Discovering France's Undiscovered Gems This August 2024
As the French market navigates a period of mixed signals, with the CAC 40 Index adding 0.25% amid economic uncertainties, investors are increasingly looking towards small-cap stocks for potential opportunities. In this landscape, identifying strong fundamentals and growth prospects becomes crucial for uncovering hidden gems that can thrive despite broader market volatility.
Top 10 Undiscovered Gems With Strong Fundamentals In France
Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
Caisse Régionale de Crédit Agricole Mutuel Brie Picardie Société coopérative | 34.89% | 3.23% | 3.61% | ★★★★★★ |
Gévelot | 0.25% | 10.64% | 20.33% | ★★★★★★ |
EssoF | 1.19% | 11.14% | 41.41% | ★★★★★★ |
VIEL & Cie société anonyme | 63.16% | 5.00% | 16.26% | ★★★★★☆ |
Exacompta Clairefontaine | 30.44% | 6.92% | 31.73% | ★★★★★☆ |
ADLPartner | 86.83% | 9.59% | 11.00% | ★★★★★☆ |
La Forestière Equatoriale | 0.00% | -50.76% | 49.41% | ★★★★★☆ |
Caisse Régionale de Crédit Agricole Mutuel Alpes Provence Société coopérative | 391.01% | 4.67% | 17.31% | ★★★★☆☆ |
Société Fermière du Casino Municipal de Cannes | 11.60% | 6.69% | 10.30% | ★★★★☆☆ |
Société Industrielle et Financière de l'Artois Société anonyme | 2.93% | -1.09% | 8.31% | ★★★★☆☆ |
Below we spotlight a couple of our favorites from our exclusive screener.
Akwel
Simply Wall St Value Rating: ★★★★★★
Overview: Akwel SA manufactures automotive and heavy goods vehicle components in France and internationally, with a market cap of €282.32 million.
Operations: Akwel generates revenue primarily from the production and delivery of components, parts, or functions for the automobile sector, amounting to €1.07 billion.
Akwel, a notable player in the auto components sector, has shown impressive growth with earnings up 41.5% over the past year, far outpacing the industry average of -10.3%. The company’s debt to equity ratio has significantly improved from 29.4% to 5.9% over five years, and it holds more cash than total debt. Its P/E ratio stands at a favorable 7.9x compared to the French market's 14.6x, indicating potential undervaluation.
Click here and access our complete health analysis report to understand the dynamics of Akwel.
Gain insights into Akwel's historical performance by reviewing our past performance report.
Neurones
Simply Wall St Value Rating: ★★★★★☆
Overview: Neurones S.A. is an IT services company that offers infrastructure, application, and consulting services in France and internationally, with a market cap of €1.03 billion.
Operations: Neurones generates revenue primarily from Infrastructure Services (€468.49 million), Application Services (€219.47 million), and Consulting (€53.21 million).
Neurones, an IT services firm, has seen its earnings grow by 11.7% over the past year, outpacing the broader industry’s -9.9%. The company is trading at 16.3% below our fair value estimate and boasts high-quality past earnings. Over five years, its debt-to-equity ratio increased from 0.1 to 1.8 while maintaining more cash than total debt. Recent guidance forecasts €800 million in revenues for 2024 with an operating profit around 9.5%.
VIEL & Cie société anonyme
Simply Wall St Value Rating: ★★★★★☆
Overview: VIEL & Cie, société anonyme, is an investment company that offers interdealer broking, online trading, and private banking services across Europe, the Middle East, Africa, the Americas, and the Asia-Pacific region with a market cap of €612.29 million.
Operations: VIEL & Cie derives its revenue primarily from professional intermediation (€1.01 billion) and stock exchange online activities (€65.12 million). The company experiences a minor negative contribution from property and other activities (-€0.14 million).
VIEL & Cie société anonyme, a promising entity in the financial sector, has seen its earnings grow by 33.4% over the past year, outpacing the Capital Markets industry’s 29.3%. The company trades at 39% below its estimated fair value and boasts high-quality earnings. Over the last five years, VIL's debt to equity ratio improved from 85.1% to 63.2%, indicating better financial health while maintaining more cash than total debt.
Where To Now?
Click this link to deep-dive into the 35 companies within our Euronext Paris Undiscovered Gems With Strong Fundamentals screener.
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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.
Companies discussed in this article include ENXTPA:AKW ENXTPA:NRO and ENXTPA:VIL.
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