The French stock market has recently shown resilience, with the CAC 40 Index advancing 2.48% amid growing hopes for interest rate cuts. This positive sentiment provides an opportune backdrop to explore growth companies with high insider ownership on Euronext Paris. In the current market environment, stocks with substantial insider ownership can be particularly appealing as they often indicate strong confidence from those closest to the company's operations and strategy.
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: Revenue segments (in millions of €): Americas: €172.65, Asia-Pacific: €118.54, Segment Adjustment: €209.13
Insider Ownership: 19.6%
Earnings Growth Forecast: 29.3% p.a.
Lectra, 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 decreased to €12.51 million from €14.47 million. Despite this, analysts expect annual profit growth of 29.3%, significantly outpacing the French market's 12.2%. The stock trades at 47% below its estimated fair value and is projected to see a price rise of 25.8%, with revenue growth forecasted at 10.4% per year.
Overview: OVH Groupe S.A. offers public and private cloud services, shared hosting, and dedicated server solutions globally, with a market cap of €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%
Earnings Growth Forecast: 101.1% p.a.
OVH Groupe is forecast to become profitable within three years, with earnings expected to grow at 101.12% annually. Despite this, its Return on Equity is projected to be low at 1.7%. The stock trades at 31.3% below its estimated fair value and has shown high price volatility recently. Revenue growth is expected at 10% per year, outpacing the French market's average of 5.8%. Recent innovations include new AMD EPYC-powered servers enhancing performance and network capabilities for various business needs.
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 €5.11 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%
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 but faced a net loss of €104.56 million. Despite this, its revenue is forecast to grow at 47.4% annually, significantly outpacing the French market's average of 5.8%. The stock trades at 84.2% below its estimated fair value and analysts expect a price rise of 30.4%. Recent buybacks include repurchasing shares worth €109 million in H1 2024.
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:OVH and ENXTPA:RF.
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