Euronext Paris: Top 3 Value Stock Picks For September 2024

As the European Central Bank's recent rate cuts aim to bolster economic growth, France's CAC 40 Index has shown a promising 1.54% gain. This environment presents an opportune moment for investors seeking undervalued stocks that could benefit from favorable monetary policies and market conditions. In this article, we will explore three value stock picks on Euronext Paris for September 2024, focusing on companies that exhibit strong fundamentals and potential for growth amidst these economic shifts.

Top 10 Undervalued Stocks Based On Cash Flows In France

Name	Current Price	Fair Value (Est)	Discount (Est)
SPIE (ENXTPA:SPIE)	€36.68	€52.76	30.5%
NSE (ENXTPA:ALNSE)	€30.40	€57.76	47.4%
Vivendi (ENXTPA:VIV)	€10.085	€18.06	44.2%
Safran (ENXTPA:SAF)	€200.90	€284.57	29.4%
Lectra (ENXTPA:LSS)	€28.00	€53.68	47.8%
Guillemot (ENXTPA:GUI)	€5.18	€9.00	42.5%
Groupe Berkem Société anonyme (ENXTPA:ALKEM)	€3.06	€5.11	40.1%
EKINOPS (ENXTPA:EKI)	€3.82	€5.73	33.4%
VusionGroup (ENXTPA:VU)	€150.60	€258.33	41.7%
OVH Groupe (ENXTPA:OVH)	€6.13	€8.85	30.7%

Click here to see the full list of 16 stocks from our Undervalued Euronext Paris Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results.

Guerbet (ENXTPA:GBT)

Overview: Guerbet SA develops and markets contrast media products, delivery systems, medical devices, and related solutions, with a market cap of €452.80 million.

Operations: Guerbet SA's primary revenue segment is the research, development, production, and sale of contrast media for medical imaging, generating €795.65 million.

Estimated Discount To Fair Value: 28.7%

Guerbet (€36) is trading at a significant discount to its fair value of €50.47, making it highly undervalued based on discounted cash flow analysis. Although its debt coverage by operating cash flow is weak, the company has recently become profitable and is expected to see earnings grow significantly at 23.1% per year over the next three years, outpacing both its revenue growth of 7.3% and the French market's average earnings growth rate of 12.3%.

• In light of our recent growth report, it seems possible that Guerbet's financial performance will exceed current levels.
• Click to explore a detailed breakdown of our findings in Guerbet's balance sheet health report.

Safran (ENXTPA:SAF)

Overview: Safran SA, with a market cap of €84.45 billion, operates globally in the aerospace and defense sectors through its subsidiaries.

Operations: Safran's revenue is primarily derived from Aerospace Propulsion (€12.66 billion), Aeronautical Equipment, Defense and Aerosystems (€9.91 billion), and Aircraft Interiors (€2.73 billion).

Estimated Discount To Fair Value: 29.4%

Safran (€200.9) is trading at a 29.4% discount to its estimated fair value of €284.57, indicating it may be undervalued based on discounted cash flow analysis. Despite recent earnings showing a decline in net income to €57 million for H1 2024, the company expects revenue around €27.4 billion for the full year and forecasts significant annual profit growth of over 20% and high return on equity at 23.5% within three years.

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

Tikehau Capital (ENXTPA:TKO)

Overview: Tikehau Capital is a private equity and venture capital firm that offers a comprehensive suite of financing products, including senior secured loans, equity, senior debt, unitranche, mezzanine, and preferred shares, with a market cap of €4.16 billion.

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

Estimated Discount To Fair Value: 26%

Tikehau Capital (€24.2) is trading at a 26% discount to its estimated fair value of €32.71, suggesting it may be undervalued based on discounted cash flow analysis. Despite a recent dip in net income to €57.55 million for H1 2024, the company forecasts significant earnings growth of over 41% annually and revenue growth of 25.6%. However, its dividend yield of 3.1% is not well covered by free cash flows, and debt coverage by operating cash flow remains weak.

• Upon reviewing our latest growth report, Tikehau Capital's projected financial performance appears quite optimistic.
• Click here and access our complete balance sheet health report to understand the dynamics of Tikehau Capital.

Seize The Opportunity

• Embark on your investment journey to our 16 Undervalued Euronext Paris Stocks Based On Cash Flows selection here.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
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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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