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Estimated Discount To Fair Value: 48.8%

Lectra, trading at €24.3 and significantly below its fair value of €47.47, presents a strong case for undervaluation based on cash flows. Earnings are projected to grow at 20.9% annually, surpassing the French market's growth rate of 12.1%. However, revenue growth is slower at 6% per year. Recent expansion into new markets with Valia Fashion enhances operational efficiency and could drive future revenue increases despite current modest sales performance and low return on equity forecasts (12.5%).

• The analysis detailed in our Lectra growth report hints at robust future financial performance.

• Navigate through the intricacies of Lectra with our comprehensive financial health report here.

Fagerhult Group

Overview: Fagerhult Group AB, along with its subsidiaries, designs, manufactures, and markets professional lighting solutions globally and has a market cap of SEK7.72 billion.

Operations: The company's revenue segments include Premium at SEK2.77 billion, Collection at SEK3.72 billion, Professional at SEK1.02 billion, Infrastructure at SEK821.10 million, and Smart Solutions at SEK14.40 million.

Estimated Discount To Fair Value: 41.8%

Fagerhult Group, trading at SEK 43.8 and over 20% below its fair value of SEK 75.22, appears undervalued based on cash flows. Despite a recent dip in Q1 earnings and net income, the company anticipates annual profit growth of 24.1%, outpacing the Swedish market's average growth rate. However, profit margins have declined from last year, and dividend sustainability remains questionable due to an unstable track record and recent decreases.

• According our earnings growth report, there's an indication that Fagerhult Group might be ready to expand.

• Take a closer look at Fagerhult Group's balance sheet health here in our report.

Summing It All Up

• Explore the 173 names from our Undervalued European Stocks Based On Cash Flows screener here.

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Curious About Other Options?

• 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 BIT:TNXT ENXTPA:LSS and OM:FAG.

This article was originally published by Simply Wall St.

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