As the French market navigates a period of mixed signals and cautious optimism, the CAC 40 Index has managed to eke out modest gains amidst broader economic concerns. With eurozone retail sales struggling and German industry showing signs of resilience, investors are keenly searching for opportunities that may be undervalued in this fluctuating environment. Identifying stocks estimated below fair value can be particularly advantageous during such times, as they offer potential for growth once market conditions stabilize.
Top 10 Undervalued Stocks Based On Cash Flows In France
Name
Current Price
Fair Value (Est)
Discount (Est)
SPIE (ENXTPA:SPIE)
€33.50
€49.70
32.6%
Tikehau Capital (ENXTPA:TKO)
€22.30
€33.11
32.6%
Vivendi (ENXTPA:VIV)
€9.446
€17.95
47.4%
MEMSCAP (ENXTPA:MEMS)
€6.11
€9.54
36%
Lectra (ENXTPA:LSS)
€25.95
€51.86
50%
Safran (ENXTPA:SAF)
€192.55
€317.29
39.3%
Guillemot (ENXTPA:GUI)
€5.46
€9.01
39.4%
EKINOPS (ENXTPA:EKI)
€3.49
€5.55
37.1%
Pullup Entertainment Société anonyme (ENXTPA:ALPUL)
Overview: Antin Infrastructure Partners SAS is a private equity firm that focuses on infrastructure investments, with a market cap of €2.28 billion.
Operations: Antin Infrastructure Partners SAS generates its revenue primarily through asset management, totaling €282.87 million.
Estimated Discount To Fair Value: 26.9%
Antin Infrastructure Partners SAS appears undervalued based on cash flows, trading at €12.74, significantly below its estimated fair value of €17.44. Despite recent shareholder dilution and a dividend not well covered by earnings or free cash flows, the company has become profitable this year and expects substantial annual profit growth (25.2%) over the next three years, outpacing the French market's 12.2% forecasted growth rate.
Overview: Safran SA, with a market cap of €80.94 billion, operates globally in the aerospace and defense sectors through its subsidiaries.
Operations: Safran's revenue segments include Aircraft Interiors (€2.73 billion), Aerospace Propulsion (€12.66 billion), and Aeronautical Equipment, Defense and Aerosystems (€9.91 billion).
Estimated Discount To Fair Value: 39.3%
Safran SA appears undervalued based on cash flows, trading at €192.55, well below its estimated fair value of €317.29. Despite a significant drop in net income to €57 million for H1 2024 from €1.86 billion a year ago, the company forecasts robust revenue growth (9.9% annually) and substantial earnings growth (20.6% annually). The potential acquisition of Preligens SAS for €220 million could further enhance its AI capabilities and digital transformation efforts, boosting future profitability and efficiency.
Overview: Vivendi SE is an entertainment, media, and communication company with operations across France, Europe, the Americas, Asia/Oceania, and Africa, holding a market cap of approximately €9.52 billion.
Operations: The company's revenue segments include Gameloft (€304 million), Havas Group (€2.92 billion), Prisma Media (€303 million), Canal+ Group (€6.20 billion), New Initiatives (€176 million), Vivendi Village (€151 million), and Segment Adjustment (€4.86 billion).
Estimated Discount To Fair Value: 47.4%
Vivendi SE, trading at €9.45, is significantly undervalued based on a fair value estimate of €17.95. Despite a slight dip in net income to €159 million for H1 2024 from €174 million the previous year, the company forecasts strong earnings growth of 30.58% annually over the next three years and revenue growth at 9.3% per year, both outpacing the French market averages. Recent buybacks and potential spinoff plans for Canal+ could further unlock shareholder value.
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:ANTIN ENXTPA:SAF and ENXTPA:VIV.
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