Stock Analysis

Unveiling France's Undiscovered Gems This September 2024

ENXTPA:EXPL
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As global markets react to the recent Fed rate cut, France's CAC 40 Index has shown a modest gain, reflecting cautious optimism among investors. This backdrop provides an intriguing opportunity to explore some lesser-known French stocks that could benefit from the current economic climate. In this environment, identifying promising stocks often involves looking for companies with strong fundamentals and growth potential that may be overlooked by mainstream investors.

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 anonyme54.02%5.66%19.86%★★★★★☆
ADLPartner86.83%9.59%11.00%★★★★★☆
Caisse Regionale de Credit Agricole Mutuel Toulouse 3114.94%0.59%5.95%★★★★★☆
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%★★★★☆☆

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

Let's uncover some gems from our specialized screener.

EPC Groupe (ENXTPA:EXPL)

Simply Wall St Value Rating: ★★★★☆☆

Overview: EPC Groupe is involved in the manufacture, storage, and distribution of explosives across Europe, Africa, Asia Pacific, and the Americas with a market cap of €405.95 million.

Operations: EPC Groupe generates revenue primarily from the manufacture, storage, and distribution of explosives across multiple regions. The company has a market cap of €405.95 million.

EPC Groupe, a small-cap player in the chemicals industry, reported half-year sales of €242.42 million and net income of €12.52 million, both slightly down from last year. Despite this, earnings grew by 17.4% over the past year and are forecasted to grow 25.15% annually. The company's debt to equity ratio has improved marginally from 60.7% to 60.1%. However, interest payments on its debt remain poorly covered by EBIT at just 2.6x coverage.

ENXTPA:EXPL Earnings and Revenue Growth as at Sep 2024
ENXTPA:EXPL Earnings and Revenue Growth as at Sep 2024

Neurones (ENXTPA:NRO)

Simply Wall St Value Rating: ★★★★★☆

Overview: Neurones S.A. is an IT services company offering infrastructure, application, and consulting services in France and internationally with a market cap of €1.05 billion.

Operations: Neurones generates revenue from three main segments: Infrastructure Services (€483.86 million), Application Services (€236.52 million), and Consulting (€54.53 million).

Neurones, a small French IT services firm, has shown steady performance with recent half-year revenue of €402.43 million, up from €368.69 million last year. Despite this growth, net income dipped slightly to €24.5 million from €25.42 million previously. Basic earnings per share stood at €1.01 compared to the prior year's €1.05. Over the past five years, its debt-to-equity ratio rose modestly from 0% to 2.8%, while maintaining high-quality earnings and positive free cash flow of approximately €59 million in the latest quarter.

ENXTPA:NRO Earnings and Revenue Growth as at Sep 2024
ENXTPA:NRO Earnings and Revenue Growth 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 €700.79 million.

Operations: Savencia generates revenue primarily from the production, distribution, and marketing of dairy and cheese products across France, Europe, and globally. The company has a market capitalization of €700.79 million.

Savencia, a notable player in the French food industry, has shown impressive earnings growth of 114.7% over the past year, outpacing its industry peers. The company reported net income of €57.92M for H1 2024, up from €51.29M last year, with basic and diluted EPS rising to €4.33 from €3.8. Despite a one-off loss of €43.6M impacting recent financials, Savencia's debt-to-equity ratio improved to 69.5% from 88.6% over five years and EBIT covers interest payments by 32x.

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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