Amid a backdrop of mixed global economic signals, Germany's market has shown resilience, with the DAX index posting modest gains. This environment underscores the appeal of growth companies, particularly those with substantial insider ownership which often signals confidence in the company's future prospects from those who know it best.
Top 10 Growth Companies With High Insider Ownership In Germany
Overview: Brockhaus Technologies AG is a private equity firm with a market capitalization of approximately €309.25 million.
Operations: Brockhaus Technologies AG generates revenue primarily through two segments: Security Technologies (€39.43 million) and Financial Technologies (€153.43 million).
Insider Ownership: 26.6%
Brockhaus Technologies AG, a German growth company with significant insider ownership, is navigating through a challenging phase marked by recent losses but shows promising revenue growth forecasts. While the company's return on equity is expected to remain modest at 10.3%, its revenue is projected to grow at 17.8% annually, outpacing the German market average of 5.2%. Despite recent financial setbacks, Brockhaus has initiated dividend payments and completed a substantial share buyback program, signaling confidence in its future profitability and growth prospects.
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 €533.40 million.
Operations: The company generates revenue primarily through two segments: Fund Investment Services, which brought in €47.85 million, and Private Equity Investments, contributing €55.15 million.
Insider Ownership: 35.4%
Deutsche Beteiligungs AG, reflecting substantial growth potential, is trading at 73.9% below its estimated fair value and analysts expect a significant price increase of 58.8%. Earnings have surged by 130.1% over the past year with forecasts suggesting a robust annual growth of 31.6%, outstripping the German market's 18.6%. Despite high revenue growth projections of 24.7% annually, dividends are poorly covered by cash flows. Recently, the company initiated a €25 million share buyback program to repurchase up to 850,000 shares by early 2025.
Overview: Stratec SE operates in designing and manufacturing automation and instrumentation solutions for in-vitro diagnostics and life sciences, serving markets in Germany, the European Union, and internationally, with a market capitalization of approximately €0.59 billion.
Operations: The company generates its revenue by designing and manufacturing solutions for in-vitro diagnostics and life sciences across Germany, the European Union, and other global markets.
Insider Ownership: 30.9%
Stratec SE, a German growth company with high insider ownership, faces challenges despite its potential. The firm's revenue is set to outpace the local market with a 7.9% annual increase, yet recent financials show a downturn: Q1 sales dropped to €50.87 million from €60.48 million year-over-year, and net income fell significantly to €0.447 million. Moreover, Stratec's profit margins have declined from last year, impacting overall performance despite being valued at 40.6% below fair value.
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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.
