Amidst a generally positive trend in European markets, where Germany's DAX index recently saw a notable gain of 0.90%, investors continue to seek opportunities that combine growth potential with strong insider commitment. In this context, stocks with high insider ownership can be particularly appealing, as they often indicate confidence from those who know the company best—its executives and key stakeholders.
Top 10 Growth Companies With High Insider Ownership In Germany
Overview: Deutsche Beteiligungs AG is a private equity and venture capital firm that focuses on direct and fund of funds investments, with a market capitalization of approximately €519.94 million.
Operations: The company generates revenue primarily through Private Equity Investments and Fund Investment Services, amounting to €55.15 million and €47.85 million respectively.
Insider Ownership: 35.4%
Earnings Growth Forecast: 31.6% p.a.
Deutsche Beteiligungs AG, a notable entity in the German market, demonstrates robust growth potential with earnings expected to increase by 31.56% annually. Despite recent revenue declines—from €103.33 million to €49.98 million—future revenue is projected to grow at 24.7% per year, outpacing the German market's 5.2%. The firm's strategic buyback program, involving up to €25 million for share repurchases until February 2025, underscores strong insider confidence despite its current undervaluation at 73.8% below fair value estimates and a low forecasted Return on Equity of 17.5%.
Overview: Hypoport SE is a technology-based financial service provider in Germany, with a market capitalization of approximately €1.997 billion.
Operations: The company generates revenue primarily through its Credit Platform and Insurance Platform, with €155.60 million and €66.29 million respectively.
Insider Ownership: 35.1%
Earnings Growth Forecast: 31.9% p.a.
Hypoport SE, a growth-oriented company in Germany, reported a significant increase in first-quarter earnings for 2024, with sales rising to €107.47 million from €93.72 million year-over-year and net income increasing to €3.04 million from €0.503 million. Despite the high volatility in its share price over the past three months, Hypoport's earnings are expected to grow by 31.9% annually, outperforming the German market forecast of 18.6%. However, its forecasted Return on Equity is considered low at 9.1% in three years' time.
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 €2.38 billion.
Operations: The company generates revenue primarily through its DACH segment, which contributed €1.62 billion, and its International operations, which added €0.37 billion.
Insider Ownership: 17.7%
Earnings Growth Forecast: 46.9% p.a.
Redcare Pharmacy, a growth company in Germany, reported an increase in Q1 2024 sales to €560.22 million from €372.05 million year-over-year, while reducing its net loss to €7.81 million from €10.22 million. Despite trading at 40.7% below its estimated fair value and lacking recent insider buying or selling data, Redcare is anticipated to turn profitable within three years with expected revenue growth outpacing the German market at 17% annually versus 5.2%. However, shareholder dilution occurred over the past year and its forecasted Return on Equity remains low at 12.9%.
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:DBAN XTRA:HYQXTRA:RDC and
