As the European economy experiences a boost from Paris and anticipates potential interest rate cuts from major central banks, the French stock market has shown resilience with notable gains in its indices. In this environment, growth companies with high insider ownership can be particularly appealing to investors, as they often signal strong confidence from those closest to the business.
Top 10 Growth Companies With High Insider Ownership In France
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 €1.04 billion.
Operations: The company's revenue segments are distributed 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 demonstrates strong growth potential with forecasted annual earnings growth of 29.3%, significantly outpacing the French market's 12.3%. Despite trading at 47% below its estimated fair value, recent earnings reports show a slight dip in net income to €12.51 million for H1 2024 from €14.47 million a year ago, with sales rising to €262.29 million from €239.55 million. Analyst consensus indicates a potential stock price increase of 25.8%.
Overview: MedinCell S.A., a pharmaceutical company with a market cap of €524.16 million, develops long-acting injectables in various therapeutic areas in France.
Operations: MedinCell's revenue from pharmaceuticals amounts to €11.95 million.
Insider Ownership: 15.8%
Revenue Growth Forecast: 46.2% p.a.
MedinCell shows strong growth potential with forecasted annual revenue growth of 46.2%, significantly outpacing the French market's 5.8%. Despite a net loss of €25.04 million for FY2024, down from €32.01 million the previous year, analysts expect profitability within three years and predict a stock price rise of 22.3%. The company trades at 86.9% below its estimated fair value, highlighting substantial upside potential for investors focused on high insider ownership companies in France.
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: The firm's revenue segments include private equity and venture capital investments specializing in growth capital, acquisitions, leveraged buyouts, and mid-market as well as listed public companies.
Insider Ownership: 12.1%
Revenue Growth Forecast: 47.4% p.a.
Eurazeo SE, a growth company with high insider ownership in France, reported H1 2024 sales of €180.71 million but faced a net loss of €104.56 million. Despite this setback, the company is forecasted to achieve significant revenue growth of 47.4% annually and become profitable within three years. Analysts agree on a potential stock price increase of 28.2%. Recent share buybacks totaling €109 million underscore management's confidence in the company's future prospects.
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:MEDCL and ENXTPA:RF.
