Amidst a generally positive week for major European stock indices, with Germany’s DAX gaining 0.90%, investors continue to navigate through varying economic signals across the region. In such a market environment, companies with high insider ownership can be particularly appealing as they often signal strong confidence from those closest to the business in its growth prospects and financial health.
Top 10 Growth Companies With High Insider Ownership In Germany
Overview: Deutsche Beteiligungs AG is a private equity and venture capital firm focusing on direct and fund of fund investments, with a market capitalization of approximately €519.94 million.
Operations: The company generates revenue primarily from two segments: Fund Investment Services and Private Equity Investments, contributing €47.85 million and €55.15 million respectively.
Insider Ownership: 35.4%
Revenue Growth Forecast: 24.7% p.a.
Deutsche Beteiligungs AG (DBAN) has demonstrated robust growth, with earnings increasing by 130.1% over the past year and expected to grow by 31.56% annually. Despite trading at 73.8% below its estimated fair value, concerns arise as its Return on Equity is forecasted to be low at 17.5%. The company's revenue growth is projected to outpace the German market significantly, yet its dividend sustainability is questionable due to inadequate cash flow coverage. Recent activities include a share buyback program initiated in May 2024, signaling potential confidence by management in the stock's value.
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 through its Credit Platform and Insurance Platform segments, with €155.60 million and €66.29 million respectively.
Insider Ownership: 35.1%
Revenue Growth Forecast: 13.4% p.a.
Hypoport SE's financial performance shows promise with a significant earnings increase of 240.5% over the past year and expected annual growth of 31.89%. Despite this, its forecasted revenue growth of 13.4% per year lags behind the high-growth benchmark of 20%. The company also faces challenges with low forecasted Return on Equity at 9.1% and earnings impacted by large one-off items, suggesting potential quality concerns. Recent events include a strong Q1 report for 2024, with sales rising to €107.47 million from €93.72 million in the previous year, reflecting ongoing operational improvements.
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 region (€1.62 billion) and other international markets (€0.37 billion).
Insider Ownership: 17.7%
Revenue Growth Forecast: 17% p.a.
Redcare Pharmacy is poised for robust growth with its revenue expected to increase by 17% annually, outpacing the German market average of 5.2%. While it's not reaching the high-growth benchmark of 20%, the company is on track to become profitable within three years, a positive shift from its current state. However, challenges include shareholder dilution over the past year and a trading value significantly below estimated fair value. Recent earnings show improvement with Q1 sales up to €560.22 million from €372.05 million year-over-year, alongside a reduced net loss of €7.81 million down from €10.22 million.
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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.
