Amidst a backdrop of slowing business activity and hopes for interest rate cuts in Europe, the Dutch stock market has shown resilience, buoyed by optimism surrounding global economic stimulus measures. In this environment, growth companies with high insider ownership on Euronext Amsterdam stand out as potentially strong performers due to their alignment of management interests with those of shareholders.
Top 5 Growth Companies With High Insider Ownership In The Netherlands
Overview: Basic-Fit N.V., with a market cap of €1.52 billion, operates fitness clubs through its subsidiaries.
Operations: Revenue is primarily generated from the Benelux region (€505.17 million) and France, Spain, and Germany (€626.41 million).
Insider Ownership: 12%
Basic-Fit shows significant growth potential with high insider ownership. Despite a slight decline in profit margins, the company reported a revenue increase to €584.76 million for H1 2024 and turned a net income of €4.18 million from a previous loss. Earnings are forecast to grow significantly at 77.7% annually, outpacing the Dutch market's average growth rate of 18.7%. However, interest payments are not well covered by earnings, indicating some financial risk.
Overview: CVC Capital Partners plc is a private equity and venture capital firm focusing on middle market secondaries, infrastructure and credit, management buyouts, leveraged buyouts, growth equity, mature companies, recapitalizations, strip sales and spinouts with a market cap of €21.56 billion.
Operations: CVC Capital Partners plc generates revenue primarily through private equity and venture capital activities, including middle market secondaries, infrastructure and credit investments, management and leveraged buyouts, growth equity, recapitalizations, strip sales, and spinouts.
Insider Ownership: 20.2%
CVC Capital Partners, a growth company with high insider ownership, is forecast to see substantial earnings growth at 32.6% annually and revenue growth of 13.6%, both outpacing the Dutch market averages. Trading at 25% below its estimated fair value, CVC remains active in M&A activities, including a potential bid increase for Deutsche Bahn's logistics unit and interest in acquiring The Telegraph. However, its high debt level poses some financial risk.
Overview: PostNL N.V. offers postal and logistics services to businesses and consumers in the Netherlands, Europe, and internationally, with a market cap of €640.19 million.
Operations: PostNL generates revenue from its Parcels segment (€2.28 billion) and Mail in The Netherlands segment (€1.35 billion).
Insider Ownership: 35.6%
PostNL, with significant insider ownership, is forecast to achieve annual earnings growth of 36.4%, outpacing the Dutch market's 18.7%. Despite trading at a substantial discount to its fair value, its revenue growth lags behind market expectations at 2.6% per year. Recent earnings reports show modest sales increases but a net loss for the first half of 2024. The company's dividend yield of 4.71% is not well covered by earnings and it carries high debt levels.
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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 ENXTAM:BFIT ENXTAM:CVC and ENXTAM:PNL.
