Amid fluctuating global markets, Germany's DAX index recently experienced a slight downturn, shedding 0.36% in its latest performance. This backdrop sets the stage for an exploration of growth companies within this market, particularly those with high insider ownership—a factor that can signal strong confidence in a company's future from those who know it best.
Top 10 Growth Companies With High Insider Ownership In Germany
Overview: Hypoport SE is a technology-based financial service provider in Germany, with a market capitalization of approximately €2.03 billion.
Operations: This firm operates primarily in the technology-based financial services sector within Germany.
Insider Ownership: 35.1%
Earnings Growth Forecast: 35.9% p.a.
Hypoport SE, a growth-oriented company with substantial insider ownership in Germany, reported a significant uptick in its financial performance. For Q1 2024, sales increased to €107.47 million from €93.72 million year-over-year, with net income rising sharply to €3.04 million from €0.503 million. Despite challenges such as large one-off items impacting earnings and a forecasted low return on equity of 9.1% in three years, the company's revenue and earnings are expected to outpace the German market significantly over the next few years.
Overview: Stratec SE, operating globally, specializes in designing and manufacturing automation and instrumentation solutions for in-vitro diagnostics and life sciences, with a market capitalization of approximately €0.53 billion.
Operations: The company generates its revenue from designing and manufacturing automation and instrumentation solutions for in-vitro diagnostics and life sciences sectors.
Insider Ownership: 30.9%
Earnings Growth Forecast: 22% p.a.
Stratec SE, a German growth company with high insider ownership, reported a decrease in Q1 2024 sales to €50.87 million and net income to €0.447 million from the previous year. Despite this downturn, Stratec is trading at 46.2% below its estimated fair value and forecasts suggest an earnings growth of 22% per year, outpacing the German market's 18.7%. However, the company's debt is poorly covered by operating cash flow and recent profit margins have declined to 4.8%.
Overview: Friedrich Vorwerk Group SE specializes in offering solutions for the transformation and transportation of energy across Germany and Europe, with a market capitalization of approximately €0.33 billion.
Operations: The company generates its revenue through specialized solutions in energy transformation and transportation across Germany and Europe.
Insider Ownership: 18%
Earnings Growth Forecast: 29.9% p.a.
Friedrich Vorwerk Group SE, a German growth company with high insider ownership, has shown promising financial performance in Q1 2024 with sales increasing to €76.71 million and net income improving to €1.56 million from the previous year. The company is trading at 10.3% below its estimated fair value and expects significant earnings growth of 29.9% per year, surpassing the German market's forecast of 18.7%. Despite these strengths, its return on equity is projected to be low at 10.9% in three years' time.
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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.
