Undiscovered Gems In France To Explore October 2024

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As the European markets experience a modest uptick, with France's CAC 40 Index adding 0.48% amid hopes for quicker ECB rate cuts, investors are increasingly looking towards small-cap stocks that might offer unique opportunities in this evolving economic landscape. In this context, identifying stocks with strong fundamentals and growth potential can be particularly rewarding, especially when broader market sentiment supports strategic investments in underappreciated sectors.

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%

★★★★★★

Caisse Régionale de Crédit Agricole Mutuel Nord de France Société coopérative

10.84%

3.22%

6.38%

★★★★★★

EssoF

1.19%

11.14%

41.41%

★★★★★★

Gévelot

0.25%

10.64%

20.33%

★★★★★★

ADLPartner

82.84%

9.86%

16.18%

★★★★★☆

VIEL & Cie société anonyme

54.02%

5.66%

19.86%

★★★★★☆

Caisse Regionale de Credit Agricole Mutuel Toulouse 31

14.94%

0.59%

5.95%

★★★★★☆

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%

★★★★☆☆

Click here to see the full list of 39 stocks from our Euronext Paris Undiscovered Gems With Strong Fundamentals screener.

Here we highlight a subset of our preferred stocks from the screener.

Axway Software

Simply Wall St Value Rating: ★★★★★☆

Overview: Axway Software SA is an infrastructure software publisher operating in France, the rest of Europe, the Americas, and the Asia Pacific with a market cap of €720.35 million.

Operations: Axway Software SA generates its revenue primarily from Subscription (€201.19 million), Maintenance (€77.04 million), Services (Excl. Subscription) (€35.49 million), and License (€8.46 million) segments. The company's net profit margin is a key financial metric to consider when evaluating its profitability relative to revenue streams, offering insight into operational efficiency and cost management strategies without delving into specific percentages or historical trends over multiple periods.

Axway Software, a smaller player in the tech landscape, has turned profitable this year with high-quality earnings and a satisfactory net debt to equity ratio of 19.9%. Despite an increase in its debt to equity ratio from 12.5% to 24.6% over five years, its interest payments are well covered by EBIT at 10.1x coverage. Recently completing a €130 million follow-on equity offering, Axway targets ambitious growth with projected revenue reaching €700 million by 2025 and operating margins improving significantly.

ENXTPA:AXW Debt to Equity as at Oct 2024
ENXTPA:AXW Debt to Equity as at Oct 2024

Caisse Régionale de Crédit Agricole Mutuel Brie Picardie Société coopérative

Simply Wall St Value Rating: ★★★★★★

Overview: Caisse Régionale de Crédit Agricole Mutuel Brie Picardie Société coopérative offers a variety of banking and financial products and services to individuals, farmers, professionals, businesses, and public authorities in France with a market capitalization of approximately €967.79 million.

Operations: CRBP2 generates revenue primarily from its retail banking segment, which accounts for €625.99 million. The company's financial performance can be analyzed through its net profit margin, providing insights into profitability relative to total revenue.

Caisse Régionale de Crédit Agricole Mutuel Brie Picardie, a cooperative bank with total assets of €42.2 billion and equity of €5 billion, shows robust financial health. Its loans total €34.1 billion against deposits of €33.8 billion, reflecting efficient asset management. The bank's allowance for bad loans is a solid 115%, and its non-performing loan ratio stands at an appropriate 1.2%. Earnings growth outpaced the industry at 6.2%, supported by primarily low-risk funding sources comprising 91% customer deposits, highlighting stability in its operations.

ENXTPA:CRBP2 Debt to Equity as at Oct 2024
ENXTPA:CRBP2 Debt to Equity as at Oct 2024

EPC Groupe

Simply Wall St Value Rating: ★★★★☆☆

Overview: EPC Groupe is involved in the manufacture, storage, and distribution of explosives across Europe, Africa, Asia Pacific, and the Americas with a market capitalization of €393.33 million.

Operations: EPC Groupe generates revenue primarily from its Specialty Chemicals segment, amounting to €487.56 million.

EPC Groupe, a smaller player in the industry, showcases a mixed financial landscape. The company reported half-year sales of €242.42 million and net income of €12.52 million, reflecting stability compared to last year. Earnings per share from continuing operations slightly dipped to €5.94 from €5.98 previously. Despite trading 54% below its estimated fair value and achieving 17% earnings growth over the past year, interest coverage remains tight at 2.9 times EBIT, suggesting room for improvement in financial leverage management.

ENXTPA:EXPL Earnings and Revenue Growth as at Oct 2024
ENXTPA:EXPL Earnings and Revenue Growth as at Oct 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.

Companies discussed in this article include ENXTPA:AXW ENXTPA:CRBP2 and ENXTPA:EXPL.

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