Insider-Owned German Growth Stocks To Watch In July 2024

As global markets navigate through a landscape marked by rising trade tensions and shifting investment trends, the German market has experienced notable fluctuations, with the DAX index reflecting a downturn amid broader European economic uncertainties. In such an environment, identifying growth companies with high insider ownership in Germany could offer investors potential resilience and alignment of interests between shareholders and management.

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)	39.2%	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%
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.

Let's take a closer look at a couple of our picks from the screened companies.

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 €2.16 billion.

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

Insider Ownership: 35.1%

Hypoport SE, a growth company in Germany with high insider ownership, has demonstrated robust financial performance. Over the past year, its earnings surged by 240.5%, with forecasts indicating continued strong growth at an annual rate of 31.89%. Despite this, its revenue growth at 13.4% per year is slower compared to other high-growth benchmarks. The company's return on equity is expected to remain low at 9.2% in three years' time, reflecting some challenges in efficiency or profitability scaling despite substantial earnings increases and a positive outlook from recent significant events like improved quarterly results and active participation in major conferences.

• Take a closer look at Hypoport's potential here in our earnings growth report.
• Upon reviewing our latest valuation report, Hypoport's share price might be too optimistic.

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 €2.82 billion.

Operations: The company generates €1.62 billion from its DACH region operations and €0.37 billion internationally.

Insider Ownership: 17.7%

Redcare Pharmacy NV, a growth-focused company in Germany with high insider ownership, reported an increase in sales to €560.22 million this quarter from €372.05 million last year, reducing its net loss to €7.81 million from €10.22 million. Despite trading at 72.1% below its estimated fair value and experiencing high share price volatility recently, Redcare is expected to outpace the German market with a revenue growth forecast of 17.1% per year and become profitable within three years. However, shareholder dilution over the past year and a low forecasted return on equity of 7.5% highlight potential concerns.

• Delve into the full analysis future growth report here for a deeper understanding of Redcare Pharmacy.
• Our valuation report here indicates Redcare Pharmacy may be overvalued.

Friedrich Vorwerk Group (XTRA:VH2)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Friedrich Vorwerk Group SE specializes in delivering solutions for the transformation and transportation of energy across Germany and Europe, with a market capitalization of approximately €0.38 billion.

Operations: The company generates revenue through various segments including electricity (€72.07 million), natural gas (€157.60 million), clean hydrogen (€28.59 million), and adjacent opportunities (€118.73 million).

Insider Ownership: 18%

Friedrich Vorwerk Group SE, a company with significant insider ownership in Germany, demonstrated robust growth in its Q1 2024 earnings with sales and net income showing noticeable improvement from the previous year. The firm's revenue is expected to grow at 8.3% annually, outpacing the German market's 5.2%. Moreover, earnings are projected to increase significantly by 30.4% per year over the next three years. Despite these positives, a low forecasted return on equity of 11% suggests potential challenges in efficiency or profitability ahead.

• Get an in-depth perspective on Friedrich Vorwerk Group's performance by reading our analyst estimates report here.
• The analysis detailed in our Friedrich Vorwerk Group valuation report hints at an inflated share price compared to its estimated value.

Next Steps

• Navigate through the entire inventory of 18 Fast Growing German Companies With High Insider Ownership here.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

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.

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