Stock Analysis

3 Hidden French Stocks With Strong Financial Foundations

ENXTPA:CIV
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As global markets react to the recent Federal Reserve rate cut, investors are increasingly turning their attention to small-cap stocks, which have shown notable resilience and potential for growth. In this context, France's market offers a fertile ground for discovering hidden gems with strong financial foundations. A good stock in today's environment is characterized by robust financial health and the ability to navigate economic shifts effectively. Here, we explore three lesser-known French stocks that exemplify these qualities.

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%★★★★★★
EssoF1.19%11.14%41.41%★★★★★★
Gévelot0.25%10.64%20.33%★★★★★★
Caisse régionale de Crédit Agricole Mutuel d'Ille-et-Vilaine Société coopérative4.90%7.75%11.53%★★★★★★
VIEL & Cie société anonyme72.14%5.72%19.86%★★★★★☆
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%★★★★☆☆
Fiducial Real Estate33.77%1.63%3.30%★★★★☆☆
Société Fermière du Casino Municipal de Cannes11.60%6.69%10.30%★★★★☆☆

Click here to see the full list of 33 stocks from our Euronext Paris Undiscovered Gems With Strong Fundamentals screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Bourse Direct (ENXTPA:BSD)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Bourse Direct SA offers Internet stock brokerage services in France and has a market cap of €272.28 million.

Operations: Bourse Direct generates revenue primarily from brokerage fees and commissions. The company incurs costs related to technology infrastructure, customer service, and regulatory compliance. Gross profit margin is reported at 65%.

Bourse Direct, a notable player in the Capital Markets sector, has seen impressive earnings growth of 77.5% over the past year, outpacing the industry average of 38.7%. The company's net debt to equity ratio stands at a satisfactory 20.1%, significantly reduced from 224% five years ago. Recently reported half-year net income was EUR10.2 million compared to EUR8.1 million last year, reflecting robust financial health and high-quality earnings with a price-to-earnings ratio of 15.1x below industry norms (18x).

ENXTPA:BSD Debt to Equity as at Sep 2024
ENXTPA:BSD Debt to Equity as at Sep 2024

Caisse régionale de Crédit Agricole Mutuel d'Ille-et-Vilaine Société coopérative (ENXTPA:CIV)

Simply Wall St Value Rating: ★★★★★★

Overview: Caisse régionale de Crédit Agricole Mutuel d'Ille-et-Vilaine Société coopérative offers banking services in France and has a market cap of €351.42 million.

Operations: The company generates revenue primarily through its banking services in France. With a market cap of €351.42 million, it focuses on various financial products and services to drive its income streams.

Caisse régionale de Crédit Agricole Mutuel d'Ille-et-Vilaine Société coopérative, with total assets of €20.2B and equity of €2.3B, has shown solid performance. Total deposits stand at €16.9B while loans are at €16.2B, supported by primarily low-risk funding sources (94%). The bank's earnings grew 17.9% over the past year, significantly outpacing the industry average of -2.7%. Additionally, it maintains an appropriate bad loans ratio of 1.3% and sufficient allowance for bad loans at 130%.

ENXTPA:CIV Debt to Equity as at Sep 2024
ENXTPA:CIV Debt to Equity as at Sep 2024

Savencia (ENXTPA:SAVE)

Simply Wall St Value Rating: ★★★★★★

Overview: Savencia SA produces, distributes, and markets dairy and cheese products in France, the rest of Europe, and internationally with a market cap of €706.14 million.

Operations: Savencia generates revenue through the production, distribution, and marketing of dairy and cheese products across France, Europe, and internationally. The company has a market cap of €706.14 million.

Savencia, a notable player in the French food industry, has seen its earnings grow by 114.7% over the past year, outpacing the sector's 67.3%. The company reported half-year sales of €3.38 billion and net income of €57.92 million as of June 30, 2024. Basic earnings per share rose to €4.33 from last year's €3.8. Despite a one-off loss of €43.6 million impacting recent results, Savencia's debt to equity ratio improved from 88.6% to 69.5% over five years and its net debt to equity ratio stands at a satisfactory 24.9%.

ENXTPA:SAVE Debt to Equity as at Sep 2024
ENXTPA:SAVE Debt to Equity 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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