While the French market is going through a period of mixed signals and cautious optimism, the CAC 40 index has managed to post modest gains despite broader economic concerns. With retail sales in the Eurozone weakening and German industry showing signs of resilience, investors are looking hard for opportunities that may be undervalued in this volatile environment. At such times, identifying stocks priced below fair value can be particularly beneficial as they offer growth potential once market conditions stabilize.
The 10 most undervalued stocks in France based on cash flow
| name | Current price | Fair value (estimated) | Discount (estimated) |
| 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% |
| Saffron (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 anonymous (ENXTPA:ALPUL) | 12,78 € | 19,63 € | 34.9% |
| OVH Group (ENXTPA:OVH) | 5,405 € | 8,54 € | 36.7% |
Click here to see the full list of 16 stocks from our Undervalued Euronext Paris Stocks Based on Cash Flows screener.
Let’s take a look at some of the best choices from the screener.
Overview: Antin Infrastructure Partners SAS is a private equity firm focused on infrastructure investments with a market capitalization of €2.28 billion.
Operations: Antin Infrastructure Partners SAS generates its turnover mainly through asset management and amounts to a total of 282.87 million euros.
Estimated discount to fair value: 26.9%
Antin Infrastructure Partners SAS appears to be undervalued on a cash flow basis, trading at €12.74, well below its estimated fair value of €17.44. Despite recent shareholder dilution and a dividend that is not covered by either earnings or free cash flow, the company has posted profits this year and expects significant annual earnings growth (25.2%) over the next three years, outperforming the French market’s forecast growth rate of 12.2%.
Overview: Safran SA has a market capitalization of EUR 80.94 billion and, through its subsidiaries, operates worldwide in the aerospace and defense sectors.
Operations: Safran’s sales segments include aircraft interiors (EUR 2.73 billion), aerospace propulsion (EUR 12.66 billion) and aerospace equipment, defense and systems (EUR 9.91 billion).
Estimated discount to fair value: 39.3%
Safran SA appears to be undervalued based on cash flows, trading at €192.55, well below its estimated fair value of €317.29. Despite a significant decline in net income from €1.86 billion last year to €57 million in H1 2024, the company forecasts robust revenue growth (9.9% annually) and significant earnings growth (20.6% annually). The potential acquisition of Preligens SAS for €220 million could further enhance AI capabilities and digital transformation efforts, increasing future profitability and efficiency.
Overview: Vivendi SE is an entertainment, media and communications company with offices in France, Europe, the Americas, Asia/Oceania and Africa and a market capitalization of around 9.52 billion euros.
Operations: The company’s revenue segments include Gameloft (EUR 304 million), Havas Group (EUR 2.92 billion), Prisma Media (EUR 303 million), Canal+ Group (EUR 6.20 billion), New Initiatives (EUR 176 million), Vivendi Village (EUR 151 million) and Segment Adjustment (EUR 4.86 billion).
Estimated discount to fair value: 47.4%
Vivendi SE is significantly undervalued at €9.45 based on an estimated fair value of €17.95. Despite a slight decline in net profit from €174 million last year to €159 million in the first half of 2024, the company forecasts strong profit growth of 30.58% annually and revenue growth of 9.3% annually over the next three years, both above the French market average. Recent buybacks and potential spin-off plans for Canal+ could further increase shareholder value.
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This Simply Wall St article is of a general nature. We comment 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.
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