3 German Growth Companies With High Insider Ownership Growing Earnings Up To 41%

Germany's DAX recently rose by 2.17%, buoyed by an interest rate cut from the European Central Bank amid signs of weakening economic growth and slowing inflation in the eurozone. In this environment, identifying growth companies with high insider ownership can provide investors with confidence, as these firms often exhibit strong alignment between management and shareholder interests. In this article, we will explore three German growth companies that not only demonstrate robust earnings growth but also boast significant insider ownership, which can be a key indicator of potential long-term success.

Top 10 Growth Companies With High Insider Ownership In Germany

Name	Insider Ownership	Earnings Growth
pferdewetten.de (XTRA:EMH)	26.8%	70.6%
Stemmer Imaging (XTRA:S9I)	25.2%	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%
R. STAHL (XTRA:RSL2)	37.9%	59.3%
Beyond Frames Entertainment (DB:8WP)	10.8%	112.2%
Redcare Pharmacy (XTRA:RDC)	17.7%	52.1%
Friedrich Vorwerk Group (XTRA:VH2)	18%	24.6%

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

Below we spotlight a couple of our favorites from our exclusive screener.

adidas (XTRA:ADS)

Simply Wall St Growth Rating: ★★★★★☆

Overview: adidas AG, along with its subsidiaries, designs, develops, produces, and markets athletic and sports lifestyle products across various regions globally with a market cap of €39.16 billion.

Operations: The company generates revenue from various regions, including €3.26 billion from Greater China, €2.39 billion from Latin America, and €5.07 billion from North America.

Insider Ownership: 16.6%

Earnings Growth Forecast: 41.8% p.a.

adidas AG has demonstrated robust growth, with recent earnings showing significant improvements: Q2 2024 sales reached €5.82 billion and net income rose to €190 million. The company raised its full-year guidance, anticipating high-single-digit revenue growth and an operating profit around €1 billion. Insider ownership remains strong, aligning management interests with shareholders. Additionally, adidas's earnings are forecast to grow at 41.8% per year, outpacing the German market's average of 20%.

• Take a closer look at adidas' potential here in our earnings growth report.
• According our valuation report, there's an indication that adidas' share price might be on the cheaper side.

Hypoport (XTRA:HYQ)

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 €1.77 billion.

Operations: The company's revenue segments include €157.97 million from the Credit Platform and €66.89 million from the Insurance Platform.

Insider Ownership: 35%

Earnings Growth Forecast: 35% p.a.

Hypoport SE has shown promising growth, with Q2 2024 sales rising to €110.62 million from €85.29 million a year ago and net income improving to €2.4 million from a net loss of €2.61 million. The company's earnings are forecast to grow at 35% per year, significantly outpacing the German market's average of 20%. Despite high volatility in its share price, Hypoport's strong insider ownership aligns management interests with shareholders.

• Unlock comprehensive insights into our analysis of Hypoport stock in this growth report.
• The valuation report we've compiled suggests that Hypoport's current price could be inflated.

Zalando (XTRA:ZAL)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Zalando SE operates an online platform for fashion and lifestyle products, with a market cap of approximately €6.16 billion.

Operations: The company generates revenue from its online platform for fashion and lifestyle products, with segment adjustments amounting to €10.49 billion.

Insider Ownership: 10.4%

Earnings Growth Forecast: 25.1% p.a.

Zalando's earnings are forecast to grow 25.12% annually, surpassing the German market's average of 20%. Recent Q2 2024 results showed sales of €2.64 billion and net income of €95.7 million, up from €56.6 million a year ago. Despite trading at 58.2% below its estimated fair value, the company's return on equity is expected to be low at 12.8%. CFO Dr. Sandra Dembeck will leave in early 2025 for new opportunities.

• Get an in-depth perspective on Zalando's performance by reading our analyst estimates report here.
• Our comprehensive valuation report raises the possibility that Zalando is priced higher than what may be justified by its financials.

Next Steps

• Dive into all 22 of the Fast Growing German Companies With High Insider Ownership we have identified here.
• Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
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Ready For A Different Approach?

• 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.

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