Stock Analysis

Undiscovered Gems In France To Watch This September 2024

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As the European Central Bank's recent interest rate cut buoyed sentiment, France's CAC 40 Index saw a modest gain of 1.54%, reflecting cautious optimism amidst signs of weakening economic growth and slowing inflation in the eurozone. In this environment, identifying promising small-cap stocks becomes crucial for investors looking to uncover hidden gems. A good stock in such a market is often characterized by strong fundamentals, innovative business models, and resilience to economic fluctuations—qualities that are particularly relevant given the current economic indicators and broader market sentiment.

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%★★★★★★
VIEL & Cie société anonyme72.14%5.72%19.86%★★★★★☆
Exacompta Clairefontaine30.44%6.92%31.73%★★★★★☆
ADLPartner86.83%9.59%11.00%★★★★★☆
CFM Indosuez Wealth Management239.60%10.01%13.52%★★★★★☆
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 32 stocks from our Euronext Paris Undiscovered Gems With Strong Fundamentals screener.

We'll examine a selection from our screener results.

Caisse Régionale de Crédit Agricole Mutuel du Languedoc Société coopérative (ENXTPA:CRLA)

Simply Wall St Value Rating: ★★★★★★

Overview: Caisse Régionale de Crédit Agricole Mutuel du Languedoc Société coopérative offers a range of banking products and services to diverse clients in France, with a market cap of €919.62 million.

Operations: Caisse Régionale de Crédit Agricole Mutuel du Languedoc Société coopérative generates revenue through its diverse banking products and services offered to various client segments in France. The company has a market cap of €919.62 million.

With total assets of €35.3B and equity of €5.2B, Caisse Régionale de Crédit Agricole Mutuel du Languedoc Société coopérative stands out for its robust balance sheet. Customer deposits, a low-risk funding source, make up 94% of liabilities, while total loans are at €29.0B and deposits at €28.2B. Bad loans are well-managed at 1.4%, with a sufficient allowance covering 133%. Earnings growth over the past year was modest at 1.3%, surpassing the industry average of -4.9%.

ENXTPA:CRLA Earnings and Revenue Growth 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 €391.71 million.

Operations: Linedata Services generates revenue primarily from the sale of financial software across various regions, including Southern Europe, Northern Europe, North America, and Asia. The company's market cap stands at €391.71 million.

Linedata Services, a smaller player in the software industry, reported half-year sales of €89.69 million and net income of €10.55 million, up from €87.47 million and €8.48 million respectively last year. Basic earnings per share rose to €2.13 from €1.71 previously. The company's debt to equity ratio stands at 40%, indicating a high level of debt, yet its interest payments are well covered by EBIT at 9x coverage, reflecting solid financial health despite the leverage.

ENXTPA:LIN Earnings and Revenue Growth as at Sep 2024

Malteries Franco-Belges Société Anonyme (ENXTPA:MALT)

Simply Wall St Value Rating: ★★★★★★

Overview: Malteries Franco-Belges Société Anonyme specializes in the production and sale of malt for brewers both in France and internationally, with a market cap of €322.39 million.

Operations: The company generates revenue primarily from its malt factory, amounting to €141.70 million.

Malteries Franco-Belges Société Anonyme, a smaller player in the brewing industry, has shown impressive financial health and growth. Over the past year, its earnings grew by 162%, significantly outpacing the food industry's 39%. The company's debt-to-equity ratio dropped from 2.4 to zero over five years, indicating strong financial management. Additionally, with a Price-To-Earnings ratio of 8.5x compared to the French market's 14.7x, it appears undervalued despite its high-quality earnings and positive free cash flow.

ENXTPA:MALT Earnings and Revenue Growth 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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