Thales And Two More Euronext Paris Stocks Estimated To Be Trading Below Their Fair Value

Amid a generally positive trend in European markets, with France's CAC 40 Index experiencing modest gains, investors continue to seek opportunities that might be overlooked. In this context, identifying stocks that are potentially undervalued becomes particularly compelling, as they may offer attractive entry points in a market buoyed by broader economic optimism.

Top 10 Undervalued Stocks Based On Cash Flows In France

Name	Current Price	Fair Value (Est)	Discount (Est)
Wavestone (ENXTPA:WAVE)	€56.00	€93.20	39.9%
Kalray (ENXTPA:ALKAL)	€9.68	€17.93	46%
Lectra (ENXTPA:LSS)	€28.00	€43.90	36.2%
Thales (ENXTPA:HO)	€152.60	€266.11	42.7%
Tikehau Capital (ENXTPA:TKO)	€23.30	€32.72	28.8%
ENENSYS Technologies (ENXTPA:ALNN6)	€0.618	€1.09	43.1%
Vivendi (ENXTPA:VIV)	€11.02	€16.37	32.7%
Figeac Aero Société Anonyme (ENXTPA:FGA)	€5.74	€9.97	42.4%
Groupe Airwell Société anonyme (ENXTPA:ALAIR)	€3.90	€6.21	37.2%
Esker (ENXTPA:ALESK)	€185.60	€258.92	28.3%

Click here to see the full list of 16 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.

Thales (ENXTPA:HO)

Overview: Thales S.A. is a global company offering solutions in defense, aerospace, digital identity and security, and transportation sectors with a market capitalization of approximately €31.54 billion.

Operations: The company generates revenue from its aerospace segment at €5.34 billion, digital identity and security at €3.42 billion, and defense & security excluding digital I&S at €10.18 billion.

Estimated Discount To Fair Value: 42.7%

Thales, trading at €152.6, is significantly undervalued by 42.7% compared to its estimated fair value of €266.11, highlighting a strong investment opportunity based on cash flow analysis. Despite a high level of debt and an unstable dividend track record, Thales shows promising financial prospects with earnings forecasted to grow 16.44% annually and revenue expected to increase by 6.3% per year, outpacing the French market's growth rate of 5.7%. Recent strategic alliances in cybersecurity and air traffic management underline its commitment to expanding market reach and enhancing technological capabilities.

• The analysis detailed in our Thales growth report hints at robust future financial performance.
• Get an in-depth perspective on Thales' balance sheet by reading our health report here.

Tikehau Capital (ENXTPA:TKO)

Overview: Tikehau Capital is a private equity and venture capital firm that offers a variety of financing products such as senior secured loans, equity, and mezzanine financing, with a market capitalization of approximately €4.03 billion.

Operations: The firm generates revenue primarily from two segments: investment activities, which brought in €179.19 million, and asset management activities, contributing €322.32 million.

Estimated Discount To Fair Value: 28.8%

Tikehau Capital, priced at €23.3, is currently valued 28.8% below its fair value of €32.72, suggesting it is undervalued based on cash flow analysis. Expected to grow earnings by 31.26% annually over the next three years, it outperforms the French market projection of 10.9%. However, its dividend coverage by free cash flows is weak, and profit margins have declined from last year's 53.2% to 35.2%. Recently, a strategic partnership with Nikko Asset Management was formed to enhance investment capabilities in Asia.

• Our earnings growth report unveils the potential for significant increases in Tikehau Capital's future results.
• Click to explore a detailed breakdown of our findings in Tikehau Capital's balance sheet health report.

Vivendi (ENXTPA:VIV)

Overview: Vivendi SE is a France-based entertainment, media, and communication company with operations spread across Europe, the Americas, Asia/Oceania, and Africa, boasting a market capitalization of €11.29 billion.

Operations: Vivendi's revenue is primarily generated through its Canal + Group (€6.06 billion), Havas Group (€2.87 billion), and smaller contributions from Lagardère (€0.67 billion), Gameloft (€0.31 billion), Prisma Media (€0.31 billion), Vivendi Village (€0.18 billion), and New Initiatives (€0.15 billion).

Estimated Discount To Fair Value: 32.7%

Vivendi, priced at €11.02, trades significantly below its fair value of €16.37, indicating a potential undervaluation based on cash flow metrics. With an expected annual earnings growth of 29.27% over the next three years and revenue growth also outpacing the French market average, its financial prospects appear robust despite a low forecasted return on equity of 6%. Recent strategic moves include plans for Canal+'s listing and settling longstanding legal disputes, which may positively influence future financial stability and market perception.

• According our earnings growth report, there's an indication that Vivendi might be ready to expand.
• Navigate through the intricacies of Vivendi with our comprehensive financial health report here.

Taking Advantage

• Embark on your investment journey to our 16 Undervalued Euronext Paris Stocks Based On Cash Flows selection here.
• Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
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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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