Stock Analysis

Lectra And Two More Euronext Paris Growth Stocks With Significant Insider Ownership

ENXTPA:OVH
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Amidst a backdrop of heightened trade tensions and fluctuating market indices in Europe, with France's CAC 40 Index experiencing a notable decline, investors may find reassurance in growth companies that boast high insider ownership. Such stocks often signal strong confidence from those who know the company best—its leaders and key stakeholders—making them potentially attractive options in uncertain economic times.

Top 10 Growth Companies With High Insider Ownership In France

NameInsider OwnershipEarnings Growth
VusionGroup (ENXTPA:VU)13.5%24.3%
Groupe OKwind Société anonyme (ENXTPA:ALOKW)24.8%39.4%
Adocia (ENXTPA:ADOC)11.9%63%
La Française de l'Energie (ENXTPA:FDE)20.1%31.8%
STIF Société anonyme (ENXTPA:ALSTI)10.7%28.5%
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.

We'll examine a selection from our screener results.

Lectra (ENXTPA:LSS)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Lectra SA offers industrial intelligence solutions tailored for the fashion, automotive, and furniture industries across Northern Europe, Southern Europe, the Americas, and Asia Pacific, with a market capitalization of approximately €1.07 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 with high insider ownership, reported a slight decline in net income to €12.51 million from €14.47 million year-over-year, despite an increase in sales to €262.29 million. Analysts forecast substantial earnings growth for Lectra at 28.6% annually, outpacing the French market's expectation of 11.3%. However, its projected revenue growth rate of 10.8% per year is robust but not exceptional compared to some high-growth sectors. The stock trades significantly below estimated fair value, suggesting potential upside according to analysts' price targets.

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 that specializes in developing long-acting injectable medications across multiple therapeutic areas, with a market capitalization of approximately €463.23 million.

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

Insider Ownership: 16.4%

Earnings Growth Forecast: 69.6% p.a.

MedinCell S.A., a French growth company with high insider ownership, demonstrates promising prospects despite recent challenges. Forecasted to become profitable within three years, MedinCell's revenue growth rate of 43.8% annually significantly outpaces the market average. Although recent clinical trials had mixed results, improvements in secondary endpoints suggest potential for future success. Last fiscal year saw a reduction in net loss to €25.04 million from €32.01 million, indicating improving financial health amidst ongoing developments.

ENXTPA:MEDCL Ownership Breakdown as at Jul 2024
ENXTPA:MEDCL Ownership Breakdown 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 €1.05 billion.

Operations: The company generates revenue primarily through three 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 growth-oriented firm with substantial insider ownership, is poised for profitability within three years, with earnings expected to increase significantly. Despite its revenue growth forecast of 10% per year being below the high-growth benchmark of 20%, it still surpasses the French market average. Recent product launches, including advanced servers with cutting-edge AMD processors, underscore its commitment to innovation and market expansion. However, a highly volatile share price and low projected return on equity highlight potential risks.

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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