Stock Analysis

Three German Exchange Growth Companies With Insider Ownership And Earnings Growth Of At Least 30%

XTRA:RDC
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Amidst a landscape of moderate gains across major German indices, the German market shows resilience with notable advancements in specific sectors. This context sets an interesting stage for examining growth companies with high insider ownership, which often signals confidence in long-term prospects and aligns interests between shareholders and management—a particularly appealing trait in the current economic environment.

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%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%
Redcare Pharmacy (XTRA:RDC)17.7%47.4%
Friedrich Vorwerk Group (XTRA:VH2)18%30.4%

Click here to see the full list of 17 stocks from our Fast Growing German Companies With High Insider Ownership screener.

Let's dive into some prime choices out of from the 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 €2.06 billion.

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

Insider Ownership: 35.1%

Earnings Growth Forecast: 31.9% p.a.

Hypoport SE, a German company with substantial insider ownership, has demonstrated robust growth with earnings surging by 240.5% over the past year and forecasts indicating a significant annual increase of 31.9% for the next three years. Despite slower revenue growth projections at 13.4% annually, this still outpaces the broader German market's 5.5%. However, its Return on Equity is expected to remain low at 9.1%. Recent financial results showed a strong first quarter in 2024, with sales rising to €107.47 million and net income increasing to €3.04 million from €0.503 million year-over-year.

XTRA:HYQ Earnings and Revenue Growth as at Jul 2024
XTRA:HYQ Earnings and Revenue Growth 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 €2.72 billion.

Operations: The company generates revenue primarily from two segments: the DACH region (€1.62 billion) and other international markets (€0.37 billion).

Insider Ownership: 17.7%

Earnings Growth Forecast: 47.4% p.a.

Redcare Pharmacy, while not a leader in growth companies with high insider ownership in Germany, shows potential with an expected profitability within three years and revenue growth forecasted at 17.1% annually, surpassing the German market average of 5.5%. However, challenges include a highly volatile share price and shareholder dilution over the past year. Recent earnings show improvement with Q1 sales up to €560.22 million from €372.05 million year-over-year, and a reduced net loss of €7.81 million down from €10.22 million.

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

Friedrich Vorwerk Group (XTRA:VH2)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Friedrich Vorwerk Group SE specializes in offering 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 segments focused on electricity (€72.07 million), natural gas (€157.60 million), clean hydrogen (€28.59 million), and adjacent opportunities (€118.73 million).

Insider Ownership: 18%

Earnings Growth Forecast: 30.4% p.a.

Friedrich Vorwerk Group SE, a participant in the high insider ownership segment in Germany, reported a robust first quarter with sales rising to €76.71 million and net income improving to €1.56 million. The company's earnings are projected to grow by 30.4% annually, outpacing the German market forecast of 18.7%. Despite this, its revenue growth of 8.3% per year is below the high-growth benchmark of 20%, and its forecasted return on equity is considered low at 11% after three years.

XTRA:VH2 Earnings and Revenue Growth as at Jul 2024
XTRA:VH2 Earnings and Revenue Growth as at Jul 2024

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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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