The French stock market has recently experienced a notable uptick, with the CAC 40 Index advancing by 2.48% amid growing optimism for potential interest rate cuts. This positive sentiment provides a favorable backdrop for growth stocks, particularly those with strong insider ownership, which can indicate confidence from those closest to the company. In this context, companies like Lectra and two other high-growth stocks on Euronext Paris stand out as compelling considerations due to their robust performance and substantial insider stakes.
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 €1.03 billion.
Operations: Revenue segments (in millions of €) include: Americas: 172.65, Asia-Pacific: 118.54, and Segment Adjustment: 209.13.
Insider Ownership: 19.6%
Earnings Growth Forecast: 29.3% p.a.
Lectra SA, a French growth company with high insider ownership, reported half-year sales of €262.29 million, up from €239.55 million last year. However, net income fell to €12.51 million from €14.47 million. Earnings per share also declined slightly to €0.33 from €0.38 a year ago. Despite this, analysts forecast significant annual profit growth of 29.3%, well above the market average of 12%. The stock is trading at 47% below its fair value estimate and is expected to rise by 26.7%.
Overview: MedinCell S.A. is a pharmaceutical company based in France that develops long-acting injectables across various therapeutic areas, with a market cap of €527.07 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 reported a full-year revenue of €11.95 million, down from €13.66 million, and a net loss of €25.04 million, an improvement from the previous year's loss of €32.01 million. Analysts forecast MedinCell's revenue to grow at 45.9% annually and expect it to become profitable within three years, outpacing market growth rates. The stock is trading at 86.8% below its estimated fair value with anticipated price appreciation of 21.6%.
Overview: Eurazeo SE is a private equity and venture capital firm specializing in growth capital, acquisitions, leveraged buyouts, and investments in mid-market and listed public companies, with a market cap of €5.14 billion.
Operations: The firm's revenue segments consist of growth capital, acquisitions, leveraged buyouts, and investments in mid-market and listed public companies.
Insider Ownership: 12.1%
Earnings Growth Forecast: 49.9% p.a.
Eurazeo SE, a growth company with high insider ownership in France, reported H1 2024 sales of €180.71 million, up from €171.18 million a year ago, but faced a net loss of €104.56 million compared to last year's net income of €1.80 billion. Despite this setback, analysts forecast Eurazeo's revenue to grow at 47.4% annually and expect it to become profitable within three years. The stock trades at 84.1% below its estimated fair value with anticipated price appreciation of 29.7%.
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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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