Stock Analysis

Euronext Paris Growth Companies With High Insider Ownership And 101% Earnings Growth

ENXTPA:OVH
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Amidst a backdrop of fluctuating European indices, with France's CAC 40 Index experiencing notable declines, investors are keenly observing market dynamics for robust investment opportunities. In such a landscape, growth companies with high insider ownership in France present an intriguing prospect due to their potential alignment of management and shareholder interests, especially in an environment where earnings growth is critical. In the current market conditions, characterized by shifting investor preferences and economic uncertainties, companies demonstrating strong insider commitment coupled with impressive earnings growth are particularly compelling. These firms often exemplify resilience and a deep-rooted confidence from those closest to the company's operational mechanics—its insiders.

Top 10 Growth Companies With High Insider Ownership In France

NameInsider OwnershipEarnings Growth
VusionGroup (ENXTPA:VU)13.5%25.2%
Groupe OKwind Société anonyme (ENXTPA:ALOKW)24.8%30.8%
Adocia (ENXTPA:ADOC)11.9%63%
Icape Holding (ENXTPA:ALICA)30.2%26.2%
La Française de l'Energie (ENXTPA:FDE)20.1%31.9%
Arcure (ENXTPA:ALCUR)21.4%27.5%
S.M.A.I.O (ENXTPA:ALSMA)17.3%35.2%
Munic (ENXTPA:ALMUN)29.4%149.2%
OSE Immunotherapeutics (ENXTPA:OSE)25.6%5.9%
MedinCell (ENXTPA:MEDCL)16.4%69.6%

Click here to see the full list of 21 stocks from our Fast Growing Euronext Paris Companies With High Insider Ownership screener.

Let's review some notable picks from our screened stocks.

Lectra (ENXTPA:LSS)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Lectra SA, with a market cap of €1.07 billion, offers industrial intelligence solutions across the fashion, automotive, and furniture sectors in regions including Northern Europe, Southern Europe, the Americas, and Asia Pacific.

Operations: The company generates revenue through its operations in the Americas and Asia-Pacific, reporting €170.33 million and €110.28 million respectively.

Insider Ownership: 19.6%

Earnings Growth Forecast: 28.6% p.a.

Lectra, a French company, is trading at 35.7% below its estimated fair value, signaling potential undervaluation. Analysts predict a price increase of 23%, with earnings expected to grow by 28.6% annually over the next three years—outpacing the French market's forecasted growth. Despite this robust profit outlook, revenue growth projections are more modest at 11.3% annually, still ahead of the broader market's expectations. Recent financial results showed a slight dip in net income and EPS year-over-year for Q1 2024 but maintained stable sales growth.

ENXTPA:LSS Earnings and Revenue Growth as at Jul 2024
ENXTPA:LSS Earnings and Revenue Growth as at Jul 2024

MedinCell (ENXTPA:MEDCL)

Simply Wall St Growth Rating: ★★★★★☆

Overview: MedinCell S.A. is a French pharmaceutical company specializing in the development of long-acting injectable medications across multiple therapeutic areas, with a market capitalization of approximately €446.95 million.

Operations: The company generates its revenue primarily from pharmaceuticals, totaling €11.95 million.

Insider Ownership: 16.4%

Earnings Growth Forecast: 69.6% p.a.

MedinCell, a French pharmaceutical company, has shown resilience despite recent setbacks. Its latest financial results reveal a decrease in both sales and revenue, with net losses improving from the previous year. Notably, MedinCell's innovative drug F14 did not meet its primary endpoint in Phase 3 trials but showed promising improvements in secondary outcomes like knee mobility and pain reduction post-surgery. The company is expected to become profitable within three years, with revenue growth projected significantly above the French market average.

ENXTPA:MEDCL Earnings and Revenue Growth as at Jul 2024
ENXTPA:MEDCL Earnings and Revenue Growth as at Jul 2024

OVH Groupe (ENXTPA:OVH)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: OVH Groupe S.A. is a global provider of public and private cloud services, shared hosting, and dedicated server solutions, with a market capitalization of approximately €1.06 billion.

Operations: OVH Groupe's revenue is derived from three primary segments: 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, a French cloud services provider, reported a significant improvement in its half-year financials with sales rising to €486.09 million from €439.34 million year-over-year and a reduced net loss of €17.24 million. The company is innovating with new AMD-powered Bare Metal Advance servers, expected to enhance performance and price competitiveness. Although its return on equity is forecasted low at 1.7% in three years, OVH's revenue growth is projected at 10% per year, outpacing the French market's 5.6%. Despite high share price volatility recently, OVH remains poised for profitability within three years with earnings expected to grow by 101.12% annually.

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