Stock Analysis

Discover 3 Undiscovered Gems in France with Strong Potential

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The French market, like many global indices, has experienced notable fluctuations recently, with the CAC 40 Index dropping 3.65% amid renewed fears about global economic growth. Despite this volatility, opportunities still exist within the small-cap sector for discerning investors. In this environment, a good stock is often characterized by strong fundamentals and resilience to broader market trends. Let's explore three lesser-known French stocks that exhibit these qualities and hold significant potential for growth.

Top 10 Undiscovered Gems With Strong Fundamentals In France

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
Caisse Régionale de Crédit Agricole Mutuel Brie Picardie Société coopérative34.89%3.23%3.61%★★★★★★
Gévelot0.25%10.64%20.33%★★★★★★
EssoF1.19%11.14%41.41%★★★★★★
VIEL & Cie société anonyme63.16%5.66%19.86%★★★★★☆
Exacompta Clairefontaine30.44%6.92%31.73%★★★★★☆
ADLPartner86.83%9.59%11.00%★★★★★☆
La Forestière Equatoriale0.00%-50.76%49.41%★★★★★☆
Caisse Régionale de Crédit Agricole Mutuel Alpes Provence Société coopérative391.01%4.67%17.31%★★★★☆☆
Société Fermière du Casino Municipal de Cannes11.60%6.69%10.30%★★★★☆☆
Société Industrielle et Financière de l'Artois Société anonyme2.93%-1.09%8.31%★★★★☆☆

Click here to see the full list of 35 stocks from our Euronext Paris Undiscovered Gems With Strong Fundamentals screener.

Let's explore several standout options from the results in the screener.

Caisse Régionale de Crédit Agricole Mutuel Alpes Provence Société coopérative (ENXTPA:CRAP)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Caisse Régionale de Crédit Agricole Mutuel Alpes Provence Société coopérative offers a range of banking products and services in France, with a market cap of approximately €555.17 million.

Operations: Retail banking is the primary revenue stream for Caisse Régionale de Crédit Agricole Mutuel Alpes Provence Société coopérative, generating €434.27 million.

Caisse Régionale de Crédit Agricole Mutuel Alpes Provence Société coopérative, with €26.2B in total assets and €3.3B in equity, reported earnings growth of 5.3% over the past year, outpacing the industry average of -11%. The bank has a sufficient allowance for bad loans at 109%, with non-performing loans at an appropriate level of 1.7%. Trading at 68.2% below its fair value estimate, it also boasts high-quality earnings and primarily higher-risk funding sources make up 61% of its liabilities.

ENXTPA:CRAP Earnings and Revenue Growth as at Sep 2024

Roche Bobois (ENXTPA:RBO)

Simply Wall St Value Rating: ★★★★★☆

Overview: Roche Bobois S.A. engages in the furniture design and distribution business worldwide, with a market cap of €489.08 million.

Operations: Revenue streams for Roche Bobois S.A. include significant contributions from Roche Bobois USA/Canada (€150.21 million), Roche Bobois France (€118.72 million), and Roche Bobois Europe excluding France (€105.94 million). The company also generates revenue from Cuir Center (€43.39 million) and Corporate operations (€4.14 million).

Roche Bobois, a notable player in the high-end furniture market, has seen its earnings grow 34.9% annually over the past five years. Despite recent earnings growth of just 0.2%, which lagged behind the Consumer Durables sector's 28%, it trades at a significant discount—50.1% below estimated fair value. The company's debt-to-equity ratio improved from 39.5% to 33.4% over five years, and its interest payments are well covered by EBIT at 13.7x coverage.

ENXTPA:RBO Earnings and Revenue Growth as at Sep 2024

VIEL & Cie société anonyme (ENXTPA:VIL)

Simply Wall St Value Rating: ★★★★★☆

Overview: VIEL & Cie, société anonyme, is an investment company offering interdealer broking, online trading, and private banking services across Europe, the Middle East, Africa, the Americas, and the Asia-Pacific region with a market cap of €677.94 million.

Operations: VIEL & Cie generates revenue primarily from interdealer broking and online trading services. The company has a market cap of €677.94 million.

VIEL & Cie, société anonyme has demonstrated impressive earnings growth of 36.3% over the past year, outpacing the Capital Markets industry average of 30.7%. The company reported revenue of €598.8 million for the half year ending June 2024, up from €555.8 million a year ago, and net income increased to €65.4 million from €50.9 million last year. VIEL's debt to equity ratio has improved significantly over five years, dropping from 85.1% to 63.2%, while trading at a notable discount of 44% below its estimated fair value.

ENXTPA:VIL Earnings and Revenue Growth as at Sep 2024

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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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