Amidst a backdrop of mixed performance across major European stock markets, Germany's DAX index has shown resilience with a modest rise. This context sets the stage for exploring growth companies in Germany, particularly those with substantial insider ownership, which can be a marker of confidence in the company's prospects from those who know it best.
Top 10 Growth Companies With High Insider Ownership In Germany
Overview: Stratec SE operates globally, designing and manufacturing automation and instrumentation solutions for in-vitro diagnostics and life sciences, with a market capitalization of approximately €0.56 billion.
Operations: The company generates its revenue by designing and manufacturing automation and instrumentation solutions for in-vitro diagnostics and life sciences, primarily in Germany, the European Union, and other international markets.
Insider Ownership: 30.9%
Stratec SE, a German growth company with high insider ownership, faces mixed financial prospects. While its earnings are expected to grow significantly at 21.85% annually, surpassing the German market average of 18.6%, its revenue growth is less impressive at 7.8% per year, though still above the market's 5.2%. Recent financial results indicate a downturn, with Q1 sales and net income declining from the previous year to €50.87 million and €0.447 million respectively, reflecting lower profitability and operational challenges.
Overview: Friedrich Vorwerk Group SE specializes in offering solutions for the transformation and transportation of energy across Germany and Europe, with a market capitalization of approximately €364 million.
Operations: The company generates revenue from various segments including 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, a German company with high insider ownership, is poised for significant earnings growth at 30.45% annually, outpacing the broader German market's 18.6%. However, its revenue growth of 8.3% per year, though above the market average of 5.2%, suggests moderate expansion. Recent financials show improvement with Q1 net income rising to €1.56 million from €0.748 million year-over-year and revenue increasing to €81.2 million from €78.51 million, signaling operational progress despite a forecasted low return on equity of 11% in three years.
Overview: Zalando SE is an online retailer specializing in fashion and lifestyle products, with a market capitalization of approximately €5.87 billion.
Operations: The company generates €10.40 billion in revenue from its online fashion and lifestyle platform.
Insider Ownership: 10.4%
Zalando SE, a growth-focused company in Germany with high insider ownership, trades at 55% below its estimated fair value, indicating potential undervaluation. Despite a modest revenue growth forecast of 5.4% per year, earnings are expected to surge by 26.56% annually over the next three years. Recent activities include several conference presentations and an earnings guidance suggesting stable sales growth and operational profit for 2024. However, its return on equity is projected to remain low at 12.7%.
Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets.
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:SBS XTRA:VH2 and XTRA:ZAL.
