Stock Analysis

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

ENXTPA:OVH
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Amidst a backdrop of interest rate cuts by the European Central Bank and a general uptick in the French CAC 40 Index, investors are increasingly seeking opportunities in growth stocks with strong insider ownership. In this environment, companies that exhibit robust earnings growth and significant insider investment can be particularly appealing due to their potential for sustained performance and alignment of interests between management and shareholders.

Top 10 Growth Companies With High Insider Ownership In France

NameInsider OwnershipEarnings Growth
Groupe OKwind Société anonyme (ENXTPA:ALOKW)24.8%36%
Adocia (ENXTPA:ADOC)11.9%63%
VusionGroup (ENXTPA:VU)13.4%82.3%
Icape Holding (ENXTPA:ALICA)30.2%28.1%
La Française de l'Energie (ENXTPA:FDE)19.9%31.9%
S.M.A.I.O (ENXTPA:ALSMA)17.4%35.2%
STIF Société anonyme (ENXTPA:ALSTI)16.4%28.5%
Munic (ENXTPA:ALMUN)29.2%149.1%
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 review some notable picks from our screened stocks.

Lectra (ENXTPA:LSS)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Lectra SA provides 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 €1.10 billion.

Operations: The company's revenue segments are as follows: Americas: €172.65 million, Asia-Pacific: €118.54 million, and Segment Adjustment: €209.13 million.

Insider Ownership: 19.6%

Earnings Growth Forecast: 29.3% p.a.

Lectra's earnings are forecast to grow 29.3% annually, significantly outpacing the French market's 12.3%. Despite a recent dip in net income to €12.51 million for H1 2024, sales increased to €262.29 million from €239.55 million last year. Trading at 46% below fair value estimates, Lectra shows strong growth potential with revenue expected to grow faster than the French market at 10.4% per year, though its return on equity is forecasted low at 13.2%.

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 €1.21 billion.

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

Insider Ownership: 10.5%

Earnings Growth Forecast: 101.1% p.a.

OVH Groupe's earnings are forecast to grow 101.12% annually, with revenue expected to rise at 9.7% per year, surpassing the French market's average growth. Despite a highly volatile share price recently, the stock trades at 28.9% below fair value estimates. Recent product innovations, such as the ADV-Gen3 Bare Metal servers powered by AMD EPYC processors, highlight OVHcloud’s commitment to performance and sustainability in data centers with high security standards like ISO 27001 certification.

ENXTPA:OVH Earnings and Revenue Growth as at Sep 2024
ENXTPA:OVH Earnings and Revenue Growth as at Sep 2024

VusionGroup (ENXTPA:VU)

Simply Wall St Growth Rating: ★★★★★★

Overview: VusionGroup S.A. offers digitalization solutions for commerce across Europe, Asia, and North America, with a market cap of €2.50 billion.

Operations: VusionGroup S.A. generates revenue by providing digitalization solutions for commercial sectors in Europe, Asia, and North America.

Insider Ownership: 13.4%

Earnings Growth Forecast: 82.3% p.a.

VusionGroup, a growth company with high insider ownership in France, is forecast to become profitable within three years, outpacing market growth. Despite recent financial setbacks—reporting a net loss of €24.4 million for H1 2024—the company’s revenue grew to €408.9 million. Significant partnerships with Ace Hardware and Hy-Vee highlight VusionGroup's innovative digital shelf label technology and cloud management solutions, positioning it for substantial future revenue growth and operational efficiency improvements across retail sectors.

ENXTPA:VU Earnings and Revenue Growth as at Sep 2024
ENXTPA:VU Earnings and Revenue Growth 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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