Amidst a backdrop of political uncertainty and fluctuating markets across Europe, Germany's stock market has also felt the impact, with notable indices such as the DAX experiencing downturns. In such times, investors often look toward companies with high insider ownership as a sign of confidence and stability, suggesting that those at the helm have significant skin in the game and a vested interest in the company's success.
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 €334.33 million.
Operations: The company generates revenue primarily through its Security Technologies and Financial Technologies segments, totaling €39.43 million and €153.43 million respectively.
Insider Ownership: 26.6%
Brockhaus Technologies AG, a German growth company with high insider ownership, is poised for substantial growth. Despite a recent net loss of €1.38 million in Q1 2024, the company's revenue increased to €39.97 million from €33.89 million year-over-year, showing resilience and potential for recovery. With earnings forecasted to grow significantly and expected to become profitable within three years, Brockhaus trades at 72.9% below its estimated fair value, highlighting an intriguing opportunity despite some financial setbacks in the past fiscal year.
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 €525.02 million.
Operations: The company generates revenue primarily through Private Equity Investments and Fund Investment Services, totaling €55.15 million and €47.85 million respectively.
Insider Ownership: 35.4%
Deutsche Beteiligungs AG, a German growth company with significant insider ownership, is set to outpace the local market with forecasted annual earnings and revenue growth of 31.6% and 24.7%, respectively. Despite this robust expansion, its dividend coverage by cash flows remains weak. Recent strategic moves include a share buyback program initiated on May 17, 2024, underscoring confidence in future performance despite a challenging past fiscal half-year where net income notably decreased to €24.6 million from €82.59 million year-over-year.
Overview: Friedrich Vorwerk Group SE specializes in offering solutions for the transformation and transportation of energy within Germany and Europe, with a market capitalization of approximately €0.37 billion.
Operations: The company generates revenue through segments focused on electricity (€72.07 million), natural gas (€157.60 million), clean hydrogen (€28.59 million), and adjacent opportunities (€118.73 million).
Insider Ownership: 18%
Friedrich Vorwerk Group SE, aligning with Germany's growth entities with substantial insider ownership, is anticipated to see earnings increase by 30.4% annually, outperforming the broader German market's 18.5%. While its revenue growth at 7.9% yearly surpasses the national average of 5.1%, it remains below the aggressive 20% threshold often associated with high-growth firms. Recent financials show a positive trajectory in earnings and revenue in Q1 2024, suggesting a stable upward trend despite modest past performance indicators like a low forecasted return on equity of 11%.
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:DBAN and XTRA:VH2.
