The German market has been relatively stable, with the DAX gaining 1.35% recently, driven by positive earnings reports and investor optimism. Amid this backdrop, identifying growth companies with high insider ownership can be particularly advantageous as it often signals confidence in the company's future prospects. In this article, we will explore three German growth stocks that exhibit substantial insider ownership and impressive earnings growth of up to 49%.
Top 10 Growth Companies With High Insider Ownership In Germany
Overview: Hypoport SE develops and markets technology platforms for the financial services, property, and insurance industries in Germany, with a market cap of €1.78 billion.
Operations: Hypoport's revenue segments include €155.60 million from the Credit Platform and €66.29 million from the Insurance Platform, with a segment adjustment of €153.22 million.
Insider Ownership: 35.1%
Earnings Growth Forecast: 33.2% p.a.
Hypoport SE, a growth company with high insider ownership in Germany, has shown significant earnings growth, with net income for Q1 2024 at €3.04 million compared to €0.50 million a year ago. Revenue is forecast to grow at 13.1% per year, outpacing the German market's 5.3%. However, the share price has been highly volatile recently and large one-off items have impacted financial results. Earnings are expected to grow significantly over the next three years at 33.2% annually.
Overview: Redcare Pharmacy NV operates an online pharmacy business across the Netherlands, Germany, Italy, Belgium, Switzerland, Austria, and France with a market cap of €2.79 billion.
Operations: Redcare Pharmacy NV generates revenue from its online pharmacy operations in the Netherlands, Germany, Italy, Belgium, Switzerland, Austria, and France.
Insider Ownership: 17.7%
Earnings Growth Forecast: 49.7% p.a.
Redcare Pharmacy has shown substantial growth, with recent half-year sales reaching €1.12 billion, up from €791.94 million a year ago. Despite a net loss of €12.07 million, the loss per share improved to €0.6 from €0.79. Trading at 57% below its estimated fair value and expected to become profitable in three years, RDC's revenue is forecast to grow at 17% annually, outpacing the German market’s 5.3%. However, shareholders experienced dilution over the past year and the share price has been highly volatile recently.
Overview: Zalando SE operates an online platform for fashion and lifestyle products, with a market cap of approximately €6.28 billion.
Operations: The company's revenue segments include €10.40 billion from its online platform for fashion and lifestyle products.
Insider Ownership: 10.4%
Earnings Growth Forecast: 26.5% p.a.
Zalando SE, a growth company with substantial insider ownership, is forecast to see earnings grow at 26.49% annually, significantly outpacing the German market's 19.6%. Despite this strong profit outlook, revenue growth is expected to be modest at 5.4% per year. The company recently provided guidance for up to 5% sales growth in 2024 and anticipates an operating profit. Trading at a notable discount of nearly 57% below its estimated fair value, Zalando remains an interesting prospect despite its low projected return on equity of 12.6%.
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:HYQ XTRA:RDC and XTRA:ZAL.
