Insider-Owned Growth Leaders On The German Exchange In July 2024

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As of July 2024, the German market has shown resilience with a notable 1.32% gain in the DAX index, reflecting a cautious optimism among investors despite broader European economic uncertainties and manufacturing slowdowns. In such an environment, growth companies with high insider ownership can be particularly compelling, as this alignment 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

Name

Insider Ownership

Earnings Growth

pferdewetten.de (XTRA:EMH)

26.8%

75.4%

Deutsche Beteiligungs (XTRA:DBAN)

39.1%

31.6%

YOC (XTRA:YOC)

24.8%

21.8%

NAGA Group (XTRA:N4G)

14.1%

79.2%

Exasol (XTRA:EXL)

25.3%

105.4%

Alelion Energy Systems (DB:2FZ)

37.4%

106.6%

Stratec (XTRA:SBS)

30.9%

21.9%

elumeo (XTRA:ELB)

25.8%

99.1%

Redcare Pharmacy (XTRA:RDC)

17.7%

47.4%

Friedrich Vorwerk Group (XTRA:VH2)

18%

30.4%

Click here to see the full list of 17 stocks from our Fast Growing German Companies With High Insider Ownership screener.

We're going to check out a few of the best picks from our screener tool.

Hypoport

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Hypoport SE is a technology-based financial service provider in Germany, with a market capitalization of approximately €2.06 billion.

Operations: The company generates revenue primarily through its Credit Platform and Insurance Platform, which brought in €155.60 million and €66.29 million respectively.

Insider Ownership: 35.1%

Earnings Growth Forecast: 31.9% p.a.

Hypoport, a German growth company with high insider ownership, reported a substantial increase in Q1 earnings for 2024, with sales rising to €107.47 million from €93.72 million year-over-year and net income increasing to €3.04 million from €0.503 million. Despite these gains, its revenue growth forecast of 13.4% per year trails the ambitious 20% benchmark but outpaces the broader German market's 5.5%. Earnings are expected to grow robustly at an annual rate of 31.89%, significantly ahead of the market forecast of 18.7%. However, concerns linger due to large one-off items affecting quality and a low projected Return on Equity (9.1%) in three years' time.

XTRA:HYQ Earnings and Revenue Growth as at Jul 2024
XTRA:HYQ Earnings and Revenue Growth as at Jul 2024

Redcare Pharmacy

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Redcare Pharmacy NV is an online pharmacy operating across the Netherlands, Germany, Italy, Belgium, Switzerland, Austria, and France with a market capitalization of approximately €2.72 billion.

Operations: The company generates revenue primarily through its DACH region (€1.62 billion) and other international operations (€0.37 billion).

Insider Ownership: 17.7%

Earnings Growth Forecast: 47.4% p.a.

Redcare Pharmacy, a German growth company with high insider ownership, is expected to become profitable within the next three years, outpacing average market growth. Despite trading at 73.1% below its estimated fair value and experiencing shareholder dilution over the past year, its revenue is forecasted to grow by 17.1% annually—faster than Germany's average of 5.5%. However, challenges include a highly volatile share price and a low projected return on equity of 7.5% in three years. Recent earnings showed an improvement with Q1 sales reaching €560.22 million up from €372.05 million year-over-year, reducing net losses to €7.81 million from €10.22 million.

XTRA:RDC Ownership Breakdown as at Jul 2024
XTRA:RDC Ownership Breakdown as at Jul 2024

Friedrich Vorwerk Group

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Friedrich Vorwerk Group SE specializes in offering solutions for the transformation and transportation of energy across Germany and Europe, with a market capitalization of approximately €0.38 billion.

Operations: The company generates revenue through various 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, a German growth company with high insider ownership, reported increased Q1 earnings with sales rising to €76.71 million and net income improving to €1.56 million. The company's earnings are expected to grow by 30.45% annually over the next three years, outpacing the German market's 18.7%. Despite this robust growth forecast, its revenue increase is more modest at 8.3% annually and its projected return on equity remains low at 11%.

XTRA:VH2 Earnings and Revenue Growth as at Jul 2024
XTRA:VH2 Earnings and Revenue Growth as at Jul 2024

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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:HYQ XTRA:RDCXTRA:VH2 and

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