Discover Safran And 2 Other Stocks On Euronext Paris Possibly Trading Below Fair Value

In recent weeks, the French market has shown resilience, with the CAC 40 Index adding 0.47% despite a cautious outlook on monetary policy following the U.S. Federal Reserve's interest rate cut. As investors navigate these uncertain times, identifying undervalued stocks becomes crucial for those looking to capitalize on potential growth opportunities. A good stock in this environment typically exhibits strong fundamentals and is trading below its intrinsic value, offering a margin of safety for investors amid fluctuating market conditions.

Top 10 Undervalued Stocks Based On Cash Flows In France

Name	Current Price	Fair Value (Est)	Discount (Est)
Cogelec (ENXTPA:ALLEC)	€11.60	€23.13	49.8%
NSE (ENXTPA:ALNSE)	€30.00	€57.49	47.8%
Vivendi (ENXTPA:VIV)	€10.185	€18.04	43.5%
Guillemot (ENXTPA:GUI)	€5.26	€9.00	41.6%
Lectra (ENXTPA:LSS)	€29.60	€53.77	45%
Groupe Berkem Société anonyme (ENXTPA:ALKEM)	€3.06	€5.11	40.1%
Pullup Entertainment Société anonyme (ENXTPA:ALPUL)	€22.40	€39.19	42.8%
VusionGroup (ENXTPA:VU)	€150.60	€257.69	41.6%
Solutions 30 (ENXTPA:S30)	€1.446	€2.17	33.5%
OVH Groupe (ENXTPA:OVH)	€6.06	€8.76	30.8%

Click here to see the full list of 19 stocks from our Undervalued Euronext Paris Stocks Based On Cash Flows screener.

Let's take a closer look at a couple of our picks from the screened companies.

Safran (ENXTPA:SAF)

Overview: Safran SA, with a market cap of €88.36 billion, operates in the aerospace and defense sectors globally through its subsidiaries.

Operations: Its 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: 25.9%

Safran's stock appears undervalued based on cash flows, trading at €210.2, which is 25.9% below its estimated fair value of €283.69. Despite a recent dip in profit margins to 6.4%, the company's revenue and earnings are forecast to grow faster than the French market at 10.5% and 20.1% per year, respectively. Recent earnings showed significant sales growth but lower net income due to increased expenses, while upcoming AI-focused acquisitions could enhance future profitability and efficiency.

• Our growth report here indicates Safran may be poised for an improving outlook.
• Dive into the specifics of Safran here with our thorough financial health report.

Tikehau Capital (ENXTPA:TKO)

Overview: Tikehau Capital is a private equity and venture capital firm that offers a comprehensive range of financing products including senior secured loans, equity, senior debt, unitranche, mezzanine, and preferred shares, with a market cap of approximately €4.30 billion.

Operations: The company's revenue segments are comprised of €173.11 million from Investment Activities and €322.94 million from Asset Management Activities.

Estimated Discount To Fair Value: 23.7%

Tikehau Capital is trading at €25, significantly below its estimated fair value of €32.76. Despite a recent decline in net income to €57.55 million for H1 2024, the company's revenue is forecast to grow at 25.6% annually, outpacing the French market's 5.7%. The stock's undervaluation is further supported by strong expected annual earnings growth of 41.4%, although its dividend sustainability remains a concern due to insufficient free cash flow coverage.

• According our earnings growth report, there's an indication that Tikehau Capital might be ready to expand.
• Get an in-depth perspective on Tikehau Capital's balance sheet by reading our health report here.

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 €10.27 billion.

Operations: Vivendi SE generates revenue through various segments, including Canal+ Group (€6.20 billion), Havas Group (€2.92 billion), Gameloft (€304 million), Prisma Media (€303 million), New Initiatives (€176 million), and Vivendi Village (€151 million).

Estimated Discount To Fair Value: 43.5%

Vivendi SE's recent half-year earnings report shows sales of €9.05 billion, a significant increase from €4.70 billion the previous year, though net income slightly declined to €159 million. The company is trading at a substantial discount to its estimated fair value of €18.04 per share, currently priced at €10.19. Despite an unstable dividend history, Vivendi's earnings are forecast to grow significantly at 30.6% annually, outpacing the broader French market growth rate of 12.3%.

• Insights from our recent growth report point to a promising forecast for Vivendi's business outlook.
• Navigate through the intricacies of Vivendi with our comprehensive financial health report here.

Summing It All Up

• Access the full spectrum of 19 Undervalued Euronext Paris Stocks Based On Cash Flows by clicking on this link.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
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Ready To Venture Into Other Investment Styles?

• 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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