The French stock market has shown resilience, with the CAC 40 Index advancing 2.48% recently amid growing hopes for interest rate cuts. This positive momentum highlights the potential of growth companies, particularly those with high insider ownership, which can be a strong indicator of confidence from those closest to the business. In this article, we will explore three top growth companies listed on Euronext Paris that boast significant insider ownership, offering insights into their potential and what sets them apart in today's market environment.
Top 10 Growth Companies With High Insider Ownership In France
Overview: OVH Groupe S.A. offers public and private cloud services, shared hosting, and dedicated server solutions globally, with a market cap of approximately €1.15 billion.
Operations: The company's revenue segments include Public Cloud (€169.01 million), Private Cloud (€589.61 million), and Web Cloud (€185.43 million).
Insider Ownership: 10.5%
OVH Groupe, a growth company with high insider ownership in France, is trading at 31.4% below its estimated fair value. Earnings are forecast to grow significantly at 101.12% per year, although revenue growth is expected to be slower at 10% annually. The company's share price has been highly volatile recently. OVH's new ADV-Gen3 Bare Metal servers, featuring AMD EPYC 4004 processors, highlight its innovation and performance-price balance aimed at supporting diverse workloads and ensuring data protection and sustainability.
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 €5.04 billion.
Operations: Revenue Segments (in millions of €): {Segment Adjustment: 354} Eurazeo SE generates revenue through growth capital, acquisitions, leveraged buyouts, and investments in mid-market and listed public companies.
Insider Ownership: 12.1%
Eurazeo, with significant insider ownership, is forecasted to grow earnings annually by 29.03% and revenue by 45.2%, outpacing the French market's growth rate of 5.8%. Despite trading at 84.6% below its estimated fair value, recent financial results show a net loss of €104.56 million for H1 2024 compared to a substantial profit last year. The company recently completed a share buyback worth €109 million, representing 1.9% of shares outstanding.
Overview: VusionGroup S.A. offers digitalization solutions for commerce across Europe, Asia, and North America, with a market cap of €2.22 billion.
Operations: The company's revenue is primarily derived from installing and maintaining electronic shelf labels, amounting to €801.96 million.
Insider Ownership: 13.4%
VusionGroup, a growth company with high insider ownership, is forecasted to grow revenue by 21.3% and earnings by 25.7% annually, outpacing the French market. Recent partnerships with Ace Hardware and Hy-Vee highlight its advanced digital shelf label technology's impact on operational efficiency and customer experience. Analysts expect the stock price to rise by 39.3%, supported by significant profit growth over the past year and high future return on equity projections (29.5%).
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:OVH ENXTPA:RF and ENXTPA:VU.
