3 German Growth Companies With Up To 35% Insider Ownership

In recent weeks, Germany's DAX index has shown a notable rise of 2.17%, buoyed by the European Central Bank's decision to cut interest rates amid signs of weakening economic growth and slowing inflation in the eurozone. Against this backdrop, identifying growth companies with substantial insider ownership can provide investors with unique insights into potential long-term value. When evaluating stocks under current market conditions, it's important to consider companies where insiders have significant stakes, as this often indicates confidence in the company's future prospects and alignment with shareholder interests.

Top 10 Growth Companies With High Insider Ownership In Germany

Name	Insider Ownership	Earnings Growth
pferdewetten.de (XTRA:EMH)	26.8%	75.4%
Stemmer Imaging (XTRA:S9I)	25.1%	23.2%
Deutsche Beteiligungs (XTRA:DBAN)	39.5%	54.1%
Exasol (XTRA:EXL)	25.3%	117.1%
adidas (XTRA:ADS)	16.6%	41.8%
Alelion Energy Systems (DB:2FZ)	37.4%	106.6%
Stratec (XTRA:SBS)	30.9%	20%
Beyond Frames Entertainment (DB:8WP)	10.8%	112.2%
R. STAHL (XTRA:RSL2)	37.9%	59.3%
Redcare Pharmacy (XTRA:RDC)	17.4%	51.8%

Click here to see the full list of 22 stocks from our Fast Growing German Companies With High Insider Ownership screener.

Let's dive into some prime choices out of the screener.

adidas

Simply Wall St Growth Rating: ★★★★★☆

Overview: adidas AG, with a market cap of €40.55 billion, designs, develops, produces, and markets athletic and sports lifestyle products across Europe, the Middle East, Africa, North America, Greater China, the Asia-Pacific region, and Latin America.

Operations: Revenue segments for the company are as follows: €3.26 billion from Greater China, €2.39 billion from Latin America, and €5.07 billion from North America, with a segment adjustment of €11.29 billion.

Insider Ownership: 16.6%

adidas AG has shown strong financial performance, with second-quarter sales rising to €5.82 billion and net income increasing to €190 million. The company revised its full-year guidance upwards, expecting operating profit around €1 billion. Earnings are forecasted to grow significantly at 41.8% per year, outpacing the German market's 19.9%. Despite trading at a discount of 17.8% below fair value estimates, adidas' revenue growth is expected to be moderate at 8.3% annually.

• Click here to discover the nuances of adidas with our detailed analytical future growth report.

• Our expertly prepared valuation report adidas implies its share price may be too high.

XTRA:ADS Earnings and Revenue Growth as at Sep 2024

Hypoport

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Hypoport SE develops and markets technology platforms for the financial services, property, and insurance industries in Germany, with a market cap of €1.84 billion.

Operations: The company's revenue segments include €157.97 million from its Credit Platform and €66.89 million from its Insurance Platform, with a Segment Adjustment of €175.87 million.

Insider Ownership: 35%

Hypoport SE's recent earnings report showed substantial growth, with second-quarter sales reaching €110.62 million and net income at €2.4 million, reversing a net loss from the previous year. For the first half of 2024, sales were €218.09 million with a net income of €5.44 million. The company's earnings are forecasted to grow significantly at 35% per year, outpacing both its revenue growth and the broader German market's average profit growth rate of 19.9%.

• Click here and access our complete growth analysis report to understand the dynamics of Hypoport.

• Our comprehensive valuation report raises the possibility that Hypoport is priced higher than what may be justified by its financials.

XTRA:HYQ Ownership Breakdown as at Sep 2024

Zalando

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Zalando SE operates an online platform for fashion and lifestyle products, with a market cap of €6.84 billion.

Operations: Zalando SE's revenue segments include a Reconciliation of -€275 million and a Segment Adjustment of €10.49 billion.

Insider Ownership: 10.4%

Zalando SE's second-quarter 2024 earnings report showed sales of €2.64 billion, up from €2.56 billion a year ago, and net income of €95.7 million compared to €56.6 million previously. Despite CFO Dr. Sandra Dembeck's upcoming departure, the company remains strong with forecasted annual earnings growth of 25.12%, outpacing the German market average of 19.9%. However, its revenue growth rate is expected to be moderate at 5.5% per year and return on equity is projected to be low at 12.8%.

• Click to explore a detailed breakdown of our findings in Zalando's earnings growth report.

• Our valuation report here indicates Zalando may be overvalued.

XTRA:ZAL Earnings and Revenue Growth as at Sep 2024

Summing It All Up

• Explore the 22 names from our Fast Growing German Companies With High Insider Ownership screener here.

• 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.

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Ready To Venture Into Other Investment Styles?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.

• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.

• Find companies with promising cash flow potential yet trading below their fair value.

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:ADS XTRA:HYQ and XTRA:ZAL.

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