Hypoport And Two More German Exchange Growth Companies With High Insider Ownership

Amid a backdrop of fluctuating global markets, Germany's DAX index recently showcased a robust gain of 1.48%, reflecting a positive investor sentiment influenced by lower-than-expected U.S. inflation data. In such an environment, growth companies with high insider ownership in Germany present an intriguing focus, as substantial insider stakes often align management’s interests with those of shareholders, potentially enhancing trust and long-term value in the current economic climate.

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%
Your Family Entertainment (DB:RTV)	17.5%	116.8%
Friedrich Vorwerk Group (XTRA:VH2)	18%	30.4%

Click here to see the full list of 18 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 (XTRA:HYQ)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Hypoport SE is a technology-based financial service provider in Germany, with a market capitalization of approximately €2.07 billion.

Operations: The company generates revenue through its Credit Platform and Insurance Platform segments, with earnings of €155.60 million and €66.29 million respectively.

Insider Ownership: 35.1%

Earnings Growth Forecast: 31.9% p.a.

Hypoport SE has demonstrated robust growth with a 240.5% increase in earnings over the past year, and forecasts suggest this trend may continue, with expected annual earnings growth of 31.9% outpacing the German market projection of 18.9%. Revenue is also set to grow at a rate of 13.4% annually, again faster than the market's 5.2%. However, its Return on Equity is projected to be low at 9.1%, indicating potential efficiency issues in capital utilization despite strong top-line growth metrics and substantial recent improvements in net income as per Q1 results for 2024.

• Take a closer look at Hypoport's potential here in our earnings growth report.
• The analysis detailed in our Hypoport valuation report hints at an inflated share price compared to its estimated value.

Redcare Pharmacy (XTRA:RDC)

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 €2.81 billion.

Operations: The company generates revenue primarily from two segments: DACH (€1.62 billion) and International (€0.37 billion).

Insider Ownership: 17.7%

Earnings Growth Forecast: 47.4% p.a.

Redcare Pharmacy NV, with significant insider ownership, shows promising growth potential in Germany. Its Q1 2024 sales increased to €560.22 million from €372.05 million year-over-year, and its net loss narrowed to €7.81 million from €10.22 million. Despite a highly volatile share price recently, Redcare's revenue is expected to grow by 17.1% annually, outpacing the German market's 5.2%. The company is also trading at a substantial discount of 72.2% below its estimated fair value and forecasts suggest it will turn profitable within three years with an anticipated earnings growth of 47.38% per year; however, shareholder dilution occurred over the past year and its projected Return on Equity remains low at 7.5%.

• Delve into the full analysis future growth report here for a deeper understanding of Redcare Pharmacy.
• Upon reviewing our latest valuation report, Redcare Pharmacy's share price might be too optimistic.

Zalando (XTRA:ZAL)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Zalando SE is an online retailer specializing in fashion and lifestyle products, with a market capitalization of approximately €6.26 billion.

Operations: The company's revenue is primarily generated from its online retail platform, totaling approximately €10.40 billion.

Insider Ownership: 10.4%

Earnings Growth Forecast: 26.4% p.a.

Zalando SE, a growth-oriented company with substantial insider ownership in Germany, is trading at 51.5% below its estimated fair value. While its revenue growth of 5.4% per year slightly outpaces the German market average of 5.2%, this rate is not considered high as it falls below 20%. However, Zalando's earnings are expected to surge by an impressive 26.42% annually over the next three years, significantly outperforming the broader market's forecast of 18.9%. Despite these positives, Zalando’s projected Return on Equity in three years is relatively low at only 12.6%.

• Get an in-depth perspective on Zalando's performance by reading our analyst estimates report here.
• Our valuation report here indicates Zalando may be overvalued.

Make It Happen

• Delve into our full catalog of 18 Fast Growing German Companies With High Insider Ownership here.
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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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