3 German Growth Stocks With High Insider Ownership Growing Earnings At 41%

As the German market navigates through a period of cautious investor sentiment due to escalating Middle East tensions and a dip in major indices like the DAX, attention turns to companies that demonstrate resilience and potential for growth. In this environment, stocks with high insider ownership can be appealing as they often indicate strong alignment between company leadership and shareholder interests, particularly when these companies are also showing significant earnings growth.

Top 10 Growth Companies With High Insider Ownership In Germany

Name	Insider Ownership	Earnings Growth
Stemmer Imaging (XTRA:S9I)	25%	23.2%
Exasol (XTRA:EXL)	25.3%	117.1%
Deutsche Beteiligungs (XTRA:DBAN)	39.5%	54.1%
adidas (XTRA:ADS)	16.6%	41.8%
pferdewetten.de (XTRA:EMH)	20.6%	97.9%
Alelion Energy Systems (DB:2FZ)	37.4%	106.6%
Beyond Frames Entertainment (DB:8WP)	10.8%	112.2%
R. STAHL (XTRA:RSL2)	37.9%	59.3%
Friedrich Vorwerk Group (XTRA:VH2)	18.8%	24.6%
Redcare Pharmacy (XTRA:RDC)	17.4%	55.3%

Click here to see the full list of 19 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, is engaged in the design, development, production, and marketing of athletic and sports lifestyle products across Europe, the Middle East, Africa, North America, Greater China, the Asia-Pacific region, and Latin America with a market cap of approximately €41.96 billion.

Operations: The company's revenue is segmented as follows: Greater China contributes €3.26 billion, Latin America provides €2.39 billion, and North America accounts for €5.07 billion.

Insider Ownership: 16.6%

Earnings Growth Forecast: 41.8% p.a.

adidas AG has demonstrated strong financial performance, with second-quarter sales rising to €5.82 billion and net income reaching €190 million. The company has revised its 2024 guidance upward, anticipating a high-single-digit increase in currency-neutral revenues and an operating profit of around €1 billion. Despite slower revenue growth forecasts at 8.3% annually, adidas's earnings are expected to grow significantly at 41.8% per year, outpacing the German market average of 20.2%.

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

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 €1.97 billion.

Operations: The company's revenue is primarily derived from its Credit Platform (€157.97 million), Insurance Platform (€66.89 million), and Segment Adjustment (€175.87 million).

Insider Ownership: 33.5%

Earnings Growth Forecast: 34% p.a.

Hypoport SE's growth trajectory is marked by its forecasted revenue increase of 12.5% annually, surpassing the German market average of 5.4%. The company's earnings are expected to grow significantly at 34% per year, outpacing the market's 20.1%. Despite high volatility in share price and a low projected return on equity of 9.7%, Hypoport recently became profitable and was added to Germany's MDAX Index, reflecting its evolving market position.

• Navigate through the intricacies of Hypoport with our comprehensive analyst estimates report here.
• Our valuation report here indicates Hypoport may be overvalued.

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 €7.47 billion.

Operations: The company generates its revenue through an online platform specializing in fashion and lifestyle products, with a segment adjustment of €10.49 billion.

Insider Ownership: 10.4%

Earnings Growth Forecast: 24.8% p.a.

Zalando's earnings are expected to grow significantly at 24.8% annually, outpacing the German market's 20.1%. Despite a low forecasted return on equity of 12.7%, the company remains undervalued, trading at over half below its estimated fair value. Recent earnings reveal robust growth with net income increasing to €95.7 million in Q2 from €56.6 million a year ago, amid executive changes as CFO Sandra Dembeck plans her departure by February 2025.

• Click to explore a detailed breakdown of our findings in Zalando's earnings growth report.
• Insights from our recent valuation report point to the potential overvaluation of Zalando shares in the market.

Seize The Opportunity

• Get an in-depth perspective on all 19 Fast Growing German Companies With High Insider Ownership by using our screener here.
• Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com