Stock Analysis

Groupe CRIT And 2 Other Undiscovered Gems with Strong Financials

ENXTPA:LIN
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As the European Central Bank's recent rate cut and signs of economic stabilization lift investor sentiment, France's market is showing resilience. Amid this backdrop, small-cap stocks with robust financials are drawing attention for their potential to thrive. In this article, we explore three such undiscovered gems in France, including Groupe CRIT. A good stock in the current market climate often exhibits strong fundamentals and financial stability, making these companies noteworthy candidates for consideration.

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%★★★★★★
Exacompta Clairefontaine30.44%6.92%31.73%★★★★★☆
ADLPartner86.83%9.59%11.00%★★★★★☆
VIEL & Cie société anonyme72.14%5.72%19.86%★★★★★☆
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.

We're going to check out a few of the best picks from our screener tool.

Groupe CRIT (ENXTPA:CEN)

Simply Wall St Value Rating: ★★★★★★

Overview: Groupe CRIT SA operates in the temporary work and recruitment sector both in France and internationally, with a market cap of €663.84 million.

Operations: Revenue for Groupe CRIT SA primarily comes from its Temporary Work and Recruitment segment, generating €2.06 billion, followed by Airport Assistance at €385.84 million and Other Services at €118.27 million.

Groupe CRIT, a notable player in the staffing and outsourcing industry, reported half-year sales of €1.39 billion, up from €1.24 billion the previous year. However, net income dipped to €24.8 million from €28.9 million a year ago. Despite this, the company is trading at 71% below its estimated fair value and has reduced its debt-to-equity ratio significantly over five years from 27% to 6%. Earnings are forecasted to grow annually by 9.63%.

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

Linedata Services (ENXTPA:LIN)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Linedata Services S.A. develops, publishes, and distributes financial software across Southern Europe, Northern Europe, North America, and Asia with a market cap of €396.67 million.

Operations: Linedata Services generates revenue primarily from the development, publication, and distribution of financial software across multiple regions. The company operates with a market cap of €396.67 million.

Linedata Services, a smaller player in the software industry, has seen its debt to equity ratio reduce from 82.5% to 77.9% over the past five years. Recent earnings growth of 22%, surpassing the industry's 10.6%, underscores its robust performance. Trading at roughly 30.7% below estimated fair value, LIN appears attractively priced relative to peers. Net income for H1-2024 was EUR10.55M compared to EUR8.48M last year, with basic earnings per share rising from EUR1.71 to EUR2.13.

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

Malteries Franco-Belges Société Anonyme (ENXTPA:MALT)

Simply Wall St Value Rating: ★★★★★★

Overview: Malteries Franco-Belges Société Anonyme focuses on producing and selling malt for brewers both in France and internationally, with a market cap of €332.31 million.

Operations: Malteries Franco-Belges Société Anonyme generates revenue primarily from its malt factory, which reported €141.70 million in sales. Its market cap stands at €332.31 million.

Malteries Franco-Belges Société Anonyme, a small French company, has shown impressive financial performance recently. Earnings grew by 162% over the past year, significantly outpacing the Food industry’s 39%. The debt to equity ratio improved from 2.4 to zero over five years, indicating strong financial management. Additionally, its price-to-earnings ratio of 8.8x is notably lower than the French market average of 14.8x, suggesting potential undervaluation for investors seeking growth opportunities in niche sectors.

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

Taking Advantage

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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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