Stock Analysis

Euronext Paris Growth Companies With High Insider Ownership And Up To 69% Earnings Growth

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Amid a generally positive week for European markets, with France's CAC 40 Index experiencing modest gains, investors continue to navigate the complexities of global economic signals and market dynamics. In this environment, growth companies with high insider ownership in France present a compelling narrative, potentially offering stability and confidence due to significant skin in the game from those who know these companies best.

Top 10 Growth Companies With High Insider Ownership In France

NameInsider OwnershipEarnings Growth
VusionGroup (ENXTPA:VU)13.5%25.2%
Groupe OKwind Société anonyme (ENXTPA:ALOKW)24.8%30.8%
Adocia (ENXTPA:ADOC)11.9%63%
Icape Holding (ENXTPA:ALICA)30.2%26.2%
La Française de l'Energie (ENXTPA:FDE)20.1%31.9%
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%
MedinCell (ENXTPA:MEDCL)16.4%69.6%
OSE Immunotherapeutics (ENXTPA:OSE)25.6%5.9%

Click here to see the full list of 21 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 offers industrial intelligence solutions across the fashion, automotive, and furniture sectors in various global regions including Northern Europe, Southern Europe, the Americas, and Asia Pacific, with a market capitalization of approximately €1.10 billion.

Operations: The company generates revenue from its operations in the Americas and Asia Pacific, with respective segments contributing €170.33 million and €110.28 million.

Insider Ownership: 19.6%

Earnings Growth Forecast: 28.6% p.a.

Lectra, a French company with significant insider ownership, is trading at 33.6% below its estimated fair value, presenting an attractive entry point. While its Return on Equity is expected to be modest at 13.3%, the company's earnings are projected to grow by 28.6% annually over the next three years, outpacing the French market's forecast of 10.9%. Despite a slight dip in net income and EPS as reported in Q1 2024 results, revenue growth remains robust at 11.3% per year, also above the market average of 5.7%.

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 specializing in the development of long-acting injectable medications across multiple therapeutic areas, with a market capitalization of approximately €424.28 million.

Operations: The company generates €11.95 million in revenue from its pharmaceuticals segment.

Insider Ownership: 16.4%

Earnings Growth Forecast: 69.6% p.a.

MedinCell, a French growth company with high insider ownership, is navigating a challenging phase with its recent trial for F14 not meeting its primary endpoint. Despite this setback, the company reported a decrease in annual revenue to €11.95 million and reduced its net loss to €25.04 million. MedinCell's forecasted revenue growth at 43.8% per year outstrips the French market's 5.7%, and it's expected to turn profitable within three years, showcasing potential amidst volatility.

ENXTPA:MEDCL Earnings and Revenue Growth as at Jul 2024

VusionGroup (ENXTPA:VU)

Simply Wall St Growth Rating: ★★★★★★

Overview: VusionGroup S.A. specializes in offering digitalization solutions for commerce across Europe, Asia, and North America, with a market capitalization of approximately €2.19 billion.

Operations: The company generates €801.96 million from the installation and maintenance of electronic shelf labels.

Insider Ownership: 13.5%

Earnings Growth Forecast: 25.2% p.a.

VusionGroup, a French growth company with significant insider ownership, recently enhanced its market position through a partnership with Hy-Vee, implementing digital solutions across over 230 stores. This move not only streamlines operations but also supports sustainability by reducing operational costs and carbon footprint. Despite a highly volatile share price in the past three months, VusionGroup's revenue and earnings have shown robust growth, with revenue increasing to €801.96 million and net income to €79.77 million as of the last fiscal year-end. The company's earnings are expected to continue outpacing the French market significantly, driven by technological advancements and strategic partnerships.

ENXTPA:VU Earnings and Revenue Growth as at Jul 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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