Yahoo Finance Thales Leads Trio Of Stocks Estimated Below Intrinsic Values On Euronext Paris
Amidst a backdrop of political shifts and economic uncertainties, the French market has shown resilience with the CAC 40 Index climbing 2.62%. In such an environment, identifying stocks that are potentially undervalued becomes crucial for investors looking to capitalize on discrepancies between market prices and intrinsic values.
Top 10 Undervalued Stocks Based On Cash Flows In France
Name | Current Price | Fair Value (Est) | Discount (Est) |
Antin Infrastructure Partners SAS (ENXTPA:ANTIN) | €12.10 | €15.50 | 21.9% |
Wavestone (ENXTPA:WAVE) | €57.00 | €92.78 | 38.6% |
Thales (ENXTPA:HO) | €153.85 | €266.77 | 42.3% |
Tikehau Capital (ENXTPA:TKO) | €22.55 | €32.66 | 31% |
ENENSYS Technologies (ENXTPA:ALNN6) | €0.55 | €1.09 | 49.3% |
Vivendi (ENXTPA:VIV) | €10.09 | €16.11 | 37.4% |
Lectra (ENXTPA:LSS) | €30.70 | €44.28 | 30.7% |
Figeac Aero Société Anonyme (ENXTPA:FGA) | €5.88 | €10.10 | 41.8% |
Groupe Airwell Société anonyme (ENXTPA:ALAIR) | €3.88 | €6.28 | 38.2% |
Esker (ENXTPA:ALESK) | €183.80 | €259.66 | 29.2% |
Underneath we present a selection of stocks filtered out by our screen
Thales
Overview: Thales S.A. is a global company offering a range of solutions in defense, aerospace, digital identity and security, and transportation sectors, with a market capitalization of approximately €31.80 billion.
Operations: The company generates revenue across three primary segments: €10.18 billion from Defense & Security (excluding Digital Identity & Security), €5.34 billion from Aerospace, and €3.42 billion from Digital Identity & Security.
Estimated Discount To Fair Value: 42.3%
Thales, priced at €153.85, is currently undervalued by 42.3% against a fair value estimate of €266.77, signaling potential for investors focused on cash flow metrics. Despite an unstable dividend track record and significant one-off items impacting earnings, Thales shows promise with its forecasted revenue growth of 6.3% per year—outpacing the French market's 5.7%. Recent strategic alliances and product launches in cybersecurity and digital services could enhance its market position, although high debt levels warrant caution.
Tikehau Capital
Overview: Tikehau Capital is a private equity and venture capital firm that offers a diverse portfolio of financing products, such as senior secured loans, equity, and mezzanine; it has a market capitalization of approximately €3.90 billion.
Operations: The company generates revenue through two main segments: Investment Activities, which brought in €179.19 million, and Asset Management Activities, contributing €322.32 million.
Estimated Discount To Fair Value: 31%
Tikehau Capital, trading at €22.55, is significantly undervalued by over 30% compared to its fair value estimate of €32.66. With earnings forecasted to grow by 30.9% annually, it outpaces the French market's 10.9%. However, its dividend coverage by cash flows remains weak. Recent strategic developments include a partnership with Nikko Asset Management aimed at enhancing distribution and investment capabilities in Asia, signaling potential growth avenues despite current profit margin pressures from the previous year.
Vivendi
Overview: Vivendi SE, with a market cap of €10.34 billion, is a diverse entertainment, media, and communication company operating across France, Europe, the Americas, Asia/Oceania, and Africa.
Operations: The company's revenue is primarily generated through Canal + Group at €6.06 billion, followed by Havas Group at €2.87 billion, Lagardère at €0.67 billion, Gameloft at €0.31 billion, Prisma Media at €0.31 billion, Vivendi Village at €0.18 billion, and New Initiatives contributing €0.15 billion.
Estimated Discount To Fair Value: 37.4%
Vivendi, priced at €10.09, trades significantly below its estimated fair value of €16.11, reflecting a substantial undervaluation. The company's earnings are poised to grow by 29.26% annually, outperforming the French market's projection of 10.9%. Despite recent revenue growth to €4.275 billion in Q1 2024 from €2.290 billion the previous year and a forecasted annual revenue increase of 18.5%, concerns linger over its low forecasted return on equity of 5.9% and unstable dividend history, with a recent payout of €0.25 per share confirmed for fiscal year 2023.
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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:HOENXTPA:TKOENXTPA:VIV and
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