editorial-team@simplywallst.com (Simply Wall St)
·4-min read
The German market has faced significant volatility recently, with the DAX index tumbling 4.11% amid global economic concerns and weak U.S. data impacting investor sentiment. Despite these challenges, opportunities remain for discerning investors, particularly in growth companies with high insider ownership—a factor often indicative of strong confidence in future performance. In this context, identifying stocks that exhibit robust earnings growth and substantial insider ownership can be a strategic move. Here are three German growth stocks that stand out for their impressive earnings potential and high levels of insider investment.
Top 10 Growth Companies With High Insider Ownership In Germany
Name | Insider Ownership | Earnings Growth |
pferdewetten.de (XTRA:EMH) | 26.8% | 75.4% |
YOC (XTRA:YOC) | 24.8% | 21.8% |
Deutsche Beteiligungs (XTRA:DBAN) | 39.3% | 34.7% |
Exasol (XTRA:EXL) | 25.3% | 105.4% |
NAGA Group (XTRA:N4G) | 14.1% | 78.3% |
Alelion Energy Systems (DB:2FZ) | 37.4% | 106.6% |
Stratec (XTRA:SBS) | 30.9% | 21.9% |
Redcare Pharmacy (XTRA:RDC) | 17.7% | 50.2% |
Your Family Entertainment (DB:RTV) | 17.5% | 116.8% |
Friedrich Vorwerk Group (XTRA:VH2) | 18% | 30.4% |
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Brockhaus Technologies
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Brockhaus Technologies AG is a private equity firm with a market cap of €307.16 million.
Operations: Brockhaus Technologies generates revenue primarily from its Security Technologies segment (€39.43 million) and Financial Technologies segment (€153.43 million).
Insider Ownership: 26.6%
Earnings Growth Forecast: 76.3% p.a.
Brockhaus Technologies reported Q1 2024 earnings with sales of €39.85 million, up from €33.63 million a year ago, but posted a net loss of €1.38 million. Despite trading at 79.3% below its estimated fair value and forecasted to grow revenue at 17.8% per year, the company’s return on equity is expected to remain low at 8.1%. However, it is projected to achieve profitability within three years with earnings growth of 76.28% annually, outpacing the broader German market.
Verve Group
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Verve Group SE operates a software platform for the automated buying and selling of digital advertising space in North America and Europe, with a market cap of €466.83 million.
Operations: Revenue segments include Demand Side Platforms (DSP) at €51.53 million and Supply Side Platforms (SSP) at €318.35 million.
Insider Ownership: 25.1%
Earnings Growth Forecast: 20.6% p.a.
Verve Group, recently renamed from MGI - Media and Games Invest SE, is forecasted to grow earnings by 20.6% annually and revenue by 12.4% per year, surpassing the German market's growth rate. Despite a highly volatile share price and recent shareholder dilution, insider buying has been substantial over the past three months. The company trades at a significant discount to its estimated fair value and has reduced financing costs through strategic debt refinancing following its acquisition of Jun Group.
Redcare Pharmacy
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Redcare Pharmacy NV operates an online pharmacy business across the Netherlands, Germany, Italy, Belgium, Switzerland, Austria, and France with a market cap of €2.91 billion.
Operations: The company's revenue segments include €1.74 billion from the DACH region and €391 million from International markets.
Insider Ownership: 17.7%
Earnings Growth Forecast: 50.2% p.a.
Redcare Pharmacy reported half-year sales of €1.12 billion, up from €791.94 million a year ago, with a reduced net loss of €12.07 million compared to €14.78 million previously. Revenue is forecast to grow 17.1% annually, faster than the German market's 5.3%, and earnings are expected to increase by 50.21% per year, becoming profitable within three years despite recent shareholder dilution and share price volatility; it trades at a significant discount to its estimated fair value.
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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:M8G and XTRA:RDC.
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