Stock Analysis

3 Growth Companies With High Insider Ownership On Euronext Paris Expecting Up To 101% Earnings Growth

ENXTPA:OVH
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The French stock market has been buoyed by recent global economic developments, including China's stimulus measures and hopes for interest rate cuts in Europe, leading to a significant rise in the CAC 40 Index. This optimistic backdrop provides an excellent opportunity to explore growth companies with high insider ownership on Euronext Paris. In such a favorable market environment, stocks with substantial insider ownership often indicate strong confidence from those closest to the company's operations and future prospects.

Top 10 Growth Companies With High Insider Ownership In France

NameInsider OwnershipEarnings Growth
Groupe OKwind Société anonyme (ENXTPA:ALOKW)20.6%36%
VusionGroup (ENXTPA:VU)13.4%81.8%
Icape Holding (ENXTPA:ALICA)30.2%33.9%
Arcure (ENXTPA:ALCUR)21.4%26.6%
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%
Adocia (ENXTPA:ADOC)11.9%64%
Munic (ENXTPA:ALMUN)29.2%150%
MedinCell (ENXTPA:MEDCL)15.8%93.9%

Click here to see the full list of 23 stocks from our Fast Growing Euronext Paris Companies With High Insider Ownership screener.

Let's dive into some prime choices out of the screener.

Exclusive Networks (ENXTPA:EXN)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Exclusive Networks SA operates as a global cybersecurity specialist for digital infrastructure, with a market cap of €2.13 billion.

Operations: Exclusive Networks SA generates revenue from three primary regions: €480 million from APAC, €4.19 billion from EMEA, and €705 million from the Americas.

Insider Ownership: 13.1%

Earnings Growth Forecast: 33.7% p.a.

Exclusive Networks, a French cybersecurity firm with significant insider ownership, is set to be taken private by Clayton, Dubilier & Rice and Permira in a €2.2 billion (US$2.4 billion) deal. The consortium will acquire the 66.7% stake held by Permira and founder Olivier Breittmayer at €18.96 per share plus an exceptional distribution of €5.29 per share, totaling €24.25 per share—a 34.4% premium on the undisturbed price of €18.04 as of March 13, 2024.

ENXTPA:EXN Ownership Breakdown as at Oct 2024
ENXTPA:EXN Ownership Breakdown as at Oct 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 €1.29 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, a French cloud computing firm with high insider ownership, is forecast to become profitable in the next 3 years, with earnings expected to grow at 101.12% per year. Despite trading at 25.1% below its estimated fair value and anticipated revenue growth of 9.7% per year—faster than the French market—its return on equity is projected to be low (1.7%). The stock has experienced significant volatility over the past three months.

ENXTPA:OVH Ownership Breakdown as at Oct 2024
ENXTPA:OVH Ownership Breakdown as at Oct 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 €2.47 billion.

Operations: One of VusionGroup's primary revenue segments is Installing and Maintaining Electronic Shelf Labels, which generated €830.16 million.

Insider Ownership: 13.4%

Earnings Growth Forecast: 81.8% p.a.

VusionGroup, a growth company with high insider ownership, recently reported H1 2024 sales of €408.9 million, up from €380.7 million last year, but faced a net loss of €24.4 million compared to a previous net income of €91.5 million. The company announced partnerships with Ace Hardware and Hy-Vee to implement its digital shelf label technology, enhancing operational efficiency and customer experience. Despite trading at 47.9% below estimated fair value, VusionGroup's revenue is forecast to grow at 28.4% per year and become profitable within three years, outperforming the French market's growth rate.

ENXTPA:VU Ownership Breakdown as at Oct 2024
ENXTPA:VU Ownership Breakdown as at Oct 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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