Yahoo Finance Thales And Two More Stocks On Euronext Paris Seen As Below Estimated True Value
Amidst a backdrop of political shifts and economic uncertainties in Europe, the French stock market has shown resilience, with the CAC 40 Index recently climbing by 2.62%. This positive momentum in France’s major index suggests an environment where discerning investors might find opportunities, particularly in stocks that appear undervalued relative to their estimated true value.
Top 10 Undervalued Stocks Based On Cash Flows In France
Name | Current Price | Fair Value (Est) | Discount (Est) |
Antin Infrastructure Partners SAS (ENXTPA:ANTIN) | €11.78 | €15.52 | 24.1% |
Wavestone (ENXTPA:WAVE) | €57.50 | €92.88 | 38.1% |
Lectra (ENXTPA:LSS) | €29.70 | €44.19 | 32.8% |
Tikehau Capital (ENXTPA:TKO) | €22.25 | €32.65 | 31.8% |
Thales (ENXTPA:HO) | €151.95 | €265.52 | 42.8% |
Vivendi (ENXTPA:VIV) | €10.00 | €16.09 | 37.8% |
ENENSYS Technologies (ENXTPA:ALNN6) | €0.588 | €1.09 | 45.8% |
Figeac Aero Société Anonyme (ENXTPA:FGA) | €5.78 | €9.98 | 42.1% |
Groupe Airwell Société anonyme (ENXTPA:ALAIR) | €3.88 | €6.27 | 38.1% |
Esker (ENXTPA:ALESK) | €180.10 | €259.65 | 30.6% |
We're going to check out a few of the best picks from our screener tool
Thales
Overview: Thales S.A. is a global company offering solutions in defense and security, aerospace and space, digital identity and security, and transport sectors, with a market capitalization of approximately €31.40 billion.
Operations: Thales generates revenue through its aerospace segment at €5.34 billion, digital identity and security at €3.42 billion, and defense and security (excluding digital identity and security) at €10.18 billion.
Estimated Discount To Fair Value: 42.8%
Thales, trading at €151.95, significantly below its estimated fair value of €265.52, appears undervalued based on cash flow analysis. Despite a high level of debt and an unstable dividend track record, Thales' earnings are expected to grow by 16.44% annually, outpacing the French market's 10.8%. Recent strategic alliances and technological advancements in cybersecurity and air traffic management underscore its ongoing business expansion and innovation efforts, potentially enhancing future revenue streams despite current financial pressures from one-off items impacting results.
Tikehau Capital
Overview: Tikehau Capital is a private equity and venture capital firm that offers a variety of financing products such as senior secured loans, equity, and mezzanine; it has a market capitalization of approximately €3.85 billion.
Operations: The firm generates revenue primarily through two segments: Investment Activities at €179.19 million and Asset Management Activities at €322.32 million.
Estimated Discount To Fair Value: 31.8%
Tikehau Capital, priced at €22.25, is significantly undervalued with a fair value of €32.65 based on discounted cash flows. While its dividend coverage by cash flows is weak, earnings are expected to grow by 30.88% annually, outstripping the French market's 10.8%. Recent strategic moves include a partnership with Nikko Asset Management to enhance global investment capabilities and expand into Asian markets, which may bolster future performance despite current low return on equity forecasts and declining profit margins from the previous year.
Vivendi
Overview: Vivendi SE is a global entertainment, media, and communication company with operations across France, Europe, the Americas, Asia/Oceania, and Africa, boasting a market capitalization of €10.25 billion.
Operations: Vivendi'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: 37.8%
Vivendi, with a current price of €10, is undervalued by 37.8% against a fair value of €16.09, reflecting strong future prospects with analysts predicting a 33.7% potential price increase. Recent resolution of long-standing legal disputes removes significant uncertainties, potentially enhancing investor confidence. Despite this, its dividend record remains inconsistent and return on equity is expected to be low at 5.9%. However, revenue and earnings growth forecasts outpace the French market significantly, suggesting robust financial health ahead.
Seize The Opportunity
Click here to access our complete index of 14 Undervalued Euronext Paris Stocks Based On Cash Flows.
Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world.
Ready For A Different Approach?
Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
