In August 2024, the French market has shown resilience amid global volatility, with the CAC 40 Index posting a modest gain of 0.25%. As economic uncertainties persist, investors are increasingly looking at growth companies with high insider ownership as potential stable investments. In this context, stocks where insiders hold significant stakes can be particularly attractive due to their perceived alignment of interests with shareholders and potential for long-term growth.
Top 10 Growth Companies With High Insider Ownership In France
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 €1.06 billion.
Operations: The company generates revenue from three main segments: Public Cloud (€169.01 million), Private Cloud (€589.61 million), and Web Cloud & Other (€185.43 million).
Insider Ownership: 10.5%
OVH Groupe, a growth company with high insider ownership in France, is forecast to grow revenue by 10% annually, outpacing the French market. Despite its volatile share price and low expected return on equity (1.7%), OVH is anticipated to become profitable within three years. Recent innovations include new ADV-Gen3 Bare Metal servers featuring AMD EPYC 4004 processors, enhancing performance and sustainability. The appointment of Celine Choussy as chief marketing officer aims to bolster their global brand strategy.
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 €49.00 billion.
Operations: Eurazeo's revenue segments include growth capital, acquisitions, leveraged buyouts, and investments in mid-market and listed public companies.
Insider Ownership: 12.1%
Eurazeo is forecast to achieve significant revenue growth of 45.2% annually, well above the French market average. Despite a recent net loss of €104.56 million for H1 2024, the company is expected to become profitable within three years, with earnings projected to grow by 37.63% per year. Trading at 83.5% below estimated fair value and with analysts predicting a price increase of 38.5%, Eurazeo remains an attractive prospect despite its current challenges and low return on equity forecasts (10.5%).
Overview: VusionGroup S.A. offers digitalization solutions for commerce across Europe, Asia, and North America, with a market cap of €2.15 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, is forecast to achieve significant annual earnings growth of 25.7% and revenue growth of 21.3%, outpacing the broader market. Recent partnerships with Ace Hardware and Hy-Vee highlight VusionGroup's innovative digital shelf label technology, enhancing operational efficiencies and customer experiences across thousands of stores. Analysts predict a 44.3% stock price increase, supported by robust financial forecasts including a high return on equity (29.5%) in three years.
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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