Euronext Paris: Edenred And 2 More Stocks Estimated To Be Trading Below Intrinsic Value

As geopolitical tensions in the Middle East have led to increased caution among European investors, major indices such as France's CAC 40 have experienced notable declines. Amidst this volatility, the search for undervalued stocks on Euronext Paris becomes particularly relevant, as discerning investors look for opportunities where market prices may not fully reflect a company's intrinsic value.

Top 10 Undervalued Stocks Based On Cash Flows In France

Name	Current Price	Fair Value (Est)	Discount (Est)
SPIE (ENXTPA:SPIE)	€34.36	€53.47	35.7%
NSE (ENXTPA:ALNSE)	€29.60	€57.47	48.5%
Vivendi (ENXTPA:VIV)	€10.245	€17.96	43%
Lectra (ENXTPA:LSS)	€28.50	€53.16	46.4%
Groupe Berkem Société anonyme (ENXTPA:ALKEM)	€3.06	€5.09	39.8%
EKINOPS (ENXTPA:EKI)	€3.76	€6.63	43.3%
Solutions 30 (ENXTPA:S30)	€1.22	€2.36	48.3%
Exail Technologies (ENXTPA:EXA)	€17.56	€29.74	40.9%
Vogo (ENXTPA:ALVGO)	€3.24	€6.35	49%
OVH Groupe (ENXTPA:OVH)	€6.505	€11.82	45%

Click here to see the full list of 21 stocks from our Undervalued Euronext Paris Stocks Based On Cash Flows screener.

Let's review some notable picks from our screened stocks.

Edenred (ENXTPA:EDEN)

Overview: Edenred SE operates a digital platform facilitating services and payments for companies, employees, and merchants globally, with a market cap of €8.36 billion.

Operations: The company generates revenue primarily from its Business Services segment, which amounts to €2.50 billion.

Estimated Discount To Fair Value: 17.1%

Edenred has shown strong financial performance, with half-year revenue reaching €1.40 billion and net income at €235 million. The company is trading 17.1% below its estimated fair value of €41.33 per share, indicating potential undervaluation based on cash flows. However, profit margins have decreased from last year and the dividend yield of 3.21% is not well covered by earnings, highlighting some financial vulnerabilities despite expected annual earnings growth of 19.2%.

• The growth report we've compiled suggests that Edenred's future prospects could be on the up.
• Navigate through the intricacies of Edenred with our comprehensive financial health report here.

Exclusive Networks (ENXTPA:EXN)

Overview: Exclusive Networks SA is a global cybersecurity specialist focusing on digital infrastructure, with a market cap of €2.14 billion.

Operations: The company's revenue segments are divided into €480 million from the APAC region, €4.19 billion from EMEA, and €705 million from the Americas.

Estimated Discount To Fair Value: 14.5%

Exclusive Networks is trading 14.5% below its estimated fair value of €27.67 per share, with a current price of €23.65, reflecting potential undervaluation based on cash flows despite lower profit margins this year. Earnings are forecast to grow significantly at 33.53% annually over the next three years, outpacing the French market's growth rate. Recent developments include a proposed acquisition by CD&R and Permira valuing the company at €2.2 billion, pending regulatory approval and shareholder consent.

• Our growth report here indicates Exclusive Networks may be poised for an improving outlook.
• Unlock comprehensive insights into our analysis of Exclusive Networks stock in this financial health 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 €5.73 billion.

Operations: The company's revenue segments include €1.89 billion from North-Western Europe and €684.90 million from Global Services Energy.

Estimated Discount To Fair Value: 35.7%

SPIE is trading at €34.36, significantly below its estimated fair value of €53.47, indicating potential undervaluation based on cash flows. Despite high debt levels and a recent decline in net income to €56.75 million for H1 2024 from €73.17 million the previous year, earnings are projected to grow substantially at 20.06% annually over the next three years, surpassing the French market's growth rate. However, the dividend track record remains unstable despite a recent increase announcement.

• Insights from our recent growth report point to a promising forecast for SPIE's business outlook.
• Click to explore a detailed breakdown of our findings in SPIE's balance sheet health report.

Seize The Opportunity

• Unlock our comprehensive list of 21 Undervalued Euronext Paris Stocks Based On Cash Flows by clicking here.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

Seeking Other Investments?

• 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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