Euronext Paris shares expected to trade below value in June 2024

While global markets are showing mixed trends, the French CAC 40 index has shown remarkable resilience, rising 1.67% amid expectations of loose monetary policy and declining political uncertainties. In this context of market optimism, identifying potentially undervalued stocks becomes particularly interesting for investors looking to capitalize on discrepancies between market price and intrinsic value.

The 10 most undervalued stocks in France based on cash flow

Click here to see the full list of 13 stocks from our Undervalued Euronext Paris Stocks Based on Cash Flows screener.

Below we present some of our favorites from our exclusive screener

Overview: Esker SA is a company that provides a cloud-based platform for financial and customer service professionals worldwide and has a market capitalization of approximately €1.04 billion.

Operations: The company generates sales of 190.92 million euros in the software and programming sector.

Estimated discount to fair value: 28.3%

French company Esker appears to be undervalued based on cash flow analysis. It is trading at €175.80, while the estimated fair value is €245.03 – a deviation of 28.3%. Despite a recent dividend cut to €0.65 per share, representing a 15% decline, Esker’s earnings are expected to grow 25.76% annually over the next three years, significantly outperforming the average growth rate of the French market. In addition, the revenue growth forecast of 11.8% annually exceeds the market norm (5.8%), supported by robust governance and expansion strategies, as evidenced by recent board appointments and presentations at global conferences.

Overview: Antin Infrastructure Partners SAS is a private equity firm focused on infrastructure investments with a market capitalization of around EUR 1.98 billion.

Operations: The company’s turnover amounts to around 282.87 million euros, mainly from the asset management division.

Estimated discount to fair value: 28.8%

Antin Infrastructure Partners SAS is considered undervalued at €11.08, with a fair value estimated at €15.56, representing an upside potential of 28.8%. The company’s earnings are expected to grow 25.9% annually over the next three years, significantly outperforming the French market growth forecast. Despite recent shareholder dilution and dividends not well covered by earnings or cash flows, revenue growth forecasts remain strong at 12.7% per year, outperforming the French market average of 5.8%.

Overview: Lectra SA, with a market capitalization of €1.05 billion, provides industrial intelligence solutions for the fashion, automotive and furniture industries in regions such as Northern Europe, Southern Europe, the Americas and Asia-Pacific.

Operations: The company generates sales of €170.33 million and €110.28 million in the Americas and Asia-Pacific regions respectively.

Estimated discount to fair value: 35.6%

Currently trading at €27.80, Lectra SA is considered undervalued with an estimated fair value of €43.16, suggesting significant upside potential. The company’s earnings are expected to grow 28.6% annually over the next three years, beating the French market’s forecast of 10.9%. Despite a slight year-on-year decline in net income and earnings per share in Q1 2024, analysts forecast a significant price increase of 28.4%. Revenue growth is also strong, with an annual rate of 11.3%, beating the market average of 5.8%.

The central theses

Ready for a different approach?

This Simply Wall St article is of a general nature. We provide commentary based solely on historical data and analyst forecasts, using an unbiased methodology. Our articles are not intended as financial advice. They do not constitute a recommendation to buy or sell stocks, and do not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.

Do you have feedback on this article? Are you interested in the content? Contact us directly. Alternatively, send an email to [email protected]