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As the European economy shows signs of revitalization, particularly with the Paris Olympics driving business activity, investors are keenly observing opportunities on Euronext Paris. With major indices like France's CAC 40 Index gaining momentum, it's an opportune time to consider stocks that might be undervalued in this buoyant market environment. In such a setting, identifying stocks that have strong fundamentals but are currently trading below their intrinsic value can offer significant potential for growth. Here are three stocks on Euronext Paris that might be undervalued and worth your attention.
Top 10 Undervalued Stocks Based On Cash Flows In France
Name | Current Price | Fair Value (Est) | Discount (Est) |
SPIE (ENXTPA:SPIE) | €34.76 | €49.85 | 30.3% |
Vivendi (ENXTPA:VIV) | €9.96 | €18.07 | 44.9% |
MEMSCAP (ENXTPA:MEMS) | €6.34 | €9.47 | 33.1% |
Tikehau Capital (ENXTPA:TKO) | €22.50 | €32.16 | 30% |
Lectra (ENXTPA:LSS) | €27.50 | €51.92 | 47% |
Safran (ENXTPA:SAF) | €196.60 | €303.70 | 35.3% |
Guillemot (ENXTPA:GUI) | €5.58 | €9.01 | 38.1% |
Groupe Berkem Société anonyme (ENXTPA:ALKEM) | €3.04 | €5.09 | 40.3% |
EKINOPS (ENXTPA:EKI) | €3.49 | €5.50 | 36.5% |
OVH Groupe (ENXTPA:OVH) | €6.07 | €8.80 | 31% |
We're going to check out a few of the best picks from our screener tool.
Safran
Overview: Safran SA, with a market cap of €82.65 billion, operates globally in the aerospace and defense sectors through its subsidiaries.
Operations: The company's revenue segments include €2.73 billion from Aircraft Interiors, €12.66 billion from Aerospace Propulsion, and €9.91 billion from Aeronautical Equipment, Defense and Aerosystems.
Estimated Discount To Fair Value: 35.3%
Safran SA reported H1 2024 revenue of €13.41 billion, up from €11.36 billion a year ago, but net income dropped to €57 million from €1.86 billion due to increased costs and investments. Despite lower profit margins, Safran is trading at 35% below its estimated fair value of €303.7 per share and is expected to grow earnings by 21% annually over the next three years, outpacing the French market's growth rate.
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The analysis detailed in our Safran growth report hints at robust future financial performance.
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Click to explore a detailed breakdown of our findings in Safran's balance sheet health report.
SPIE
Overview: SPIE SA offers multi-technical services in energy and communications across France, Germany, the Netherlands, and internationally, with a market cap of €5.80 billion.
Operations: Revenue segments include €1.89 billion from North-Western Europe and €684.90 million from Global Services Energy.