Amidst a backdrop of modest gains in global markets and a particularly robust performance from Germany's DAX, which saw an increase of 0.90%, investors are keenly observing trends that could signal growth opportunities. In this context, examining growth companies with high insider ownership in Germany becomes particularly relevant as these firms often demonstrate strong commitment to their future prospects, aligning closely with current market resilience and investor confidence in sustained economic stability.
Top 10 Growth Companies With High Insider Ownership In Germany
Overview: Deutsche Beteiligungs AG is a private equity and venture capital firm that focuses on direct and fund of fund investments, with a market capitalization of approximately €519.94 million.
Operations: The company generates revenue primarily through Fund Investment Services and Private Equity Investments, totaling €47.85 million and €55.15 million respectively.
Insider Ownership: 35.4%
Revenue Growth Forecast: 24.7% p.a.
Deutsche Beteiligungs AG (DBAN) is positioned favorably with earnings forecasted to grow by 31.6% annually, outpacing the German market's 18.6%. This growth is mirrored in its revenue projections, expected to increase by 24.7% yearly, significantly above the market average of 5.2%. Despite a robust growth outlook and trading at a substantial discount—73.8% below estimated fair value—concerns linger as its dividend coverage by cash flows remains weak. Recent activities include a €25 million share repurchase program initiated on May 17, 2024, underscoring commitment to shareholder returns despite past revenue and net income declines reported in the first half of 2024.
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, totaling €155.60 million and €66.29 million respectively.
Insider Ownership: 35.1%
Revenue Growth Forecast: 13.4% p.a.
Hypoport SE, a German growth company with high insider ownership, has shown promising financial performance with a significant increase in both quarterly and annual earnings. Recent results indicate sales rising to €107.47 million from €93.72 million in the previous year's quarter and net income improving markedly to €3.04 million from €0.503 million. Despite its volatile share price, Hypoport is expected to outperform the German market with forecasted revenue growth of 13.4% annually and earnings growth of 31.9% per year, although it faces challenges such as low forecasted return on equity and the impact of one-off items on earnings quality.
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 two segments: the DACH region, contributing €1.62 billion, and other international markets, adding €0.37 billion.
Insider Ownership: 17.7%
Revenue Growth Forecast: 17% p.a.
Redcare Pharmacy, a German growth company with substantial insider ownership, reported a significant increase in Q1 sales to €560.22 million from €372.05 million year-over-year while reducing net losses to €7.81 million from €10.22 million. Despite trading at 40.7% below its estimated fair value, Redcare is expected to turn profitable within three years with revenue growth forecasted at 17% annually—faster than the German market's 5.2%. Challenges include a low forecasted return on equity of 12.9% and recent shareholder dilution.
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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.
Companies discussed in this article include XTRA:DBANXTRA:HYQ and XTRA:RDC
