Euronext Paris Stocks Estimated To Be Undervalued In September 2024

As European markets continue to rally, supported by a slowdown in inflation and potential rate cuts from the European Central Bank, investors are increasingly looking for opportunities within the Euronext Paris. Identifying undervalued stocks during such times can be crucial for maximizing returns, especially when market conditions present a mix of cautious optimism and economic resilience.

Top 10 Undervalued Stocks Based On Cash Flows In France

Name	Current Price	Fair Value (Est)	Discount (Est)
SPIE (ENXTPA:SPIE)	€36.38	€51.51	29.4%
MEMSCAP (ENXTPA:MEMS)	€6.00	€9.52	36.9%
Tikehau Capital (ENXTPA:TKO)	€22.35	€32.32	30.8%
Vivendi (ENXTPA:VIV)	€10.15	€18.15	44.1%
Safran (ENXTPA:SAF)	€197.20	€304.86	35.3%
Lectra (ENXTPA:LSS)	€28.20	€53.82	47.6%
Guillemot (ENXTPA:GUI)	€5.72	€9.04	36.7%
Groupe Berkem Société anonyme (ENXTPA:ALKEM)	€3.08	€5.11	39.7%
EKINOPS (ENXTPA:EKI)	€3.50	€5.57	37.1%
OVH Groupe (ENXTPA:OVH)	€6.145	€8.82	30.4%

Click here to see the full list of 17 stocks from our Undervalued Euronext Paris Stocks Based On Cash Flows screener.

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

Safran (ENXTPA:SAF)

Overview: Safran SA, with a market cap of €82.90 billion, operates globally in the aerospace and defense sectors through its subsidiaries.

Operations: Revenue segments for Safran SA include Aircraft Interiors at €2.73 billion, Aerospace Propulsion at €12.66 billion, and Aeronautical Equipment, Defense and Aerosystems at €9.91 billion.

Estimated Discount To Fair Value: 35.3%

Safran is trading at €197.2, significantly below its estimated fair value of €304.86, indicating it may be undervalued based on cash flows. Despite a recent drop in profit margins to 6.4% from 14.4%, earnings are forecast to grow 20.6% annually, outpacing the French market's 12.2%. Recent H1 results showed revenue growth to €13.41 billion from €11.36 billion year-on-year, although net income fell sharply to €57 million from €1.86 billion due to higher costs and investments in AI capabilities through acquisitions like Preligens SAS for €220 million.

• Our earnings growth report unveils the potential for significant increases in Safran's future results.
• Take a closer look at Safran's balance sheet health here in our report.

SPIE (ENXTPA:SPIE)

Overview: SPIE SA offers multi-technical services in energy and communications across France, Germany, the Netherlands, and internationally, with a market cap of €6.07 billion.

Operations: SPIE generates revenue primarily from North-Western Europe (€1.89 billion), Global Services Energy (€684.90 million), and Holdings (€23.80 million).

Estimated Discount To Fair Value: 29.4%

SPIE is trading at €36.38, well below its estimated fair value of €51.51, 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, earnings are forecast to grow 20.3% annually, outpacing the French market's 12.2%. Revenue grew to €4.66 billion from €4.13 billion year-on-year, though the company has a high level of debt and an unstable dividend track record.

• Upon reviewing our latest growth report, SPIE's projected financial performance appears quite optimistic.
• Click here to discover the nuances of SPIE with our detailed 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, and has a market cap of approximately €10.23 billion.

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

Estimated Discount To Fair Value: 44.1%

Vivendi, trading at €10.15, is significantly undervalued with an estimated fair value of €18.15. Despite a modest decline in net income to €159 million for H1 2024 from €174 million a year ago, the company's earnings are forecast to grow 30.6% annually, outpacing the French market's 12.2%. Recent developments include share buybacks and potential spinoff plans for Canal+, which could unlock further value for shareholders.

• Our expertly prepared growth report on Vivendi implies its future financial outlook may be stronger than recent results.
• Get an in-depth perspective on Vivendi's balance sheet by reading our health report here.

Key Takeaways

• Click here to access our complete index of 17 Undervalued Euronext Paris Stocks Based On Cash Flows.
• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Curious About Other Options?

• 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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