The French stock market has been buoyed by optimism surrounding potential interest rate cuts from both the Federal Reserve and the European Central Bank, with the CAC 40 Index gaining 1.71% recently. As economic activity in France picks up, particularly driven by events like the Paris Olympics, investors are increasingly looking at growth companies with high insider ownership as potential opportunities. In this favorable market environment, stocks with significant insider ownership often signal strong confidence from those who know the company best—its executives and board members. Here are three such growth companies listed on Euronext Paris that have captured attention for their high levels of insider investment.
Top 10 Growth Companies With High Insider Ownership In France
Overview: Lectra SA provides 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 €1.06 billion.
Operations: Revenue segments for the company include €172.65 million from the Americas and €118.54 million from the Asia-Pacific region, with a segment adjustment of €209.13 million.
Insider Ownership: 19.6%
Lectra is a growth company with high insider ownership, forecasted to grow its earnings by 29.3% annually, outpacing the French market's 12.2%. Despite recent earnings showing a decline in net income to €12.51 million from €14.47 million year-over-year, revenue increased to €262.29 million from €239.55 million. Analysts expect the stock price to rise by 24%, and it trades at 46.3% below fair value estimates, though its future Return on Equity is forecasted at a modest 13.2%.
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 €5.17 billion.
Operations: Revenue Segments (in millions of €): {Segment Adjustment: 354} Eurazeo SE generates its revenue through private equity and venture capital investments, specializing in growth capital, acquisitions, leveraged buyouts, and buy-ins of private companies as well as mid-market and listed public companies.
Insider Ownership: 12.1%
Eurazeo, expected to become profitable within three years with earnings growth forecasted at 49.87% annually, is trading at 84% below its estimated fair value. Despite a recent net loss of €104.56 million for H1 2024, revenue grew to €180.71 million from €171.18 million year-over-year. Analysts anticipate a stock price increase of 29%. The company recently completed a share buyback totaling €109 million for 1,399,518 shares (1.9%).
Overview: VusionGroup S.A. offers digitalization solutions for commerce across Europe, Asia, and North America with a market cap of €2.19 billion.
Operations: The company's revenue segment includes €801.96 million from installing and maintaining electronic shelf labels.
Insider Ownership: 13.4%
VusionGroup, a growth company with high insider ownership in France, has seen substantial earnings growth of 320.8% over the past year and is expected to grow its revenue by 21.3% annually over the next three years. Recent partnerships with Ace Hardware and Hy-Vee highlight its innovative digital shelf label technology, enhancing operational efficiencies and customer experience. Analysts forecast VusionGroup's earnings to grow significantly faster than the French market average at 25.7% per year, with a projected stock price increase of 41.1%.
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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:RF and ENXTPA:VU.
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