Stock Analysis

Hypoport Leads Trio Of German Growth Stocks With High Insider Ownership

XTRA:HYQ
Source: Shutterstock

As global markets respond to fluctuating economic indicators, Germany's DAX index has shown resilience, gaining 1.48% recently, reflecting investor optimism in European equities. In such a climate, growth companies with high insider ownership in Germany could offer interesting opportunities as these insiders often have a deep commitment to their companies' long-term success. High insider ownership can be a sign of confidence in the company’s future prospects, which is particularly reassuring in the current environment where economic signals are mixed. This characteristic might suggest stability and a potential for sustained growth amidst market uncertainties.

Top 10 Growth Companies With High Insider Ownership In Germany

NameInsider OwnershipEarnings Growth
pferdewetten.de (XTRA:EMH)26.8%75.4%
Deutsche Beteiligungs (XTRA:DBAN)39.1%34.7%
YOC (XTRA:YOC)24.8%21.8%
NAGA Group (XTRA:N4G)14.1%74.7%
Exasol (XTRA:EXL)25.3%105.4%
Alelion Energy Systems (DB:2FZ)37.4%106.6%
elumeo (XTRA:ELB)25.8%99.1%
Redcare Pharmacy (XTRA:RDC)17.7%47.4%
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.

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

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 €2.15 billion.

Operations: Hypoport's revenue is derived primarily from its Credit Platform and Insurance Platform, generating €155.60 million and €66.29 million respectively.

Insider Ownership: 35.1%

Hypoport SE, a growth-oriented company with high insider ownership in Germany, demonstrated robust performance with Q1 sales increasing to €107.47 million and net income rising to €3.04 million. Despite a low forecasted return on equity of 9.2% in three years, the company's revenue and earnings are expected to outpace the German market with annual growth rates of 13.4% and 31.9%, respectively. Recent significant earnings growth highlights its potential despite some concerns over the quality of earnings impacted by one-off items.

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

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 approximately €2.83 billion.

Operations: The company generates revenue primarily through its DACH segment at €1.62 billion and its International operations contributing €369.34 million.

Insider Ownership: 17.7%

Redcare Pharmacy, amidst a volatile market, trades at €72% below its estimated fair value and is poised to become profitable within three years, outpacing average market growth. Despite a forecasted annual revenue increase of 17.1%, which surpasses Germany's 5.2% average, its projected return on equity remains low at 7.5%. Recent financials show a reduction in net loss to €7.81 million from €10.22 million year-over-year on revenues of €560.22 million, indicating progress yet highlighting challenges ahead.

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

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 €6.23 billion.

Operations: The company's revenue segments total approximately €10.40 billion, derived primarily from its online platform offering fashion and lifestyle products.

Insider Ownership: 10.4%

Zalando SE, trading at 51.9% below its estimated fair value, has shown robust earnings growth of 184.3% over the past year with future earnings expected to rise by 26.44% annually. Despite its forecasted revenue growth (5.4% per year) slightly outpacing the German market average (5.2%), it remains significantly below the high-growth benchmark of 20%. Recent presentations across Europe reflect ongoing strategic efforts to bolster market position and profitability in a competitive digital landscape.

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

Turning Ideas Into Actions

Searching for a Fresh Perspective?

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.

Valuation is complex, but we're helping make it simple.

Find out whether Hypoport is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

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