3 German Growth Stocks Boasting 51% Earnings Growth

The German market has shown resilience amid global economic shifts, with the DAX index posting modest gains despite broader European caution following the U.S. Federal Reserve's interest rate cut. In this context, identifying growth stocks with substantial insider ownership can be particularly valuable, as these companies often demonstrate strong earnings potential and alignment between management and shareholder interests. In this article, we will explore three German growth stocks that have achieved an impressive 51% earnings growth while maintaining high levels of insider ownership.

Top 10 Growth Companies With High Insider Ownership In Germany

Name	Insider Ownership	Earnings Growth
pferdewetten.de (XTRA:EMH)	26.8%	98.3%
Stemmer Imaging (XTRA:S9I)	25.2%	23.2%
Deutsche Beteiligungs (XTRA:DBAN)	39.5%	54.1%
Exasol (XTRA:EXL)	25.3%	117.1%
adidas (XTRA:ADS)	16.6%	42.1%
Alelion Energy Systems (DB:2FZ)	37.4%	106.6%
Beyond Frames Entertainment (DB:8WP)	10.8%	112.2%
Redcare Pharmacy (XTRA:RDC)	17.4%	51.8%
Friedrich Vorwerk Group (XTRA:VH2)	18%	24.6%
Your Family Entertainment (DB:RTV)	17.3%	116.8%

Click here to see the full list of 20 stocks from our Fast Growing German Companies With High Insider Ownership screener.

Let's explore several standout options from the results in the screener.

Redcare Pharmacy (XTRA:RDC)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Redcare Pharmacy NV operates an online pharmacy business across the Netherlands, Germany, Italy, Belgium, Switzerland, Austria, and France with a market cap of €2.45 billion.

Operations: The company's revenue segments include €1.74 billion from the DACH region and €391 million from International markets.

Insider Ownership: 17.4%

Earnings Growth Forecast: 51.8% p.a.

Redcare Pharmacy's revenue is forecast to grow at 17.1% per year, outpacing the German market's 5.5%. Despite a net loss of €12.07 million for H1 2024, this is an improvement from last year's €14.78 million loss. Insiders have been buying more shares than selling in the past three months, indicating confidence in future profitability within three years. The stock trades at 70.1% below its estimated fair value but has experienced high volatility recently.

• Dive into the specifics of Redcare Pharmacy here with our thorough growth forecast report.
• According our valuation report, there's an indication that Redcare Pharmacy's share price might be on the expensive side.

Friedrich Vorwerk Group (XTRA:VH2)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Friedrich Vorwerk Group SE offers solutions for the transformation and transportation of energy in Germany and Europe, with a market cap of €468 million.

Operations: Revenue segments for Friedrich Vorwerk Group SE include Electricity (€95.30 million), Natural Gas (€160.89 million), Clean Hydrogen (€28.38 million), and Adjacent Opportunities (€117.28 million).

Insider Ownership: 18%

Earnings Growth Forecast: 24.6% p.a.

Friedrich Vorwerk Group's revenue is expected to grow at 9.7% annually, outpacing the German market's 5.5%. Earnings are forecast to rise significantly at 24.6% per year, faster than the market's 20.1%. Recent earnings showed substantial improvement with Q2 net income of €7.96 million compared to €2.38 million a year ago and updated guidance projects over €410 million in revenue for 2024, indicating continued growth momentum without significant insider trading activity recently reported.

• Click here and access our complete growth analysis report to understand the dynamics of Friedrich Vorwerk Group.
• Upon reviewing our latest valuation report, Friedrich Vorwerk Group's share price might be too optimistic.

Zalando (XTRA:ZAL)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Zalando SE operates an online platform for fashion and lifestyle products and has a market cap of €6.89 billion.

Operations: Zalando SE generates revenue of €10.49 billion from its online fashion and lifestyle platform.

Insider Ownership: 10.4%

Earnings Growth Forecast: 25.1% p.a.

Zalando SE's earnings grew by 84.3% over the past year, with revenue for Q2 2024 at €2.64 billion and net income at €95.7 million, up from €56.6 million a year ago. Earnings are forecast to grow by 25.15% annually, outpacing the German market's average of 20.1%. Despite trading at 53.8% below fair value estimates and recent CFO departure news, Zalando remains a growth company with significant insider ownership and no substantial insider trading reported recently.

• Navigate through the intricacies of Zalando with our comprehensive analyst estimates report here.
• Our expertly prepared valuation report Zalando implies its share price may be too high.

Turning Ideas Into Actions

• Reveal the 20 hidden gems among our Fast Growing German Companies With High Insider Ownership screener with a single click 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.
• Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world.

Interested In Other Possibilities?

• 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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