What Is The Ownership Structure Like For iliad S.A. (EPA:ILD)?

By
Simply Wall St
Published
February 04, 2021
ENXTPA:ILD

If you want to know who really controls iliad S.A. (EPA:ILD), then you'll have to look at the makeup of its share registry. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Warren Buffett said that he likes "a business with enduring competitive advantages that is run by able and owner-oriented people." So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.

With a market capitalization of €11b, iliad is rather large. We'd expect to see institutional investors on the register. Companies of this size are usually well known to retail investors, too. Taking a look at our data on the ownership groups (below), it seems that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about iliad.

See our latest analysis for iliad

ownership-breakdown
ENXTPA:ILD Ownership Breakdown February 4th 2021

What Does The Institutional Ownership Tell Us About iliad?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in iliad. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at iliad's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
ENXTPA:ILD Earnings and Revenue Growth February 4th 2021

We note that hedge funds don't have a meaningful investment in iliad. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In iliad's case, its Top Key Executive, Xavier Niel, is the largest shareholder, holding 59% of shares outstanding. In comparison, the second and third largest shareholders hold about 1.3% and 1.3% of the stock.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of iliad

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our information suggests that insiders own more than half of iliad S.A.. This gives them effective control of the company. That means insiders have a very meaningful €6.8b stake in this €11b business. Most would be pleased to see the board is investing alongside them. You may wish to discover if they have been buying or selling.

General Public Ownership

The general public holds a 29% stake in iliad. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand iliad better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for iliad you should know about.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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This article by Simply Wall St is general in nature. 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.
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