Stock Analysis

### 3 German Growth Companies With Up To 35% Insider Ownership

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In recent weeks, the German market has seen a modest uptick, with the DAX gaining 1.70% amid growing hopes for interest rate cuts by both the Federal Reserve and the European Central Bank. Despite some economic challenges, particularly in manufacturing, investor sentiment remains cautiously optimistic. When evaluating growth companies with high insider ownership, it's crucial to consider how these factors can align interests between shareholders and management—often leading to more stable and potentially rewarding investments.

Top 10 Growth Companies With High Insider Ownership In Germany

NameInsider OwnershipEarnings Growth
pferdewetten.de (XTRA:EMH)26.8%70.6%
Stemmer Imaging (XTRA:S9I)25.8%23.2%
Deutsche Beteiligungs (XTRA:DBAN)39.4%63.5%
Exasol (XTRA:EXL)25.3%117.1%
NAGA Group (XTRA:N4G)14.1%78.3%
Alelion Energy Systems (DB:2FZ)37.4%106.6%
Stratec (XTRA:SBS)30.9%20.1%
Beyond Frames Entertainment (DB:8WP)10.8%112.2%
Friedrich Vorwerk Group (XTRA:VH2)18%20.8%
elumeo (XTRA:ELB)25.8%120.2%

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.

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 are comprised of €157.97 million from the Credit Platform and €66.89 million from the Insurance Platform.

Insider Ownership: 35%

Hypoport SE, a growth company with high insider ownership in Germany, has shown significant earnings improvement, reporting a net income of €2.4 million for Q2 2024 compared to a net loss last year. The company's earnings are forecast to grow at 35% annually, outpacing the German market's 19.9%. Despite its highly volatile share price and lower forecasted return on equity (10.3%), Hypoport's revenue is expected to grow faster than the market average at 12.5% per year.

XTRA:HYQ Earnings and Revenue Growth as at Aug 2024

Verve Group (XTRA:M8G)

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 €553.48 million.

Operations: Verve Group's revenue segments include Demand Side Platforms (DSP) generating €51.53 million and Supply Side Platforms (SSP) contributing €318.35 million.

Insider Ownership: 25.1%

Verve Group, with significant insider ownership, has seen substantial insider buying in the past three months. The company recently raised its 2024 earnings guidance to €400 million - €420 million. Despite a highly volatile share price and recent shareholder dilution, Verve's earnings are forecast to grow significantly at 20.52% per year. However, its interest payments aren't well covered by earnings and large one-off items impact financial results. The recent appointment of Alex Stil as Chief Commercial Officer aims to enhance demand-side capabilities following the Jun Group acquisition.

XTRA:M8G Earnings and Revenue Growth as at Aug 2024

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 €6.32 billion.

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

Insider Ownership: 10.4%

Zalando, with high insider ownership, reported strong earnings for Q2 2024, with net income rising to €95.7 million from €56.6 million a year ago. Despite trading at 57.3% below its fair value estimate and having low forecasted Return on Equity (12.8%), its earnings are expected to grow significantly at 24.63% annually over the next three years, outpacing the German market's growth rate of 19.9%.

XTRA:ZAL Ownership Breakdown as at Aug 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.

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