specialty Chemicals segment, which brought in €487.56 million. The company has a market cap of €405.95 million.

EPC Groupe, a small cap in the chemicals industry, reported half-year sales of €242.42 million and net income of €12.52 million for June 2024. Despite high volatility in its share price recently, the company’s earnings grew by 17.4% last year, outpacing the industry’s -31.3%. However, interest payments are not well covered by EBIT (2.6x coverage), and its net debt to equity ratio stands at a high 42.6%, though it has improved over five years from 60.7%.

ENXTPA:EXPL Debt to Equity as at Oct 2024
ENXTPA:EXPL Debt to Equity as at Oct 2024

CFM Indosuez Wealth Management (ENXTPA:MLCFM)

Simply Wall St Value Rating: ★★★★★☆

Overview: CFM Indosuez Wealth Management SA, along with its subsidiaries, provides banking and financial solutions to private investors, businesses, institutions, and professionals in Monaco and internationally; the company has a market cap of €658.95 million.

Operations: CFM Indosuez Wealth Management SA generates revenue primarily from its wealth management segment, which amounts to €196.38 million. The company's market cap stands at €658.95 million.

CFM Indosuez Wealth Management, with total assets of €7.7B and equity at €404.3M, has shown impressive earnings growth of 40.1% over the past year, outpacing the banks industry average of 1.3%. The company also boasts a P/E ratio of 10.8x, which is attractive compared to the French market's 14.5x. Additionally, CFM Indosuez maintains a low bad loan allowance at 34% and an appropriate level of non-performing loans at just 0.8%.

ENXTPA:MLCFM Debt to Equity as at Oct 2024
ENXTPA:MLCFM Debt to Equity as at Oct 2024

Where To Now?

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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.

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