As of June 2024, the German market continues to show resilience, with the DAX index experiencing modest gains amid broader European economic adjustments and rate cuts by the ECB. This backdrop creates a fertile environment for examining growth companies, particularly those with high insider ownership which often signals strong confidence in the company's future from those who know it best.
Top 10 Growth Companies With High Insider Ownership In Germany
Overview: Brockhaus Technologies AG operates as a private equity firm and has a market capitalization of approximately €305.07 million.
Operations: Brockhaus Technologies AG generates revenue primarily through its Security Technologies and Financial Technologies segments, totaling €39.43 million and €153.43 million respectively.
Insider Ownership: 26.6%
Earnings Growth Forecast: 74.2% p.a.
Brockhaus Technologies is trading at a significant discount to its estimated fair value, suggesting potential for price appreciation. The company's revenue growth is robust, forecasted at 17.8% annually, outpacing the German market average of 5.1%. While currently unprofitable, Brockhaus is expected to achieve profitability within three years with earnings projected to grow significantly. Recent financials show a net loss increase and a substantial share buyback completion, indicating active management involvement and confidence in future performance.
Overview: Stratec SE, operating globally, specializes in designing and manufacturing automation and instrumentation solutions for in-vitro diagnostics and life sciences, with a market capitalization of approximately €575.58 million.
Operations: The company generates its revenue by providing automation and instrumentation solutions, primarily for in-vitro diagnostics and life sciences sectors across Germany, the European Union, and other global markets.
Insider Ownership: 30.9%
Earnings Growth Forecast: 22% p.a.
Stratec SE, a German growth company with high insider ownership, has shown mixed financial performance recently. In Q1 2024, sales and net income declined from the previous year to €50.87 million and €0.447 million respectively. Despite this downturn, Stratec's earnings are expected to grow by 22% annually over the next three years, outpacing the broader German market's forecast of 18.6%. The company also maintains a consistent dividend policy despite a recent reduction, reflecting stable shareholder returns amidst challenging times.
Overview: Friedrich Vorwerk Group SE specializes in solutions for the transformation and transportation of energy within Germany and Europe, with a market capitalization of approximately €0.37 billion.
Operations: The company generates revenue through 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%
Earnings Growth Forecast: 30.4% p.a.
Friedrich Vorwerk Group SE, a German company with high insider ownership, reported an increase in Q1 2024 earnings with sales rising to €76.71 million and net income improving to €1.56 million from the previous year. Despite a modest annual revenue growth forecast of 7.9%, which surpasses the German market's expectation of 5.1%, its projected earnings growth is significant at 30.45% annually over the next three years, outperforming the market forecast of 18.6%. However, its expected Return on Equity remains low at around 11%.
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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:BKHT XTRA:SBS and XTRA:VH2.
