As the French CAC 40 Index experiences a modest rise amidst hopes of accelerated European Central Bank rate cuts, investors are keenly observing growth companies with substantial insider ownership on Euronext Paris. In this context, understanding what makes a good stock involves assessing not only its growth potential but also the confidence insiders have in their company's future, which can be particularly compelling during times of economic adjustment.
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's revenue is segmented into €480 million from APAC, €4.19 billion from EMEA, and €705 million from the Americas.
Insider Ownership: 13.1%
Earnings Growth Forecast: 33.5% p.a.
Exclusive Networks is undergoing a significant transition as private equity firms Clayton, Dubilier & Rice and Permira aim to take it private, valuing the company at €2.2 billion. With 66.7% insider ownership by Permira and founder Olivier Breittmayer, this highlights strong insider control. Despite recent sales decline to €723 million for H1 2024, earnings are projected to grow significantly at 33.5% annually over the next three years, outpacing the French market growth of 12.1%.
Overview: MedinCell S.A. is a pharmaceutical company in France that develops long-acting injectables across various therapeutic areas, with a market cap of €456.09 million.
Operations: The company's revenue segment consists solely of Pharmaceuticals, generating €11.95 million.
Insider Ownership: 15.8%
Earnings Growth Forecast: 93.9% p.a.
MedinCell is poised for significant growth, with revenue expected to increase by 46.2% annually, outpacing the French market. The company trades at a substantial discount to its estimated fair value and is anticipated to become profitable within three years, exceeding average market growth rates. Recent strategic alliances with AbbVie and Teva highlight its innovative BEPO® technology's commercial potential, while structural governance changes aim to bolster leadership as MedinCell expands its therapeutic portfolio.
Overview: OVH Groupe S.A. is a global provider of public and private cloud services, shared hosting, and dedicated server solutions, with a market cap of €1.29 billion.
Operations: The company's revenue is primarily derived from its Private Cloud segment at €589.61 million, followed by Web Cloud & Other at €185.43 million, and Public Cloud services contributing €169.01 million.
Insider Ownership: 10.5%
Earnings Growth Forecast: 101.4% p.a.
OVH Groupe is forecast to achieve profitability within three years, surpassing average market growth rates. Despite its volatile share price recently, OVH's revenue growth of 9.7% annually is expected to outpace the French market's 5.6%. The stock trades at a significant discount of 43.5% below its estimated fair value, though insider trading activity has been minimal in recent months. However, its return on equity is projected to remain low at 0%.
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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:MEDCL and ENXTPA:OVH.
