Stock Analysis

3 Growth Companies With High Insider Ownership On Euronext Paris Expect To Grow Profits Up To 101%

ENXTPA:EXN
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As the European Central Bank's recent interest rate cuts have buoyed major stock indexes, including France's CAC 40, investor sentiment in the region is cautiously optimistic with expectations for further monetary easing. In this environment of potential economic support, growth companies with high insider ownership on Euronext Paris may present appealing opportunities as they align interests between company insiders and shareholders, potentially driving profitability.

Top 10 Growth Companies With High Insider Ownership In France

NameInsider OwnershipEarnings Growth
VusionGroup (ENXTPA:VU)13.4%81.7%
Icape Holding (ENXTPA:ALICA)30.2%33.9%
Arcure (ENXTPA:ALCUR)21.4%26.6%
STIF Société anonyme (ENXTPA:ALSTI)16.4%22.9%
La Française de l'Energie (ENXTPA:FDE)19.9%31.9%
Munic (ENXTPA:ALMUN)27.1%174.1%
WALLIX GROUP (ENXTPA:ALLIX)19.6%94.8%
Adocia (ENXTPA:ADOC)11.7%64%
S.M.A.I.O (ENXTPA:ALSMA)17.4%103.8%
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 take a closer look at a couple of our picks from the screened companies.

Exclusive Networks (ENXTPA:EXN)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Exclusive Networks SA is a global cybersecurity specialist focused on digital infrastructure, with a market cap of €2.14 billion.

Operations: The company's revenue segments include €480 million from APAC, €4.19 billion from EMEA, and €705 million from the Americas.

Insider Ownership: 13.1%

Earnings Growth Forecast: 33.5% p.a.

Exclusive Networks is undergoing a significant transition as Clayton, Dubilier & Rice and Permira plan to take it private in a €2.2 billion deal. This move underscores the company's high insider ownership, with 66.7% held by Permira's entity and its founder. Despite recent declines in profit margins, Exclusive Networks' earnings are projected to grow significantly at 33.5% annually, outpacing the French market's growth rate of 12.2%.

ENXTPA:EXN Earnings and Revenue Growth as at Oct 2024
ENXTPA:EXN Earnings and Revenue Growth as at Oct 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 €1.36 billion.

Operations: The company's revenue is primarily derived from its Private Cloud segment (€589.61 million), followed by Web Cloud (€185.43 million) and Public Cloud services (€169.01 million).

Insider Ownership: 10.5%

Earnings Growth Forecast: 101.4% p.a.

OVH Groupe is expected to experience substantial profit growth, with earnings projected to increase by 101.37% annually, surpassing the French market's average. While its revenue growth forecast of 9.7% per year exceeds the market rate, it remains below high-growth benchmarks. Despite trading at a significant discount to fair value and lacking recent insider trading activity, OVH's share price has been highly volatile recently. The company anticipates achieving profitability within three years.

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 capitalization of €2.26 billion.

Operations: The company generates revenue primarily from installing and maintaining electronic shelf labels, amounting to €830.16 million.

Insider Ownership: 13.4%

Earnings Growth Forecast: 81.7% p.a.

VusionGroup is positioned for significant growth with a forecasted revenue increase of 28.4% annually, outpacing the French market. The company's earnings are expected to grow by 81.72% per year, with profitability anticipated within three years. Recent developments include a strategic partnership with Ace Hardware to implement digital shelf label technology across its stores, enhancing operational efficiency and customer experience. Despite recent losses, analysts expect the stock price to rise significantly based on future potential.

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

Key Takeaways

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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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