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3 High-Growth French Stocks With Insider Ownership That May Surprise You

2 September, 2024 - 4:14PM
3 High-Growth French Stocks With Insider Ownership That May Surprise You
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As European inflation nears the central bank's target, the pan-European STOXX Europe 600 Index has reached record highs, with France's CAC 40 Index showing solid gains. This favorable economic environment sets a promising stage for high-growth tech stocks in France. When evaluating potential investments in this sector, it's important to consider companies that demonstrate strong innovation and adaptability to market conditions.

Click here to see the full list of 44 stocks from our Euronext Paris High Growth Tech and AI Stocks screener.

Let's dive into some prime choices out of from the screener.

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Bolloré SE operates in transportation and logistics, communications, and industry sectors across multiple continents including Europe, the Americas, Asia, Oceania, and Africa with a market cap of €16.29 billion.

Operations: Bolloré SE generates revenue primarily from its communications segment (€14.87 billion) and Bollore Energy (€2.75 billion), with additional contributions from its industry sector (€352.70 million). The company's diverse operations span across multiple continents, including Europe, the Americas, Asia, Oceania, and Africa.

Bolloré's recent earnings report highlights a remarkable sales increase to €10.59 billion from €6.23 billion, while net income surged to €3.76 billion from €114 million year-over-year, reflecting strong performance in its entertainment segment. The company's R&D expenses have been strategically allocated, contributing to its projected annual earnings growth of 32.8%, outpacing the French market's 12.2%. With revenue forecasted to grow at 8.3% annually and a consistent interim dividend of €0.02 per share, Bolloré demonstrates robust financial health and promising future prospects in the tech sector.

Review our historical performance report to gain insights into Bolloré's's past performance.

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Vivendi SE operates as an entertainment, media, and communication company across multiple continents including Europe, the Americas, Asia/Oceania, and Africa with a market cap of €10.23 billion.

Operations: Vivendi SE generates revenue primarily through its Canal+ Group (€6.20 billion) and Havas Group (€2.92 billion), with additional contributions from Gameloft (€304 million) and Prisma Media (€303 million). The company's diverse portfolio spans entertainment, media, and communication sectors across multiple continents.

Vivendi's recent half-year earnings report revealed sales of €9.05 billion, nearly doubling from €4.70 billion a year ago, though net income slightly dipped to €159 million from €174 million. The company repurchased 18.42 million shares for €184 million this year, reflecting strong capital management strategies. With R&D expenses contributing to its projected annual earnings growth of 30.6%, Vivendi is poised for a significant boost in profitability compared to the broader French market's 12.2% growth forecast.

Explore historical data to track Vivendi's performance over time in our Past section.

Simply Wall St Growth Rating: ★★★★★★

Overview: VusionGroup S.A. offers digitalization solutions for commerce across Europe, Asia, and North America with a market cap of approximately €2.27 billion.

Operations: VusionGroup S.A. specializes in providing digitalization solutions for commerce, focusing on installing and maintaining electronic shelf labels, generating approximately €801.96 million in revenue. The company operates across Europe, Asia, and North America with a market cap of around €2.27 billion.

VusionGroup's recent partnership with Ace Hardware to deploy advanced digital shelf label (DSL) technology across over 5,000 stores highlights its innovative edge in the DIY retail sector. With a forecasted revenue growth of 21.3% annually and earnings expected to rise by 25.7% per year, VusionGroup is positioned for robust expansion. The company's R&D expenses, which have historically been substantial, continue to drive technological advancements like the VusionCloud platform and BLE IoT operating system, enhancing operational efficiencies and customer experience significantly.

Gain insights into VusionGroup's historical performance by reviewing our past performance report.

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.

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Operates as an entertainment, media, and communication company in France, the rest of Europe, the Americas, Asia/Oceania, and Africa.

Excellent balance sheet with reasonable growth potential.

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us. The French stock market has been buoyed by optimism surrounding potential interest rate cuts from both the Federal Reserve and the European Central Bank, with major indices like the CAC 40 seeing notable gains. This positive sentiment is further supported by increased business activity driven by events such as the upcoming Paris Olympics. In this favorable economic climate, growth companies with high insider ownership can be particularly appealing to investors. Such companies often demonstrate strong alignment between management and shareholder interests, which can be crucial for sustained revenue growth.

Name

Insider Ownership

Earnings Growth

Groupe OKwind Société anonyme (ENXTPA:ALOKW)

24.8%

36%

VusionGroup (ENXTPA:VU)

13.4%

25.7%

Adocia (ENXTPA:ADOC)

11.9%

63%

Icape Holding (ENXTPA:ALICA)

30.2%

35.1%

Arcure (ENXTPA:ALCUR)

21.4%

27.5%

La Française de l'Energie (ENXTPA:FDE)

19.9%

31.9%

S.M.A.I.O (ENXTPA:ALSMA)

17.4%

35.2%

Munic (ENXTPA:ALMUN)

29.2%

149.2%

OSE Immunotherapeutics (ENXTPA:OSE)

25.6%

5.9%

MedinCell (ENXTPA:MEDCL)

15.8%

93.9%

Click here to see the full list of 23 stocks from our Fast Growing Euronext Paris Companies With High Insider Ownership screener.

Here we highlight a subset of our preferred stocks from the screener.

Simply Wall St Growth Rating: ★★★★☆☆

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: Revenue segments (in millions of €): Americas: 172.65, Asia-Pacific: 118.54, Segment Adjustment: 209.13

Insider Ownership: 19.6%

Revenue Growth Forecast: 10.4% p.a.

Lectra has shown robust growth potential with revenue for the first half of 2024 at €262.29 million, up from €239.55 million a year ago, though net income slightly decreased to €12.51 million. Analysts forecast significant annual earnings growth of 29.3% over the next three years, outpacing the French market's 12.2%. The stock is trading at a substantial discount of 45.8% below its estimated fair value and is expected to rise by 22.4%.

Click here to discover the nuances of Lectra with our detailed analytical future growth report.

Upon reviewing our latest valuation report, Lectra's share price might be too pessimistic.

Simply Wall St Growth Rating: ★★★★★☆

Overview: MedinCell S.A. is a pharmaceutical company in France that specializes in developing long-acting injectables across various therapeutic areas, with a market cap of €537.54 million.

Operations: MedinCell generates €11.95 million in revenue from its pharmaceuticals segment.

Insider Ownership: 15.8%

Revenue Growth Forecast: 46.2% p.a.

MedinCell reported a net loss of €25.04 million for the fiscal year ending March 31, 2024, an improvement from the previous year's €32.01 million loss. Revenue was down to €11.95 million from €13.66 million last year, but analysts forecast revenue growth at 46.2% per year, significantly above market averages and expected profitability within three years despite negative shareholders' equity and no recent insider trading activity.

Take a closer look at MedinCell's potential here in our earnings growth report.

Our valuation report here indicates MedinCell may be overvalued.

Simply Wall St Growth Rating: ★★★★★★

Overview: VusionGroup S.A. offers digitalization solutions for commerce across Europe, Asia, and North America with a market cap of €2.29 billion.

Operations: The company's revenue from installing and maintaining electronic shelf labels is €801.96 million.

Insider Ownership: 13.4%

Revenue Growth Forecast: 21.3% p.a.

VusionGroup's revenue is forecast to grow 21.3% annually, significantly outpacing the French market average of 5.8%. Earnings are expected to rise by 25.7% per year, also surpassing the market average of 12.2%. Recent partnerships with Ace Hardware and Hy-Vee highlight VusionGroup’s innovative digital shelf label technology, enhancing operational efficiencies and customer experience across thousands of stores. Analysts predict a stock price increase of 35.4%, reflecting strong growth potential driven by technological advancements and strategic collaborations.

Click to explore a detailed breakdown of our findings in VusionGroup's earnings growth report.

Upon reviewing our latest valuation report, VusionGroup's share price might be too optimistic.

Take a closer look at our Fast Growing Euronext Paris Companies With High Insider Ownership list of 23 companies by clicking here.

Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.

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Explore high-performing small cap companies that haven't yet garnered significant analyst attention.

Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.

Find companies with promising cash flow potential yet trading below their fair value.

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:VU.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

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3 High-Growth French Stocks With Insider Ownership That May Surprise You
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Simply Wall St Stock Euronext Paris Euronext N.V. Stock market France Finance French stocks Insider Ownership high growth earnings growth Euronext Paris
Emily Brown
Emily Brown

Business Analyst

Analyzing the financial world one report at a time.