The European market has seen a recent boost, with France's CAC 40 Index gaining 1.71% amid growing hopes of interest rate cuts by the ECB. This positive sentiment is further bolstered by increased business activity driven by the upcoming Paris Olympics. In this favorable environment, companies with high insider ownership and strong revenue growth stand out as attractive investment opportunities. Here are three Euronext Paris growth companies that exemplify these qualities, each showing impressive revenue increases of up to 47%.
Top 10 Growth Companies With High Insider Ownership In France
Overview: Lectra SA provides 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 €1.04 billion.
Operations: The company's revenue segments are as follows: €172.65 million from the Americas, €118.54 million from the Asia-Pacific region, and a segment adjustment of €209.13 million.
Insider Ownership: 19.6%
Revenue Growth Forecast: 10.4% p.a.
Lectra's earnings are forecast to grow significantly at 29.3% per year, outpacing the French market's 12.3%. Despite trading at 47% below its estimated fair value, revenue growth is expected to be slower at 10.4% annually. Recent earnings showed sales of €262.29 million for H1 2024, up from €239.55 million last year, though net income decreased to €12.51 million from €14.47 million, with EPS dropping slightly to €0.33 from €0.38.
Overview: Eurazeo SE is a private equity and venture capital firm that focuses on growth capital, acquisitions, leveraged buyouts, and investments in mid-market and listed public companies, with a market cap of approximately €5.20 billion.
Operations: Eurazeo SE generates revenue through its private equity and venture capital activities, including growth capital, acquisitions, leveraged buyouts, and investments in mid-market and listed public companies.
Insider Ownership: 12.1%
Revenue Growth Forecast: 47.4% p.a.
Eurazeo SE, with high insider ownership, is forecast to achieve annual profit growth above the market average and revenue growth of 47.4% per year. Despite a significant net loss of €104.56 million for H1 2024, the company has repurchased shares worth €109 million. Trading at 83.9% below its estimated fair value, analysts expect a stock price rise of 28.3%. However, its dividend yield of 3.36% is not well covered by earnings or cash flows.
Overview: VusionGroup S.A. offers digitalization solutions for commerce across Europe, Asia, and North America, with a market cap of €2.23 billion.
Operations: The company generates €801.96 million from installing and maintaining electronic shelf labels.
Insider Ownership: 13.4%
Revenue Growth Forecast: 21.3% p.a.
VusionGroup, with high insider ownership, is experiencing robust growth. Its earnings grew by 320.8% last year and are forecast to grow 25.74% annually over the next three years, outpacing the French market's 12.3%. Recent partnerships with Ace Hardware and Hy-Vee highlight its innovative digital shelf label technology, enhancing customer experience and operational efficiency. Analysts predict a 38.9% stock price increase, supported by strong revenue growth forecasts of 21.3% per year.
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.
Companies discussed in this article include ENXTPA:LSS ENXTPA:RF and ENXTPA:VU.
