As global economic concerns weigh on markets, the German DAX index has not been immune, reflecting a broader European decline amid fears of slowing growth. Despite this challenging backdrop, certain growth companies in Germany have managed to stand out due to their strong fundamentals and high insider ownership. In today's volatile market environment, stocks with significant insider ownership can be particularly attractive as they often indicate confidence from those closest to the company. This article will explore three such German growth stocks that have demonstrated impressive earnings growth of up to 93%.
Top 10 Growth Companies With High Insider Ownership In Germany
Overview: Brockhaus Technologies AG is a private equity firm with a market cap of €296.71 million.
Operations: Security Technologies and Financial Technologies are the primary revenue segments, generating €37.03 million and €174.59 million respectively.
Insider Ownership: 26.6%
Earnings Growth Forecast: 93% p.a.
Brockhaus Technologies, a growth company with high insider ownership in Germany, confirmed its 2024 revenue forecast between €220 million and €240 million and maintains a medium-term outlook for 2025. Despite reporting H1 2024 sales of €109.43 million, up from €84.59 million last year, the net loss widened to €6.65 million from €0.765 million. Revenue is expected to grow annually at 16.8%, outpacing the German market's average growth rate of 5.4%.
Overview: Hypoport SE develops and markets technology platforms for the financial services, property, and insurance industries in Germany, with a market cap of €1.68 billion.
Operations: The company's revenue segments include €157.97 million from its Credit Platform, €66.89 million from its Insurance Platform, and €175.87 million from Segment Adjustment.
Insider Ownership: 35%
Earnings Growth Forecast: 35% p.a.
Hypoport's earnings are forecast to grow 35% annually, significantly outpacing the German market's 19.9%. Despite a highly volatile share price over the past three months, recent results show strong performance: Q2 sales rose to €110.62 million from €85.29 million last year, and net income reached €2.4 million compared to a net loss of €2.61 million previously. The company has become profitable this year but faces challenges with large one-off items impacting financial results.
Overview: Verve Group SE operates a software platform for the automated buying and selling of digital advertising space in North America and Europe, with a market cap of €593.55 million.
Operations: Demand Side Platforms (DSP) generated €57.59 million, while Supply Side Platforms (SSP) contributed €341.35 million in revenue for Verve Group SE.
Insider Ownership: 25.1%
Earnings Growth Forecast: 20% p.a.
Verve Group SE, a growth company with high insider ownership, has shown impressive financial performance and strategic moves. Q2 2024 earnings saw sales rise to €102.82 million from €82.56 million a year ago, with net income increasing to €6.26 million from €1.74 million. The company raised its 2024 revenue guidance to up to €420 million and completed a fixed-income offering of €66.63 million, reducing financing costs significantly through refinancing efforts post-acquisition of Jun Group Productions LLC.
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 XTRA:BKHT XTRA:HYQ and XTRA:M8G.
