Amid a backdrop of mixed global economic signals, Germany's DAX index has shown resilience, modestly climbing by 0.32% this past week. This stability in the market underscores the potential value of investing in growth companies with high insider ownership, which often signals strong confidence from those most familiar with the company's prospects and operations.
Top 10 Growth Companies With High Insider Ownership In Germany
Overview: Brockhaus Technologies AG operates as a private equity firm with a market capitalization of approximately €307.16 million.
Operations: Brockhaus Technologies AG generates revenue primarily through its Security Technologies and Financial Technologies segments, with contributions of €39.43 million and €153.43 million respectively.
Insider Ownership: 26.6%
Earnings Growth Forecast: 74.2% p.a.
Brockhaus Technologies, a German growth company with significant insider ownership, recently reported a shift in financial performance. In Q1 2024, revenue increased to €39.97 million from €33.89 million year-over-year, yet the firm faced a rising net loss of €1.38 million compared to €0.488 million previously. Despite these challenges, Brockhaus anticipates strong revenue growth for 2024 (between €220 million and €240 million), reflecting an optimistic outlook on organic expansion and potential profitability within three years. Additionally, the initiation of a dividend suggests confidence in sustained future earnings.
Overview: Deutsche Beteiligungs AG is a private equity and venture capital firm that focuses on direct and fund of fund investments, with a market capitalization of approximately €523.16 million.
Operations: The company generates revenue primarily from two segments: Fund Investment Services (€47.85 million) and Private Equity Investments (€55.15 million).
Insider Ownership: 35.4%
Earnings Growth Forecast: 31.6% p.a.
Deutsche Beteiligungs AG, a German company with high insider ownership, has demonstrated robust growth with earnings increasing by 130.1% over the past year. It trades at 73.1% below its estimated fair value and analysts predict a significant price rise of 53.5%. Expected to outpace the German market, its revenue and earnings are forecasted to grow annually at 24.7% and 31.6%, respectively. However, its dividend coverage is weak, and return on equity is expected to be low at 17.5%. Recently, the firm initiated a share repurchase program valued at €25 million, underscoring management's confidence in its valuation.
Overview: Redcare Pharmacy NV is an online pharmacy operating across the Netherlands, Germany, Italy, Belgium, Switzerland, Austria, and France with a market capitalization of approximately €2.40 billion.
Operations: The company generates revenue primarily through two segments: the DACH region, contributing €1.62 billion, and other international markets, adding €0.37 billion.
Insider Ownership: 17.7%
Earnings Growth Forecast: 46.9% p.a.
Redcare Pharmacy NV, a German growth company with high insider ownership, reported a substantial increase in first-quarter sales to €560.22 million from €372.05 million year-over-year, reducing its net loss to €7.81 million from €10.22 million. Despite trading at 40.8% below its fair value and experiencing high share price volatility recently, the company is expected to grow revenue by 17% annually—outpacing the German market's 5.2%. Forecasted to become profitable within three years, Redcare's earnings could rise by nearly 47% per year, although it has seen some shareholder dilution over the past year.
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.
