Stock Analysis

Uncovering Sidetrade And 2 Other Hidden Small Caps with Strong Potential

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As European markets navigate a mixed landscape, with the pan-European STOXX Europe 600 Index ending slightly higher and France's CAC 40 Index experiencing minor losses, investors are increasingly on the lookout for promising small-cap stocks that might be flying under the radar. In this environment, identifying companies with strong fundamentals, innovative business models, and solid growth potential can be particularly rewarding. In this article, we uncover Sidetrade and two other hidden small caps in France that exhibit these promising attributes.

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%★★★★★★
Société des Chemins de Fer et Tramways du Var et du GardNAnan-2.95%★★★★★★
VIEL & Cie société anonyme63.16%5.00%16.26%★★★★★☆
Exacompta Clairefontaine30.44%6.92%31.73%★★★★★☆
ADLPartner86.83%9.59%11.00%★★★★★☆
La Forestière Equatoriale0.00%-50.76%49.41%★★★★★☆
Fiducial Real Estate33.77%1.63%3.30%★★★★☆☆
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 36 stocks from our Euronext Paris Undiscovered Gems With Strong Fundamentals screener.

Here's a peek at a few of the choices from the screener.

Sidetrade (ENXTPA:ALBFR)

Simply Wall St Value Rating: ★★★★★☆

Overview: Sidetrade SA offers an AI-driven order-to-cash software as a service platform in France and internationally, with a market cap of €265.20 million.

Operations: Revenue for Sidetrade SA primarily comes from its AI-powered order-to-cash software and programming segment, generating €43.96 million. The company's market cap stands at €265.20 million.

Sidetrade has shown impressive growth, with earnings up 66.7% over the past year, outpacing the software industry’s 9.9%. Trading at 16.9% below its estimated fair value, Sidetrade appears undervalued. Recent innovations like 'Ask Aimie,' a generative AI feature, are enhancing user experience and operational efficiency. Revenue for the first half of 2024 reached €24.8 million, compared to €20.9 million last year, reflecting strong performance and promising future prospects in AI-driven finance solutions.

ENXTPA:ALBFR Earnings and Revenue Growth as at Jul 2024

Malteries Franco-Belges Société Anonyme (ENXTPA:MALT)

Simply Wall St Value Rating: ★★★★★★

Overview: Malteries Franco-Belges Société Anonyme engages in the production and sale of malt primarily for brewers in France and internationally, with a market cap of €300.07 million.

Operations: Revenue for Malteries Franco-Belges Société Anonyme primarily comes from its Malt Factory segment, generating €141.70 million. The company has a market cap of €300.07 million.

Malteries Franco-Belges Société Anonyme, a small French company, boasts a compelling financial profile. Its price-to-earnings ratio of 7.9x is significantly lower than the French market average of 15.3x, indicating potential undervaluation. Impressively, MALT's earnings surged by 162% in the past year, far outpacing the Food industry’s growth rate of 102%. Additionally, its debt to equity ratio has dropped from 2.4% to zero over five years, highlighting strong financial management and stability.

ENXTPA:MALT Earnings and Revenue Growth as at Jul 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 €484.02 million.

Operations: Revenue streams for Roche Bobois S.A. include Corporate (€4.14 million), Cuir Center (€43.39 million), Roche Bobois France (€118.72 million), Roche Bobois USA/Canada (€150.21 million), Roche Bobois Overseas (€7.23 million), and Roche Bobois Europe excluding France (€105.94 million).

Roche Bobois, a notable French furniture company, has seen its earnings grow 34.9% annually over the past five years. Trading at 35.4% below its estimated fair value, it appears undervalued. The company's debt to equity ratio improved from 39.5% to 33.4%, and it holds more cash than total debt, indicating strong financial health. Additionally, Roche Bobois recently launched a share repurchase program worth €10 million at €60 per share in April 2024.

ENXTPA:RBO Debt to Equity as at Jul 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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