The German market has shown resilience amid global economic shifts, with the DAX index posting modest gains despite broader European caution following the U.S. Federal Reserve's interest rate cut. In this context, identifying growth stocks with substantial insider ownership can be particularly valuable, as these companies often demonstrate strong earnings potential and alignment between management and shareholder interests. In this article, we will explore three German growth stocks that have achieved an impressive 51% earnings growth while maintaining high levels of insider ownership.
Top 10 Growth Companies With High Insider Ownership In Germany
Overview: Redcare Pharmacy NV operates an online pharmacy business across the Netherlands, Germany, Italy, Belgium, Switzerland, Austria, and France with a market cap of €2.45 billion.
Operations: The company's revenue segments include €1.74 billion from the DACH region and €391 million from International markets.
Insider Ownership: 17.4%
Earnings Growth Forecast: 51.8% p.a.
Redcare Pharmacy's revenue is forecast to grow at 17.1% per year, outpacing the German market's 5.5%. Despite a net loss of €12.07 million for H1 2024, this is an improvement from last year's €14.78 million loss. Insiders have been buying more shares than selling in the past three months, indicating confidence in future profitability within three years. The stock trades at 70.1% below its estimated fair value but has experienced high volatility recently.
Overview: Friedrich Vorwerk Group SE offers solutions for the transformation and transportation of energy in Germany and Europe, with a market cap of €468 million.
Operations: Revenue segments for Friedrich Vorwerk Group SE include Electricity (€95.30 million), Natural Gas (€160.89 million), Clean Hydrogen (€28.38 million), and Adjacent Opportunities (€117.28 million).
Insider Ownership: 18%
Earnings Growth Forecast: 24.6% p.a.
Friedrich Vorwerk Group's revenue is expected to grow at 9.7% annually, outpacing the German market's 5.5%. Earnings are forecast to rise significantly at 24.6% per year, faster than the market's 20.1%. Recent earnings showed substantial improvement with Q2 net income of €7.96 million compared to €2.38 million a year ago and updated guidance projects over €410 million in revenue for 2024, indicating continued growth momentum without significant insider trading activity recently reported.
Overview: Zalando SE operates an online platform for fashion and lifestyle products and has a market cap of €6.89 billion.
Operations: Zalando SE generates revenue of €10.49 billion from its online fashion and lifestyle platform.
Insider Ownership: 10.4%
Earnings Growth Forecast: 25.1% p.a.
Zalando SE's earnings grew by 84.3% over the past year, with revenue for Q2 2024 at €2.64 billion and net income at €95.7 million, up from €56.6 million a year ago. Earnings are forecast to grow by 25.15% annually, outpacing the German market's average of 20.1%. Despite trading at 53.8% below fair value estimates and recent CFO departure news, Zalando remains a growth company with significant insider ownership and no substantial insider trading reported recently.
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:RDC XTRA:VH2 and XTRA:ZAL.
