Euronext Paris Growth Leaders With High Insider Stakes May 2024

As of May 2024, the French market, like many global counterparts, has shown mixed performance with the CAC 40 Index experiencing a modest decline amidst broader European economic uncertainties and fluctuating interest rate expectations. In such a landscape, growth companies with high insider ownership in France may offer unique investment appeal due to aligned interests between company executives and shareholders, potentially fostering resilience and long-term value creation in turbulent times.

Top 10 Growth Companies With High Insider Ownership In France

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.

Believe (ENXTPA:BLV)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Believe S.A. is a company that offers digital music services to independent labels and local artists across various regions including France, Germany, Europe, the Americas, Asia, Oceania, and the Pacific, with a market capitalization of approximately €1.47 billion.

Operations: The company generates revenue primarily through two segments: Premium Solutions, which brought in €825.12 million, and Automated Solutions, contributing €55.19 million.

Insider Ownership: 10.9%

Revenue Growth Forecast: 14.0% p.a.

Believe S.A. is navigating a pivotal phase with significant insider interest and acquisition bids, reflecting its potential despite current financial challenges. Recently rejecting Warner Music's €1.79 billion bid, Believe shows a preference for strategic alignment over pure financial gain, aligning with insider-led offers around €1.52 billion. Financially, Believe is on a recovery path with reduced losses and promising revenue growth forecasts of 14% annually, outpacing the French market's 5.7%. However, its forecasted return on equity remains modest at 10.7%.

• Unlock comprehensive insights into our analysis of Believe stock in this growth report.
• Insights from our recent valuation report point to the potential undervaluation of Believe shares in the market.

Lectra (ENXTPA:LSS)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Lectra SA offers industrial intelligence solutions for the fashion, automotive, and furniture industries with a market capitalization of approximately €1.24 billion.

Operations: The company generates revenue from the Americas and Asia-Pacific regions, totaling €170.33 million and €110.28 million respectively.

Insider Ownership: 19.6%

Revenue Growth Forecast: 11.3% p.a.

Lectra SA, a French growth company with high insider ownership, is poised for robust expansion with earnings expected to increase by 28.6% annually, outpacing the French market's 10.9%. Despite a slight dip in net income and EPS as reported in Q1 2024, revenue growth remains strong at 11.3% yearly. However, its projected return on equity of 13.3% suggests moderate future profitability. The stock is currently valued at 20.3% below its estimated fair value, indicating potential undervaluation.

• Click here and access our complete growth analysis report to understand the dynamics of Lectra.
• Our comprehensive valuation report raises the possibility that Lectra is priced lower than what may be justified by its financials.

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 €442.22 million.

Operations: The company generates its revenue primarily from the pharmaceuticals segment, totaling €14.13 million.

Insider Ownership: 16.4%

Revenue Growth Forecast: 40.1% p.a.

MedinCell, a French biotech firm, demonstrates potential in growth with high insider ownership but faces challenges. Recent trials for F14 (mdc-CWM) showed mixed results, failing its primary endpoint but revealing improvements in secondary measures such as knee range of motion and swelling reduction. Collaborations with Teva and AbbVie highlight its innovative BEPO® technology's application across various therapies. Despite recent successes like UZEDY's market launch, MedinCell's stock remains volatile and currently trades below its estimated fair value.

• Click to explore a detailed breakdown of our findings in MedinCell's earnings growth report.
• Our valuation report here indicates MedinCell may be overvalued.

Make It Happen

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Contemplating Other Strategies?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• Find companies with promising cash flow potential yet trading below their fair value.

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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