Stock Analysis

Unveiling France's Undiscovered Gems This October 2024

ENXTPA:CRBP2
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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

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
Caisse Régionale de Crédit Agricole Mutuel Brie Picardie Société coopérative34.89%3.23%3.61%★★★★★★
Caisse Régionale de Crédit Agricole Mutuel Nord de France Société coopérative10.84%3.22%6.38%★★★★★★
EssoF1.19%11.14%41.41%★★★★★★
Gévelot0.25%10.64%20.33%★★★★★★
ADLPartner82.84%9.86%16.18%★★★★★☆
VIEL & Cie société anonyme54.02%5.66%19.86%★★★★★☆
Caisse Regionale de Credit Agricole Mutuel Toulouse 3114.94%0.59%5.95%★★★★★☆
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 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 (ENXTPA:AXW)

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.

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

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 a variety of banking and financial services to diverse clients in France, with a market cap of approximately €970 million.

Operations: The company's primary revenue stream is retail banking, generating approximately €626 million. It has a market capitalization of around €970 million.

Caisse Régionale de Crédit Agricole Mutuel Brie Picardie, with total assets of €42.2 billion and equity of €5 billion, stands out for its robust financial health. The bank's deposits amount to €33.8 billion, while loans total €34.1 billion, supported by a sufficient allowance for bad loans at 115%. Impressively, 91% of its liabilities are low-risk customer deposits. Earnings grew by 6.2% last year, outperforming the industry average growth rate of 4%.

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

EssoF (ENXTPA:ES)

Simply Wall St Value Rating: ★★★★★★

Overview: Esso S.A.F. refines, distributes, and markets refined petroleum products in France and internationally with a market cap of €1.70 billion.

Operations: Esso S.A.F. generates revenue primarily from its refining and distribution segment, which accounted for €18.93 billion.

EssoF, a noteworthy player in the French market, has seen its debt to equity ratio improve significantly from 5.8% to 1.2% over five years, reflecting better financial health. Despite recent volatility in its share price and a drop in net income from €265.6 million to €116 million, EssoF remains free cash flow positive with high-quality earnings. The company is trading at 96.5% below estimated fair value, suggesting potential for undervaluation amidst industry challenges.

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

Key Takeaways

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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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