Amidst a backdrop of political uncertainty and fluctuating market conditions across Europe, Germany's market has shown resilience, albeit with some declines. In such an environment, growth companies with substantial insider ownership can offer a unique investment appeal, potentially signaling strong confidence from those closest to the company in its future prospects.
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 €325.97 million.
Operations: The firm's revenue is primarily generated from its Financial Technologies and Security Technologies segments, contributing €153.43 million and €39.43 million respectively.
Insider Ownership: 26.6%
Brockhaus Technologies AG, a German growth company with substantial insider ownership, is set to become profitable within the next three years, outpacing average market expectations. Despite a recent net loss of €1.38 million in Q1 2024 and a significant loss in FY 2023, the company forecasts strong revenue growth between €220 million and €240 million for FY 2024. This represents an organic growth rate of 18% to 29% year-over-year, highlighting potential recovery and expansion despite current profitability challenges.
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 €506.41 million.
Operations: The company generates revenue primarily through two segments: Fund Investment Services at €47.85 million and Private Equity Investments at €55.15 million.
Insider Ownership: 35.4%
Deutsche Beteiligungs AG, with substantial insider ownership, is poised for significant growth, with earnings and revenue forecast to outpace the German market substantially. Despite trading 74.4% below its estimated fair value and a dividend coverage issue due to inadequate cash flow coverage, the company's aggressive share repurchase program underscores a commitment to enhancing shareholder value. However, its Return on Equity is expected to remain low at 17.5% in three years.
Overview: Stratec SE operates globally, designing and manufacturing automation and instrumentation solutions for in-vitro diagnostics and life sciences, with a market cap of approximately €0.57 billion.
Operations: The company generates its revenue by designing and manufacturing solutions for in-vitro diagnostics and life sciences, serving clients in Germany, the European Union, and internationally.
Insider Ownership: 30.9%
Stratec SE, a German growth company with high insider ownership, is trading at 41.6% below its estimated fair value, indicating potential undervaluation. The company's revenue and earnings are expected to grow by 7.9% and 22% per year respectively, outpacing the broader German market rates of 5.1% and 18.7%. However, recent financials show a downturn with a decrease in net income and profit margins from the previous year, alongside a reduced dividend proposal reflecting potential cash flow challenges.
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:BKHT XTRA:SBS and