Stock Analysis

Lectra And 2 Other Euronext Paris Growth Stocks With High Insider Ownership

ENXTPA:MEDCL
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Amidst a backdrop of political uncertainty and fluctuating market conditions across Europe, France's equity landscape has not been immune to the pressures seen region-wide. In such a climate, growth companies with high insider ownership, like Lectra, can offer investors a unique blend of stability and potential resilience due to their closely aligned management interests.

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%30.6%
La Française de l'Energie (ENXTPA:FDE)20.1%37.6%
Adocia (ENXTPA:ADOC)12.1%104.5%
OSE Immunotherapeutics (ENXTPA:OSE)25.6%79.3%
Icape Holding (ENXTPA:ALICA)30.2%26.1%
Arcure (ENXTPA:ALCUR)21.4%42.4%
Munic (ENXTPA:ALMUN)29.4%150%
WALLIX GROUP (ENXTPA:ALLIX)19.8%101.6%
MedinCell (ENXTPA:MEDCL)16.4%74.6%

Click here to see the full list of 22 stocks from our Fast Growing Euronext Paris Companies With High Insider Ownership screener.

Let's explore several standout options from the results in the screener.

Lectra (ENXTPA:LSS)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Lectra SA offers industrial intelligence solutions tailored for the fashion, automotive, and furniture sectors across Northern Europe, Southern Europe, the Americas, and Asia Pacific, with a market capitalization of approximately €1.03 billion.

Operations: The company generates revenue from the Americas and Asia Pacific regions, amounting to €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 36.6% below its estimated fair value, presenting an attractive opportunity despite some challenges. Recent earnings show a slight decline with Q1 sales at €129.56 million and net income at €7.17 million. However, the company's future looks promising with expected annual earnings growth of 28.6% and revenue growth of 11.3%, both outpacing the broader French market significantly. Insider ownership remains high, though recent months have not seen substantial buying or selling by insiders.

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

MedinCell (ENXTPA:MEDCL)

Simply Wall St Growth Rating: ★★★★★☆

Overview: MedinCell S.A. is a French pharmaceutical company that specializes in developing long-acting injectable medications across multiple therapeutic areas, with a market capitalization of approximately €396.39 million.

Operations: The company generates its revenue primarily from the pharmaceutical sector, totaling €11.95 million.

Insider Ownership: 16.4%

Earnings Growth Forecast: 74.6% p.a.

MedinCell, a French growth company with high insider ownership, reported a decrease in annual revenue to €11.95 million and reduced its net loss to €25.04 million for the year ending March 2024. The company is trading significantly below its estimated fair value, suggesting potential undervaluation. Despite recent setbacks in clinical trials, such as the Phase 3 trial for F14 not meeting its primary endpoint, MedinCell's collaboration with AbbVie could bolster future prospects with up to €1.9 billion in potential milestones plus royalties on sales across multiple therapies. Analysts predict substantial revenue growth and profitability within three years, outpacing average market projections.

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

OVH Groupe (ENXTPA:OVH)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: OVH Groupe S.A. offers a range of services including public and private cloud, shared hosting, and dedicated servers globally, with a market capitalization of approximately €0.98 billion.

Operations: The company generates revenue through three primary segments: public cloud (€140.71 million), private cloud (€514.59 million), and web cloud (€179.45 million).

Insider Ownership: 10.5%

Earnings Growth Forecast: 101.5% p.a.

OVH Groupe, a French growth company with significant insider ownership, is navigating through a transformative phase with strategic executive appointments aimed at bolstering its market position. Despite experiencing high share price volatility recently, OVH has shown promising signs of recovery in its financial performance. The company reported improved half-year sales of €486.09 million and reduced its net loss to €17.24 million from the previous year. Forecasts suggest an above-market revenue growth rate of 10.9% annually and a path to profitability within three years, although its projected Return on Equity remains low at 3.7%. These developments indicate potential for growth albeit tempered by some financial challenges.

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