As the French CAC 40 Index experiences modest gains amid hopes for accelerated European Central Bank interest rate cuts, investors are keenly observing growth companies with significant insider ownership on Euronext Paris. In such a market environment, stocks that combine robust revenue growth with high insider stakes can be particularly appealing, as they often indicate strong confidence from those closest to the company's operations.
Top 10 Growth Companies With High Insider Ownership In France
Overview: Exclusive Networks SA is a global cybersecurity specialist focused on digital infrastructure, with a market cap of €2.14 billion.
Operations: The company generates revenue from various regions, including €480 million from APAC, €4.19 billion from EMEA, and €705 million from the Americas.
Insider Ownership: 13.1%
Revenue Growth Forecast: 13.1% p.a.
Exclusive Networks, a French cybersecurity firm, is experiencing significant insider ownership with 66.7% held by Permira's entity and founder Olivier Breittmayer. The company's earnings are forecast to grow at 33.5% annually, outpacing the French market average of 12.1%. Despite lower profit margins this year, Exclusive Networks is trading below its estimated fair value and is subject to a proposed acquisition by CD&R and Permira for €2.2 billion (US$2.4 billion).
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 €1.07 billion.
Operations: The company's revenue segments include €172.65 million from the Americas and €118.54 million from the Asia-Pacific region.
Insider Ownership: 19.6%
Revenue Growth Forecast: 10.4% p.a.
Lectra, a French technology firm, is trading significantly below its estimated fair value and boasts strong growth prospects. Despite being dropped from the S&P Global BMI Index recently, Lectra's earnings are forecast to grow at 29.3% annually over the next three years, outpacing the French market average. Revenue growth is expected to surpass market rates at 10.4% per year. However, recent earnings showed a decline in net income compared to last year despite increased sales.
Overview: MedinCell S.A. is a pharmaceutical company in France that develops long-acting injectables across various therapeutic areas, with a market cap of €442.13 million.
Operations: The company's revenue primarily comes from its pharmaceuticals segment, totaling €11.95 million.
Insider Ownership: 15.8%
Revenue Growth Forecast: 46.2% p.a.
MedinCell, a French pharmaceutical company, is trading significantly below its estimated fair value and demonstrates robust growth potential. With revenue expected to grow at 46.2% annually, it outpaces the French market average. The recent strategic partnership with AbbVie for co-developing therapeutic products highlights its innovative BEPO® technology's commercial appeal. Despite negative shareholders' equity, MedinCell's inclusion in the S&P Global BMI Index and anticipated profitability within three years underscore its promising trajectory in the industry.
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:EXN ENXTPA:LSS and ENXTPA:MEDCL.
