The French market has shown resilience, with the CAC 40 Index adding 0.25% despite global economic uncertainties and mixed signals from consumer demand and manufacturing sectors. In this environment, growth companies with high insider ownership can be particularly appealing as they often indicate strong confidence in the company's future prospects by those who know it best. When evaluating stocks like OVH Groupe and others on Euronext Paris, insider ownership becomes a key factor to consider. High insider stakes can align management's interests with those of shareholders, potentially leading to more prudent decision-making and long-term value creation.
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 €1.06 billion.
Operations: The company's revenue segments include Public Cloud (€169.01 million), Private Cloud (€589.61 million), and Web Cloud & Other (€185.43 million).
Insider Ownership: 10.5%
Earnings Growth Forecast: 101.1% p.a.
OVH Groupe, a French cloud computing company, exemplifies growth with high insider ownership. Despite forecasts of modest revenue growth at 10% per year and low Return on Equity (1.7%) in three years, the company is expected to become profitable within the same period. Recent innovations include the launch of ADV-Gen3 Bare Metal servers powered by AMD EPYC 4004 processors, enhancing performance and sustainability. OVH trades at a significant discount to its estimated fair value.
Overview: Eurazeo SE is a private equity and venture capital firm that focuses on growth capital, acquisitions, leveraged buyouts, buy-ins of private companies, and investments in mid-market and listed public companies with a market cap of approximately €49 billion.
Operations: Eurazeo SE's revenue segments include Private Equity (€1.45 billion), Real Assets (€0.37 billion), and Private Debt (€0.17 billion).
Insider Ownership: 12.1%
Earnings Growth Forecast: 37.6% p.a.
Eurazeo, a French investment firm, demonstrates strong growth potential with high insider ownership. The company’s revenue is forecast to grow at 45.2% annually, significantly outpacing the French market average of 5.8%. Despite a recent net loss of €104.56 million for H1 2024 and trading at 83.5% below its fair value estimate, analysts expect the stock price to rise by 38.5%. Earnings are projected to grow by 37.63% per year over the next three years.
Overview: VusionGroup S.A. provides digitalization solutions for commerce across Europe, Asia, and North America with a market cap of €2.15 billion.
Operations: Revenue from Installing and Maintaining Electronic Shelf Labels amounts to €801.96 million.
Insider Ownership: 13.4%
Earnings Growth Forecast: 25.7% p.a.
VusionGroup, a growth company with high insider ownership, is forecast to achieve annual revenue growth of 21.3%, outpacing the French market average. Recent partnerships with Ace Hardware and Hy-Vee highlight its innovative digital shelf label technology, enhancing operational efficiency and customer experience. Analysts project a 44.3% stock price increase, supported by strong earnings growth expectations of 25.7% annually over the next three years and a high return on equity forecasted at 29.5%.
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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:OVH ENXTPA:RF and ENXTPA:VU.
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