As geopolitical tensions in the Middle East weigh on global markets, European indices, including France's CAC 40, have seen notable declines. Amidst this backdrop of uncertainty and cautious investor sentiment, growth companies with high insider ownership can offer a compelling proposition due to their potential alignment of interests between management and shareholders.
Top 10 Growth Companies With High Insider Ownership In France
Overview: Exclusive Networks SA is a global cybersecurity specialist focused on digital infrastructure, with a market cap of €2.14 billion.
Operations: The company's revenue is segmented into €480 million from APAC, €4.19 billion from EMEA, and €705 million from the Americas.
Insider Ownership: 13.1%
Earnings Growth Forecast: 33.5% p.a.
Exclusive Networks, currently valued at €2.2 billion in a proposed buyout by Clayton, Dubilier & Rice and Permira, is set to go private with a significant insider ownership of 66.7%. The deal offers €24.25 per share, including an exceptional distribution of €5.29 per share. Despite recent earnings declines and lower profit margins from last year, the company's earnings are expected to grow significantly at 33.53% annually over the next three years, outpacing the French market's growth rate.
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 €1.09 billion.
Operations: The company's revenue segments are comprised of €172.65 million from the Americas and €118.54 million from the Asia-Pacific region.
Insider Ownership: 19.6%
Earnings Growth Forecast: 29.3% p.a.
Lectra is forecasted to experience significant earnings growth at 29.3% annually over the next three years, surpassing the French market's rate. Its revenue is expected to grow at 10.4% per year, outpacing the broader market but below high-growth thresholds. Despite a recent drop from the S&P Global BMI Index, Lectra trades at 45.9% below its estimated fair value and reported half-year sales of €262.29 million with a slight decline in net income compared to last year.
Overview: OVH Groupe S.A. is a global provider of public and private cloud services, shared hosting, and dedicated server solutions with a market cap of approximately €1.27 billion.
Operations: The company's revenue segments include Public Cloud services generating €169.01 million, Private Cloud services contributing €589.61 million, and Web cloud & Other solutions bringing in €185.43 million.
Insider Ownership: 10.5%
Earnings Growth Forecast: 101.4% p.a.
OVH Groupe is projected to achieve profitability within three years, with earnings growth expected at 101.37% annually, surpassing the average market rate. Although its revenue growth of 9.7% per year is slower than high-growth benchmarks, it exceeds the French market's average. The stock trades at 43.7% below estimated fair value but has experienced high share price volatility recently. No significant insider trading activity has been reported over the past three months.
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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:EXN ENXTPA:LSS and ENXTPA:OVH.
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