Amid the backdrop of mixed economic signals in Europe and a cautious consumer environment, the Dutch market has shown resilience with the pan-European STOXX Europe 600 Index ending slightly higher. As investors navigate these uncertain waters, identifying growth companies with high insider ownership can offer a unique advantage, as these firms often demonstrate strong internal confidence and alignment with shareholder interests. In this context, we explore three standout stocks on Euronext Amsterdam that not only exhibit significant insider ownership but are also poised for substantial earnings growth.
Top 5 Growth Companies With High Insider Ownership In The Netherlands
Overview: Basic-Fit N.V., with a market cap of €1.46 billion, operates fitness clubs through its subsidiaries.
Operations: Basic-Fit N.V. generates revenue of €505.17 million from Benelux and €626.41 million from France, Spain, and Germany.
Insider Ownership: 12%
Earnings Growth Forecast: 78.3% p.a.
Basic-Fit is a growth company in the Netherlands with high insider ownership. The company's revenue is forecast to grow at 15.1% per year, outpacing the Dutch market's 9.8%. Earnings are expected to increase significantly by 78.3% annually over the next three years, well above market averages. Despite a slight decline in profit margins and highly volatile share prices recently, there has been more insider buying than selling in the past three months. Recent earnings reports show improved financial performance, with net income rising to €4.18 million from a net loss of €6.12 million last year and revenue reaching €584.76 million for H1 2024 compared to €500.42 million previously.
Overview: Envipco Holding N.V., with a market cap of €317.30 million, designs, develops, manufactures, assembles, markets, sells, leases, and services reverse vending machines (RVM) for collecting and processing used beverage containers primarily in the Netherlands, North America, and the rest of Europe.
Operations: Envipco Holding N.V. generates revenue by designing, developing, manufacturing, assembling, marketing, selling, leasing, and servicing reverse vending machines (RVM) for the collection and processing of used beverage containers in the Netherlands, North America, and Europe.
Insider Ownership: 36.7%
Earnings Growth Forecast: 68.9% p.a.
Envipco Holding has demonstrated significant growth potential with its earnings forecasted to increase by 68.9% annually, outpacing the Dutch market's 19.6%. Recent earnings reports highlight a substantial rise in sales to €27.44 million for Q1 2024, up from €10.41 million last year, and a shift from a net loss to a modest profit of €0.147 million. Despite high share price volatility and past shareholder dilution, insider buying has exceeded selling in recent months, indicating confidence in future performance.
Overview: MotorK plc, with a market cap of €267.15 million, provides software-as-a-service solutions for the automotive retail industry across Italy, Spain, France, Germany, and the Benelux Union.
Operations: MotorK plc generates €42.50 million in revenue from its Software & Programming segment, offering software-as-a-service solutions for the automotive retail industry across multiple European markets.
Insider Ownership: 35.8%
Earnings Growth Forecast: 108.4% p.a.
MotorK is expected to become profitable within three years, with revenue forecasted to grow 22.1% annually, outpacing the Dutch market's 9.8%. However, the company has less than one year of cash runway and has diluted shareholders in the past year. Recent earnings show a slight decrease in sales to €21.46 million for H1 2024 and a reduced net loss of €6.48 million. Significant executive changes include appointing Zoltan Gelencser as CFO starting August 2024.
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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:MTRK.
