Stock Analysis

3 High Insider Ownership Growth Stocks On Euronext Paris

ENXTPA:OVH
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The French stock market has shown resilience, with the CAC 40 Index climbing nearly 4% recently, buoyed by positive sentiment from China's new stimulus measures. As investors seek opportunities in this optimistic environment, growth companies with high insider ownership stand out for their potential alignment of interests between management and shareholders. High insider ownership can signal confidence in a company's future prospects and often aligns the interests of executives with those of other shareholders. In this article, we will explore three such growth stocks listed on Euronext Paris that exemplify these qualities.

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%82.3%
Icape Holding (ENXTPA:ALICA)30.2%33.8%
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%
Munic (ENXTPA:ALMUN)29.2%150%
Adocia (ENXTPA:ADOC)11.9%64%
MedinCell (ENXTPA:MEDCL)15.8%93.9%

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

We're going to check out a few of the best picks from our screener tool.

Lectra (ENXTPA:LSS)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Lectra SA offers 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 €1.13 billion.

Operations: Revenue Segments (in millions of €): Americas: 172.65, Asia-Pacific: 118.54, Segment Adjustment: 209.13

Insider Ownership: 19.6%

Earnings Growth Forecast: 29.3% p.a.

Lectra, a growth company with high insider ownership in France, reported half-year sales of €262.29 million and net income of €12.51 million, down from €14.47 million the previous year. Despite being dropped from the S&P Global BMI Index on September 10, 2024, Lectra's earnings are forecast to grow significantly at 29.3% annually over the next three years, outpacing the French market's average growth rate of 12.3%.

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 €1.26 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, with significant insider ownership, is forecast to achieve a revenue growth rate of 9.7% annually, outpacing the French market's 5.7%. The company is expected to become profitable within three years and sees earnings growing at an impressive annual rate of 101.12%. However, its share price has been highly volatile over the past three months. Trading at 26.3% below estimated fair value suggests potential upside despite a low forecasted return on equity (1.7%).

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 €2.44 billion.

Operations: The company's revenue from installing and maintaining electronic shelf labels amounts to €830.16 million.

Insider Ownership: 13.4%

Earnings Growth Forecast: 82.3% p.a.

VusionGroup, with substantial insider ownership, is positioned for significant growth. Despite reporting a net loss of €24.4 million for H1 2024, the company’s revenue increased to €408.9 million from €380.7 million year-on-year. Recent partnerships with Ace Hardware and Hy-Vee highlight its advanced digital shelf label technology, driving operational efficiencies and customer experience improvements. Analysts forecast VusionGroup’s revenue to grow at 28.4% annually, outpacing the French market, with expected profitability within three years and high return on equity (27.2%).

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

Summing It All Up

Curious About Other Options?

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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