Stock Analysis

Axway Software And 2 Undiscovered Gems In France With Strong Fundamentals

ENXTPA:EXPL
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As global markets grapple with rising geopolitical tensions and economic uncertainties, the French market has experienced notable declines, with the CAC 40 Index dropping by over 3% amid cautious investor sentiment. In this environment, identifying stocks with strong fundamentals becomes crucial for navigating volatility and uncovering potential opportunities.

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%★★★★★★
Caisse Régionale de Crédit Agricole Mutuel Nord de France Société coopérative10.84%3.22%6.38%★★★★★★
EssoF1.19%11.14%41.41%★★★★★★
Gévelot0.25%10.64%20.33%★★★★★★
ADLPartner82.84%9.86%16.18%★★★★★☆
VIEL & Cie société anonyme54.02%5.66%19.86%★★★★★☆
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 36 stocks from our Euronext Paris Undiscovered Gems With Strong Fundamentals screener.

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

Axway Software (ENXTPA:AXW)

Simply Wall St Value Rating: ★★★★★☆

Overview: Axway Software SA is an infrastructure software publisher operating across France, the rest of Europe, the Americas, and the Asia Pacific with a market capitalization of approximately €714.54 million.

Operations: Axway Software generates revenue primarily through its Subscription segment (€201.19 million), followed by Maintenance (€77.04 million), Services excluding Subscription (€35.49 million), and License sales (€8.46 million).

Axway Software, a smaller player in the tech field, has shown resilience with its EBIT covering interest payments 10.1 times over. Despite a net debt to equity ratio of 19.9%, which remains satisfactory, shareholders faced dilution last year. The company's recent profitability and high-quality earnings are promising, though net income slipped slightly from €3.7 million to €2.8 million for the half-year ending June 2024. Axway's P/E ratio of 20.5x suggests it offers good value compared to industry peers at 28.3x.

ENXTPA:AXW Earnings and Revenue Growth as at Oct 2024
ENXTPA:AXW Earnings and Revenue Growth as at Oct 2024

EssoF (ENXTPA:ES)

Simply Wall St Value Rating: ★★★★★★

Overview: Esso S.A.F. engages in refining, distributing, and marketing refined petroleum products across France and internationally, with a market capitalization of approximately €1.70 billion.

Operations: Esso S.A.F. generates revenue primarily from its refining and distribution segment, which accounted for €18.93 billion. The company focuses on these core activities to drive its financial performance.

EssoF, a smaller player in the oil and gas sector, showcases an intriguing profile with its debt to equity ratio improving from 5.8 to 1.2 over five years. The company has become profitable this year, outpacing the industry's growth rate of -0.5%. Despite recent earnings showing a dip in net income from €265.6M to €116M for half-year results, EssoF trades at 96.5% below estimated fair value, suggesting potential undervaluation opportunities for investors exploring niche markets within France's energy landscape.

ENXTPA:ES Debt to Equity as at Oct 2024
ENXTPA:ES Debt to Equity as at Oct 2024

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 capitalization of €378.61 million.

Operations: EPC Groupe generates revenue primarily from its Specialty Chemicals segment, amounting to €487.56 million. The company operates with a market capitalization of €378.61 million.

EPC Groupe, a smaller player in the industry, showcases high-quality earnings and a positive free cash flow of €38.12 million as of June 2024. Despite its volatile share price recently, it's trading at 55.6% below estimated fair value, suggesting potential undervaluation. The company’s net debt to equity ratio is high at 42.6%, with interest coverage by EBIT being less than ideal at 2.9x, indicating some financial pressure despite strong earnings growth of 17.4% over the past year.

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