Exploring adesso And Two Other High Growth Tech Stocks In Germany

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The German market has shown resilience with the DAX index eking out a modest gain amid broader European caution following the U.S. Federal Reserve's recent rate cut. As investors navigate this complex environment, identifying high-growth tech stocks becomes crucial, with companies like adesso standing out due to their innovative capabilities and strong market positioning.

Top 10 High Growth Tech Companies In Germany

Name

Revenue Growth

Earnings Growth

Growth Rating

Formycon

31.78%

30.52%

★★★★★☆

Ströer SE KGaA

7.39%

29.88%

★★★★★☆

Stemmer Imaging

13.34%

23.20%

★★★★★☆

Exasol

14.66%

117.10%

★★★★★☆

ParTec

41.16%

63.31%

★★★★★★

medondo holding

35.61%

82.66%

★★★★★☆

Northern Data

32.53%

68.17%

★★★★★☆

cyan

27.51%

67.79%

★★★★★☆

Rubean

55.25%

67.67%

★★★★★☆

asknet Solutions

20.06%

74.86%

★★★★★☆

Click here to see the full list of 42 stocks from our German High Growth Tech and AI Stocks screener.

We're going to check out a few of the best picks from our screener tool.

adesso

Simply Wall St Growth Rating: ★★★★☆☆

Overview: adesso SE, along with its subsidiaries, offers IT services in Germany, Austria, Switzerland, and internationally and has a market cap of €414.04 million.

Operations: The company generates revenue primarily through its IT-Services (€1385.63 million) and IT-Solutions (€128.12 million) segments, with a net effect of consolidation and reconciliation adjustments totaling -€288.80 million.

Adesso SE, amidst a challenging market, reported a significant sales increase to €633.47 million, up from €548.19 million year-over-year, showcasing robust revenue growth of 11.7% annually—outpacing the German market's average of 5.5%. Despite this, the firm faced a deepened net loss of €9.86 million compared to the previous year's €5.89 million. Looking ahead, Adesso is poised for substantial earnings acceleration with forecasts suggesting an impressive 46.45% annual profit growth rate over the next three years as it transitions towards profitability in a competitive IT landscape where R&D expenditures are critical for maintaining technological edge and innovation.

XTRA:ADN1 Earnings and Revenue Growth as at Sep 2024
XTRA:ADN1 Earnings and Revenue Growth as at Sep 2024

SAP

Simply Wall St Growth Rating: ★★★★☆☆

Overview: SAP SE, along with its subsidiaries, delivers applications, technology, and services globally and has a market cap of €240.64 billion.

Operations: SAP SE, through its subsidiaries, generates revenue primarily from applications, technology, and services amounting to €32.54 billion. The company's cost structure and profit margins are not detailed in the provided data.

SAP SE, navigating a challenging tech landscape, has demonstrated resilience with its R&D investments fueling innovation and growth. The company's revenue is expected to rise by 9.8% annually, outpacing the German market average of 5.5%. This growth is underpinned by SAP’s strategic focus on cloud ERP solutions and AI integration, which are pivotal in maintaining competitive advantage and responding to dynamic market demands. Notably, earnings are projected to surge by 37.9% per year, reflecting robust operational efficiency and market adaptation despite recent one-off losses of €3.3 billion impacting financials. This forward momentum is supported by SAP's active engagement in high-profile conferences and strategic partnerships aimed at expanding its technological footprint and enhancing enterprise architectures globally.

XTRA:SAP Earnings and Revenue Growth as at Sep 2024
XTRA:SAP Earnings and Revenue Growth as at Sep 2024

Ströer SE KGaA

Simply Wall St Growth Rating: ★★★★★☆

Overview: Ströer SE & Co. KGaA offers out-of-home media and online advertising solutions in Germany and internationally, with a market cap of €3.14 billion.

Operations: Ströer SE & Co. KGaA generates revenue primarily from three segments: Out-Of-Home Media (€922.53 million), Digital & Dialog Media (€862.76 million), and Daas & E-Commerce (€357.19 million). The company focuses on providing advertising solutions both in physical outdoor spaces and through digital platforms.

Ströer SE & Co. KGaA, amid a series of high-profile conference presentations, has shown promising financial and operational growth. With a revenue increase to €964.96 million and net income rising to €33.75 million in the first half of 2024, the company is demonstrating robust performance in the competitive media sector. This growth trajectory is bolstered by an R&D investment strategy that aligns with industry demands for innovative advertising solutions, evidenced by an anticipated annual profit surge of 29.9%. Additionally, Ströer's strategic engagements across various international forums underscore its commitment to expanding its market reach and enhancing shareholder value through focused corporate communications and financial strategies.

XTRA:SAX Earnings and Revenue Growth as at Sep 2024
XTRA:SAX Earnings and Revenue Growth as at Sep 2024

Summing It All Up

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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.

Companies discussed in this article include XTRA:ADN1 XTRA:SAP and XTRA:SAX.

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