3 Companies On Euronext Paris That Might Be Trading Below Intrinsic Value

In recent weeks, the French stock market has shown resilience amid global economic uncertainties, with the CAC 40 Index posting modest gains. As investors navigate this volatile environment, identifying undervalued stocks on Euronext Paris could present unique opportunities for those looking to capitalize on potential market inefficiencies. A good stock in such conditions is often characterized by strong fundamentals, a solid business model, and the potential for growth despite broader market challenges.

Top 10 Undervalued Stocks Based On Cash Flows In France

Name	Current Price	Fair Value (Est)	Discount (Est)
SPIE (ENXTPA:SPIE)	€33.68	€49.75	32.3%
Vivendi (ENXTPA:VIV)	€9.488	€17.98	47.2%
MEMSCAP (ENXTPA:MEMS)	€6.06	€9.54	36.5%
Tikehau Capital (ENXTPA:TKO)	€22.45	€33.15	32.3%
Arcure (ENXTPA:ALCUR)	€6.12	€8.51	28.1%
Safran (ENXTPA:SAF)	€192.20	€304.85	37%
Guillemot (ENXTPA:GUI)	€5.38	€9.00	40.2%
EKINOPS (ENXTPA:EKI)	€3.405	€5.52	38.4%
Pullup Entertainment Société anonyme (ENXTPA:ALPUL)	€15.78	€21.79	27.6%
OVH Groupe (ENXTPA:OVH)	€5.565	€8.64	35.6%

Click here to see the full list of 15 stocks from our Undervalued Euronext Paris Stocks Based On Cash Flows screener.

Here's a peek at a few of the choices from the screener.

Safran (ENXTPA:SAF)

Overview: Safran SA, with a market cap of €80.80 billion, operates globally in the aerospace and defense sectors through its subsidiaries.

Operations: The company's revenue segments include Aircraft Interiors (€2.73 billion), Aerospace Propulsion (€12.66 billion), and Aeronautical Equipment, Defense, and Aerosystems (€9.91 billion).

Estimated Discount To Fair Value: 37%

Safran is trading at €192.2, significantly below its estimated fair value of €304.85, indicating it may be undervalued based on cash flows. Earnings are forecast to grow 22.2% annually, outpacing the French market's 12.2%. Despite a recent drop in profit margins from 14.4% to 6.4%, revenue grew from €11,355 million to €13,412 million year-over-year for H1 2024. Safran's acquisition discussions with Preligens SAS could enhance its AI capabilities and digital transformation efforts.

• Insights from our recent growth report point to a promising forecast for Safran's business outlook.
• Click here to discover the nuances of Safran with our detailed financial health report.

SPIE (ENXTPA:SPIE)

Overview: SPIE SA provides multi-technical services in energy and communications across France, Germany, the Netherlands, and internationally, with a market cap of €5.62 billion.

Operations: Revenue segments for SPIE SA include North-Western Europe (€1.89 billion), Global Services Energy (€684.90 million), and Holdings (€23.80 million).

Estimated Discount To Fair Value: 32.3%

SPIE is trading at €33.68, significantly below its estimated fair value of €49.75, suggesting it is undervalued based on cash flows. Despite a decline in net income to €56.75 million for H1 2024 from €73.17 million a year ago, revenue increased to €4.66 billion from €4.13 billion year-over-year. Earnings are forecast to grow 20% annually, outpacing the French market's growth rate and highlighting potential long-term value despite high debt levels and recent earnings volatility due to one-off items.

• Upon reviewing our latest growth report, SPIE's projected financial performance appears quite optimistic.
• Dive into the specifics of SPIE here with our thorough financial health report.

Vivendi (ENXTPA:VIV)

Overview: Vivendi SE is an entertainment, media, and communication company with operations across France, Europe, the Americas, Asia/Oceania, and Africa, boasting a market cap of approximately €9.57 billion.

Operations: The company's revenue segments include Canal+ Group (€6.20 billion), Havas Group (€2.92 billion), Gameloft (€304 million), Prisma Media (€303 million), Vivendi Village (€151 million), New Initiatives (€176 million), and a Segment Adjustment of €4.86 billion.

Estimated Discount To Fair Value: 47.2%

Vivendi is trading at €9.49, significantly below its estimated fair value of €17.98, indicating it is undervalued based on cash flows. Earnings are forecast to grow 30.6% annually, outpacing the French market's growth rate of 12.2%. However, recent earnings reports show a decline in net income to €159 million for H1 2024 from €174 million a year ago despite sales doubling to €9.05 billion. The company also completed a share buyback program worth €184 million and is exploring a spinoff of Canal+.

• Our growth report here indicates Vivendi may be poised for an improving outlook.
• Take a closer look at Vivendi's balance sheet health here in our report.

Turning Ideas Into Actions

• Explore the 15 names from our Undervalued Euronext Paris Stocks Based On Cash Flows screener here.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Want To Explore Some Alternatives?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

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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