As the German DAX index reaches new heights amid a backdrop of slowing inflation, investor sentiment remains cautiously optimistic. This environment sets the stage for identifying high-growth stocks with strong insider ownership, which can be particularly appealing given their potential for aligned interests and robust performance. In this article, we will explore three such companies listed on the German exchange that exemplify these characteristics.
Top 10 Growth Companies With High Insider Ownership In Germany
Overview: adidas AG, with a market cap of €41.07 billion, designs, develops, produces, and markets athletic and sports lifestyle products across Europe, the Middle East, Africa, North America, Greater China, the Asia-Pacific region, and Latin America.
Operations: The company's revenue segments include €3.26 billion from Greater China, €2.39 billion from Latin America, and €5.07 billion from North America.
Insider Ownership: 16.6%
Earnings Growth Forecast: 41.8% p.a.
adidas AG, a growth company with high insider ownership in Germany, has shown strong financial performance recently. In Q2 2024, sales reached €5.82 billion compared to €5.34 billion a year ago, and net income rose to €190 million from €84 million. The company revised its full-year guidance upwards due to better-than-expected results and now anticipates operating profit around €1 billion. Earnings are forecasted to grow significantly at 41.8% per year over the next three years, with revenue expected to outpace the German market's growth rate of 5.4% annually.
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 €600.07 million.
Operations: Verve Group SE generates revenue primarily from its Supply Side Platforms (SSP) segment at €341.35 million and its Demand Side Platforms (DSP) segment at €57.59 million.
Insider Ownership: 25.1%
Earnings Growth Forecast: 20.5% p.a.
Verve Group SE, characterized by high insider ownership, has demonstrated robust growth. In Q2 2024, sales surged to €102.82 million from €82.56 million a year ago, with net income rising to €6.26 million from €1.74 million. The company raised its 2024 revenue guidance to between €400-€420 million and completed a follow-on equity offering of SEK 450 million in June 2024. Despite recent volatility in share price and past dilution, earnings are forecasted to grow significantly at over 20% annually for the next three years.
Overview: Friedrich Vorwerk Group SE offers solutions for the transformation and transportation of energy in Germany and Europe, with a market cap of €453 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 SE, with high insider ownership, reported strong Q2 2024 results: sales increased to €117.41 million from €92.55 million and net income rose to €7.96 million from €2.38 million year-over-year. The company updated its 2024 revenue guidance to over €410 million, indicating at least 10% growth compared to 2023. Earnings are forecasted to grow significantly at 24.63% annually over the next three years, outpacing the German market's average earnings growth rate of 19.7%.
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:ADS XTRA:M8G and XTRA:VH2.
