As the pan-European STOXX Europe 600 Index rebounds and major stock indexes in Europe rise on hopes for interest rate cuts, the Netherlands market remains a focal point for investors seeking growth opportunities. In this favorable climate, companies with high insider ownership are often seen as promising investments due to their potential alignment of interests between management and shareholders.
Top 5 Growth Companies With High Insider Ownership In The Netherlands
Overview: Basic-Fit N.V., along with its subsidiaries, operates fitness clubs and has a market capitalization of approximately €1.63 billion.
Operations: The company's revenue is derived from two main segments: Benelux, contributing €505.17 million, and France, Spain & Germany, generating €626.41 million.
Insider Ownership: 12%
Earnings Growth Forecast: 77.7% p.a.
Basic-Fit is poised for significant earnings growth, forecasted at 77.68% annually over the next three years, outpacing the Dutch market's 18.6%. Despite lower profit margins and interest payments not being well covered by earnings, revenue is expected to grow at 14.8% per year. Recent investor activism by Buckley Capital Management suggests potential strategic shifts could unlock value, although management has shown reluctance towards a sale despite private equity interest.
Overview: Envipco Holding N.V. designs, develops, manufactures, assembles, markets, sells, leases, and services reverse vending machines for collecting and processing used beverage containers primarily in the Netherlands, North America, and Europe with a market cap of €299.99 million.
Operations: Envipco Holding N.V. generates revenue through the design, development, manufacturing, assembly, marketing, sales, leasing, and servicing of reverse vending machines for used beverage container collection and processing across the Netherlands, North America, and Europe.
Insider Ownership: 36.7%
Earnings Growth Forecast: 82.7% p.a.
Envipco Holding is set for substantial growth, with earnings forecasted to increase by 82.67% annually, significantly outpacing the Dutch market's average. Despite recent share price volatility and past shareholder dilution, the company trades at a significant discount to its estimated fair value. Recent board changes include the resignation of Mr. George Katsaros due to health reasons and new appointments, which may influence strategic direction amid improving financial performance marked by reduced net losses and increased sales revenue.
Overview: PostNL N.V. offers postal and logistics services to businesses and consumers in the Netherlands, Europe, and internationally with a market cap of €619.61 million.
Operations: The company's revenue is primarily derived from its Parcels segment at €2.28 billion and Mail in The Netherlands at €1.35 billion.
Insider Ownership: 35.6%
Earnings Growth Forecast: 36.4% p.a.
PostNL's earnings are forecast to grow significantly at 36.4% annually, outpacing the Dutch market average. Despite trading at a substantial discount to its estimated fair value, the company faces challenges with high debt levels and slower revenue growth compared to the market. Recent financials show modest sales growth but a net loss for six months ending June 2024. The dividend yield is not well covered by earnings, indicating potential sustainability concerns.
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 ENXTAM:BFIT ENXTAM:ENVI and ENXTAM:PNL.
