As the French market continues to show resilience, with the CAC 40 Index advancing by 2.48%, investors are increasingly looking for growth opportunities amidst a backdrop of potential interest rate cuts in Europe. In this environment, companies with high insider ownership often stand out as promising investments due to the alignment of interests between management and shareholders. When evaluating stocks in such a dynamic market, focusing on growth companies with significant insider ownership can provide additional confidence in their long-term potential and strategic direction.
Top 10 Growth Companies With High Insider Ownership In France
Overview: OVH Groupe S.A. offers public and private cloud services, shared hosting, and dedicated server solutions globally, with a market cap of approximately €1.15 billion.
Operations: The company's revenue segments include Public Cloud (€169.01 million), Private Cloud (€589.61 million), and Web Cloud & Other (€185.43 million).
Insider Ownership: 10.5%
OVH Groupe, a French cloud computing company, is forecasted to grow its revenue by 10% annually, outpacing the broader French market. Recent product announcements include the launch of third-generation Bare Metal Advance servers powered by AMD EPYC 4004 processors, enhancing performance and price efficiency. Despite a highly volatile share price recently and low expected return on equity (1.7%) in three years, OVH is trading at 31.4% below its estimated fair value and aims for significant earnings growth (101.12% per year).
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 €5.04 billion.
Operations: The firm's revenue segments include growth capital, acquisitions, leveraged buyouts, and investments in mid-market and listed public companies.
Insider Ownership: 12.1%
Eurazeo, a French investment firm, has substantial insider ownership and is trading at 84.6% below its estimated fair value. Despite a net loss of €104.56 million in H1 2024, revenue grew to €180.71 million from €171.18 million year-over-year. The company repurchased shares worth €109 million in H1 2024 and is forecasted to grow earnings by 29.03% annually, becoming profitable within three years with revenue growth expected at 45.2% per year—well above the market average.
Overview: VusionGroup S.A. offers digitalization solutions for commerce across Europe, Asia, and North America, with a market cap of €2.22 billion.
Operations: VusionGroup generates revenue primarily from installing and maintaining electronic shelf labels, amounting to €801.96 million.
Insider Ownership: 13.4%
VusionGroup, a growth company with high insider ownership, has seen its earnings grow by 320.8% over the past year and is forecasted to continue growing at 25.7% per year, outpacing the French market. Recent partnerships with Ace Hardware and Hy-Vee highlight its innovative digital shelf label technology, boosting operational efficiencies and enhancing customer experience across thousands of retail locations. Analysts agree on a potential stock price increase of 39.3%, reflecting strong future prospects driven by technological advancements and strategic collaborations.
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:OVH ENXTPA:RF and ENXTPA:VU.
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