The European economy has recently seen a boost, with France's CAC 40 Index gaining 1.71% amid growing hopes for interest rate cuts by the Federal Reserve and the European Central Bank. This positive sentiment, coupled with increased business activity driven by the upcoming Paris Olympics, sets an encouraging backdrop for investors looking at growth companies. In this favorable environment, stocks with high insider ownership can be particularly attractive as they often indicate management's confidence in their company's future prospects.
Top 10 Growth Companies With High Insider Ownership In France
Overview: Lectra SA offers industrial intelligence solutions for the fashion, automotive, and furniture markets across Northern Europe, Southern Europe, the Americas, and the Asia Pacific with a market cap of €1.04 billion.
Operations: The company generates revenue from the Americas (€172.65 million), Asia-Pacific (€118.54 million), and segment adjustments (€209.13 million).
Insider Ownership: 19.6%
Earnings Growth Forecast: 29.3% p.a.
Lectra, a growth company with high insider ownership in France, reported half-year sales of €262.29 million, up from €239.55 million last year, though net income decreased to €12.51 million from €14.47 million. Trading at 47% below its estimated fair value and expected to grow earnings by 29.3% annually—outpacing the French market's 12.3%—Lectra’s revenue is forecasted to rise by 10.4% per year, surpassing the market's 5.8%.
Overview: MedinCell S.A. is a pharmaceutical company in France that develops long-acting injectables across various therapeutic areas, with a market cap of €524.16 million.
Operations: MedinCell generates €11.95 million in revenue from its pharmaceuticals segment.
Insider Ownership: 15.8%
Earnings Growth Forecast: 93.9% p.a.
MedinCell, with significant insider ownership, is forecasted to see its revenue grow by 46.2% annually, far outpacing the French market's 5.8%. Analysts agree on a potential stock price rise of 22.3%, and it trades at 86.9% below its estimated fair value. Despite a net loss of €25.04 million for the year ending March 31, 2024—down from €32.01 million last year—the company is expected to become profitable within three years.
Overview: Eurazeo SE is a private equity and venture capital firm that focuses on growth capital, acquisitions, leveraged buyouts, and investments in mid-market and listed public companies, with a market cap of approximately €5.20 billion.
Operations: The firm's revenue segments include Private Equity (€1.23 billion), Real Assets (€0.87 billion), and Private Debt (€0.56 billion).
Insider Ownership: 12.1%
Earnings Growth Forecast: 49.9% p.a.
Eurazeo, a growth company with high insider ownership in France, reported H1 2024 sales of €180.71 million but faced a net loss of €104.56 million compared to last year's net income of €1.80 billion. Despite this, analysts forecast revenue growth at 47.4% annually and expect the company to become profitable within three years. The stock is trading at 83.9% below its estimated fair value, with an anticipated price rise of 28.2%.
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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.The analysis only considers stock directly held by insiders. It does not include indirectly owned stock through other vehicles such as corporate and/or trust entities. All forecast revenue and earnings growth rates quoted are in terms of annualised (per annum) growth rates over 1-3 years.
Companies discussed in this article include ENXTPA:LSS ENXTPA:MEDCL and ENXTPA:RF.
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