Insider-Owned German Growth Companies To Watch In May 2024

As of May 2024, the German market has shown a slight downturn with the DAX index falling by 0.36%, reflecting a cautious stance from investors amid mixed signals from central banks across Europe. Despite this, certain sectors and companies continue to attract attention, particularly those with high insider ownership which can signal strong confidence in the company’s growth prospects from those who know it best.

Top 10 Growth Companies With High Insider Ownership In Germany

Name	Insider Ownership	Earnings Growth
pferdewetten.de (XTRA:EMH)	26.8%	73%
Deutsche Beteiligungs (XTRA:DBAN)	35.3%	31.4%
YOC (XTRA:YOC)	24.8%	21.8%
NAGA Group (XTRA:N4G)	14.1%	58.1%
Exasol (XTRA:EXL)	25.3%	107.4%
Beyond Frames Entertainment (DB:8WP)	10.9%	81.9%
Alelion Energy Systems (DB:2FZ)	37.4%	106.6%
elumeo (XTRA:ELB)	25.8%	99.1%
Friedrich Vorwerk Group (XTRA:VH2)	18%	29.9%
Redcare Pharmacy (XTRA:RDC)	18.3%	47.4%

Click here to see the full list of 17 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 €2.13 billion.

Operations: The company operates primarily as a technology-driven financial service provider in Germany.

Insider Ownership: 35.1%

Earnings Growth Forecast: 35.9% p.a.

Hypoport SE, a German growth company with high insider ownership, has demonstrated significant financial progress. The company's revenue is expected to grow by 12.6% annually, outpacing the broader German market's 5.1%. Although this growth rate is below the high-growth benchmark of 20%, Hypoport's earnings have surged by an impressive 240.5% over the past year and are projected to expand by 35.85% annually over the next three years. However, one-off items have impacted its financial results, and its Return on Equity is forecasted to be relatively low at 9.1% in three years' time. Recent earnings reports show strong quarterly performance with sales rising from €93.72 million to €107.47 million and net income increasing significantly from €0.503 million to €3.04 million year-over-year.

• Click to explore a detailed breakdown of our findings in Hypoport's earnings growth report.
• Upon reviewing our latest valuation report, Hypoport's share price might be too optimistic.

Stratec (XTRA:SBS)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Stratec SE, operating primarily in Germany and internationally, specializes in designing and manufacturing automation and instrumentation solutions for in-vitro diagnostics and life sciences, with a market capitalization of approximately €537.90 million.

Operations: The company generates its revenue by designing and manufacturing automation and instrumentation solutions for in-vitro diagnostics and life sciences across Germany, the European Union, and other international markets.

Insider Ownership: 30.9%

Earnings Growth Forecast: 22% p.a.

Stratec SE, a German company with high insider ownership, is trading at 45.2% below its estimated fair value, suggesting potential undervaluation. The firm's earnings are expected to grow by 22% annually over the next three years, outperforming the German market forecast of 18.7%. However, recent financials indicate a downturn; Q1 sales dropped to €50.87 million from €60.48 million year-over-year and net income fell significantly to €0.447 million from €1.37 million. This financial contraction raises concerns despite favorable growth forecasts and insider confidence.

• Click here and access our complete growth analysis report to understand the dynamics of Stratec.
• Our comprehensive valuation report raises the possibility that Stratec is priced higher than what may be justified by its financials.

Friedrich Vorwerk Group (XTRA:VH2)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Friedrich Vorwerk Group SE specializes in providing solutions for the transformation and transportation of energy across Germany and Europe, with a market capitalization of approximately €324.8 million.

Operations: The company operates primarily in the energy transformation and transportation sectors across Germany and Europe.

Insider Ownership: 18%

Earnings Growth Forecast: 29.9% p.a.

Friedrich Vorwerk Group SE, a German growth company with high insider ownership, is currently undervalued by 12.7%, trading below its fair value. It's poised for robust earnings growth at an annual rate of 29.9% over the next three years, surpassing the German market's forecast of 18.7%. Although revenue growth is moderate at 6.7% annually, it still outpaces the market expectation of 5.1%. Recent financials show significant improvement with Q1 net income doubling year-over-year to €1.56 million from €0.748 million.

• Unlock comprehensive insights into our analysis of Friedrich Vorwerk Group stock in this growth report.
• Our expertly prepared valuation report Friedrich Vorwerk Group implies its share price may be too high.

Summing It All Up

• Delve into our full catalog of 17 Fast Growing German Companies With High Insider Ownership here.
• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
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Searching for a Fresh Perspective?

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• 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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