Stock Analysis

3 Euronext Paris Growth Stocks With High Insider Ownership And Up To 101% Earnings Growth

ENXTPA:OVH
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As the global markets react to the recent U.S. Federal Reserve rate cut, European indices have shown mixed results, with France's CAC 40 Index posting modest gains. In this environment of cautious optimism, identifying growth companies with high insider ownership can be a strategic move for investors seeking stability and potential earnings growth.

Top 10 Growth Companies With High Insider Ownership In France

NameInsider OwnershipEarnings Growth
Groupe OKwind Société anonyme (ENXTPA:ALOKW)20.6%36%
VusionGroup (ENXTPA:VU)13.4%82.3%
Icape Holding (ENXTPA:ALICA)30.2%25%
Arcure (ENXTPA:ALCUR)21.4%26.6%
La Française de l'Energie (ENXTPA:FDE)19.9%31.9%
S.M.A.I.O (ENXTPA:ALSMA)17.4%35.2%
Munic (ENXTPA:ALMUN)29.2%149.1%
Adocia (ENXTPA:ADOC)11.9%64%
MedinCell (ENXTPA:MEDCL)15.8%93.9%
OSE Immunotherapeutics (ENXTPA:OSE)25.6%5.9%

Click here to see the full list of 23 stocks from our Fast Growing Euronext Paris Companies With High Insider Ownership screener.

Let's dive into some prime choices out of the screener.

Exclusive Networks (ENXTPA:EXN)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Exclusive Networks SA operates as a global cybersecurity specialist for digital infrastructure with a market cap of €2.13 billion.

Operations: Exclusive Networks generates revenue from three primary regions: €480 million from APAC, €4.19 billion from EMEA, and €705 million from the Americas.

Insider Ownership: 13.1%

Earnings Growth Forecast: 33.7% p.a.

Exclusive Networks, a French cybersecurity firm, is poised for significant growth with forecasted annual earnings increases of 33.7% over the next three years, outpacing the French market's 12.2%. Despite lower profit margins this year (2.7%) compared to last (5.5%), its revenue growth of 14% per year remains robust. Recently, Clayton, Dubilier & Rice and Permira proposed taking the company private in a €2.2 billion deal, reflecting high insider ownership and confidence in future prospects.

ENXTPA:EXN Ownership Breakdown as at Sep 2024
ENXTPA:EXN Ownership Breakdown as at Sep 2024

Lectra (ENXTPA:LSS)

Simply Wall St Growth Rating: ★★★★☆☆

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 approximately €1.12 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%

Earnings Growth Forecast: 29.3% p.a.

Lectra, a French technology firm, shows promising growth potential with forecasted annual earnings growth of 29.3%, significantly outpacing the French market's 12.2%. Despite recent drops from the S&P Global BMI Index and a slight decline in net income to €12.51 million for H1 2024, its revenue grew to €262.29 million from €239.55 million last year. Trading at 44.8% below fair value estimates and high insider ownership underscore confidence in its future performance.

ENXTPA:LSS Ownership Breakdown as at Sep 2024
ENXTPA:LSS Ownership Breakdown as at Sep 2024

OVH Groupe (ENXTPA:OVH)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: OVH Groupe S.A. offers public and private cloud services, shared hosting, and dedicated server solutions globally, with a market cap of approximately €1.27 billion.

Operations: The company's revenue segments include Public Cloud (€169.01 million), Private Cloud (€589.61 million), and Web Cloud (€185.43 million).

Insider Ownership: 10.5%

Earnings Growth Forecast: 101.1% p.a.

OVH Groupe is poised for substantial growth, with forecasted annual revenue increases of 9.7%, outpacing the French market's 5.8%. Expected to become profitable within three years, its earnings are projected to grow at a robust rate of over 100% annually. Despite recent share price volatility and a low return on equity forecast (1.7%), OVH trades at 26% below its estimated fair value, reflecting potential upside given high insider ownership and confidence in future performance.

ENXTPA:OVH Ownership Breakdown as at Sep 2024
ENXTPA:OVH Ownership Breakdown as at Sep 2024

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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.

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