Amidst renewed concerns about global economic growth, the German market has experienced a notable decline, with the DAX index falling by 3.20% recently. Despite this downturn, growth companies with high insider ownership often present compelling opportunities due to their potential for strong alignment between management and shareholder interests. In this environment, identifying stocks that combine robust growth prospects with significant insider ownership can be particularly advantageous.
Top 10 Growth Companies With High Insider Ownership In Germany
Overview: Brockhaus Technologies AG is a private equity firm with a market cap of €294.62 million.
Operations: Brockhaus Technologies generates revenue primarily from its Security Technologies segment (€37.03 million) and Financial Technologies segment (€174.59 million).
Insider Ownership: 26.6%
Brockhaus Technologies, a growth company with high insider ownership in Germany, is forecast to achieve 16.8% annual revenue growth and become profitable within three years. Despite a low expected return on equity of 5.3%, the stock trades at 79.3% below its estimated fair value. Recent earnings guidance confirmed revenue projections between €220 million and €240 million for 2024, with medium-term outlooks remaining strong for 2025 at €290 million to €320 million.
Overview: Redcare Pharmacy NV operates an online pharmacy business across the Netherlands, Germany, Italy, Belgium, Switzerland, Austria, and France with a market cap of €2.49 billion.
Operations: The company's revenue segments are divided into DACH, generating €1.74 billion, and International, contributing €391 million.
Insider Ownership: 17.7%
Redcare Pharmacy is forecast to achieve 17.1% annual revenue growth, outpacing the German market's 5.4%. Despite a volatile share price and low expected return on equity of 13.4%, it trades at 69.6% below its estimated fair value. Insiders have been net buyers over the past three months, indicating confidence in its prospects. Recent earnings showed sales of €1.12 billion for H1 2024, up from €791.94 million a year ago, with reduced net losses from €14.78 million to €12.07 million.
Overview: Friedrich Vorwerk Group SE offers solutions for the transformation and transportation of energy across Germany and Europe, with a market cap of €445 million.
Operations: The company's revenue segments include €95.30 million from Electricity, €160.89 million from Natural Gas, €28.38 million from Clean Hydrogen, and €117.28 million from Adjacent Opportunities.
Insider Ownership: 18%
Friedrich Vorwerk Group SE reported strong Q2 2024 results, with sales increasing to €117.41 million from €92.55 million and net income rising to €7.96 million from €2.38 million year-over-year. The company updated its fiscal 2024 revenue guidance to exceed €410 million, reflecting at least 10% growth over 2023. Earnings are forecasted to grow significantly at 24.63% annually over the next three years, outpacing both its revenue growth of 9.7% and the broader German market's earnings growth rate of 19.8%.
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:RDC and XTRA:VH2.
