Amidst cautious optimism in Europe, the pan-European STOXX Europe 600 Index has shown slight gains as investors navigate U.S. trade policy developments and efforts to resolve the Russia-Ukraine conflict. In this environment, growth companies with high insider ownership can present intriguing opportunities, as such ownership often signals confidence from those closest to the business and may align management's interests with shareholders'.
Top 10 Growth Companies With High Insider Ownership In Europe
Overview: CVC Capital Partners plc is a private equity and venture capital firm that focuses on middle market secondaries, infrastructure and credit, management buyouts, leveraged buyouts, growth equity, mature investments, recapitalizations, strip sales, and spinouts with a market cap of €24.61 billion.
Operations: CVC Capital Partners plc generates revenue through its focus on private equity and venture capital activities, specializing in areas such as middle market secondaries, infrastructure and credit investments, management and leveraged buyouts, growth equity, mature investments, recapitalizations, strip sales, and spinouts.
Insider Ownership: 20.2%
CVC Capital Partners is experiencing significant earnings growth, forecasted at 27.44% annually, outpacing the Dutch market's 12.6%. Despite a high debt level, it trades at an attractive valuation, 11.6% below its estimated fair value. Recent M&A activity includes potential acquisitions and divestments in the healthcare and telecommunications sectors. Insider ownership remains strong with no substantial insider trading reported recently, supporting confidence in its strategic direction amidst ongoing market maneuvers.
Overview: NIBE Industrier AB (publ) is a company that, along with its subsidiaries, develops, manufactures, markets, and sells energy-efficient solutions for indoor climate comfort and intelligent heating and control across Nordic countries, Europe, North America, and internationally; it has a market cap of approximately SEK83.16 billion.
Operations: The company's revenue segments consist of SEK3.86 billion from Stoves, SEK11.09 billion from Element, and SEK26.04 billion from Climate Solutions.
Insider Ownership: 20.2%
NIBE Industrier demonstrates robust earnings growth potential, forecasted at 27.6% annually, surpassing the Swedish market's 9.6%. Despite a recent dip in annual sales to SEK 40.52 billion and reduced profit margins from 10.3% to 2.9%, the company maintains strong insider ownership with no significant insider trading activity reported recently. However, interest payments are not well covered by earnings, and return on equity is expected to remain low at 10.7%.
Overview: Redcare Pharmacy NV operates as an online pharmacy across the Netherlands, Germany, Italy, Belgium, Switzerland, Austria, and France with a market cap of €2.51 billion.
Operations: The company generates revenue from two main segments: DACH, contributing €1.82 billion, and International, contributing €410.50 million.
Insider Ownership: 11.7%
Redcare Pharmacy's revenue is forecast to grow at 16.3% annually, outpacing the German market's 5.8%, though slower than the ideal 20%. Earnings are expected to rise by 58.28% yearly, with profitability anticipated within three years, surpassing average market growth. Insider confidence is evident through substantial share purchases over the past three months and no significant sales. Trading significantly below estimated fair value enhances its appeal despite a low future return on equity forecast of 17%.
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 ENXTAM:CVC OM:NIBE B and XTRA:RDC.
