Stock Analysis

3 German Growth Stocks With High Insider Ownership

XTRA:VH2
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Germany's DAX has recently climbed 3.38%, reflecting optimism in the European market amid hopes for interest rate cuts. This positive momentum provides a conducive backdrop for growth stocks, particularly those with high insider ownership, which often signals strong confidence from those closest to the company. In this environment, identifying growth companies with substantial insider ownership can be crucial. Such stocks not only benefit from favorable market conditions but also demonstrate a commitment and belief in long-term potential by their key stakeholders.

Top 10 Growth Companies With High Insider Ownership In Germany

NameInsider OwnershipEarnings Growth
pferdewetten.de (XTRA:EMH)26.8%75.4%
Stemmer Imaging (XTRA:S9I)26.1%23.2%
Deutsche Beteiligungs (XTRA:DBAN)39.4%63.5%
Exasol (XTRA:EXL)25.3%117.1%
NAGA Group (XTRA:N4G)14.1%78.3%
Alelion Energy Systems (DB:2FZ)37.4%106.6%
Stratec (XTRA:SBS)30.9%20.3%
Friedrich Vorwerk Group (XTRA:VH2)18%23.3%
elumeo (XTRA:ELB)25.8%120.2%
Your Family Entertainment (DB:RTV)17.5%116.8%

Click here to see the full list of 21 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.

Stratec (XTRA:SBS)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Stratec SE, with a market cap of €531.82 million, designs and manufactures automation and instrumentation solutions for in-vitro diagnostics and life sciences in Germany, the European Union, and internationally.

Operations: The company's revenue segments are in-vitro diagnostics (€252.60 million) and life sciences (€22.40 million).

Insider Ownership: 30.9%

Stratec SE has demonstrated solid growth potential, with recent earnings showing a significant increase in net income to €3.48 million for Q2 2024, up from €1.05 million the previous year. Despite revenue growth forecasts of 7.9% annually being modest, earnings are expected to grow significantly at 20.34% per year, outpacing the German market average. The stock trades at a substantial discount to its estimated fair value and exhibits high insider ownership, indicating strong internal confidence in its future performance.

XTRA:SBS Earnings and Revenue Growth as at Aug 2024
XTRA:SBS Earnings and Revenue Growth as at Aug 2024

Friedrich Vorwerk Group (XTRA:VH2)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Friedrich Vorwerk Group SE offers solutions for the transformation and transportation of energy across Germany and Europe, with a market cap of €418 million.

Operations: Friedrich Vorwerk Group SE generates revenue from four main segments: Electricity (€95.30 million), Natural Gas (€160.89 million), Clean Hydrogen (€28.38 million), and Adjacent Opportunities (€117.28 million).

Insider Ownership: 18%

Friedrich Vorwerk Group SE, a growth company with high insider ownership, reported strong earnings for Q2 2024, with net income rising to €7.96 million from €2.38 million a year ago. Revenue grew to €121.04 million from €96.41 million in the same period. Earnings are forecasted to grow significantly at 23.28% per year, outpacing both its revenue growth and the German market average, while trading at a notable discount to its estimated fair value.

XTRA:VH2 Ownership Breakdown as at Aug 2024
XTRA:VH2 Ownership Breakdown as at Aug 2024

Zalando (XTRA:ZAL)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Zalando SE operates an online platform for fashion and lifestyle products with a market cap of approximately €6.19 billion.

Operations: Zalando SE generates its revenue from an online platform specializing in fashion and lifestyle products, with a segment adjustment of €10.49 billion.

Insider Ownership: 10.4%

Zalando, trading at 58.1% below its estimated fair value, is expected to see earnings grow significantly at 24.63% per year, outpacing the German market. Recent Q2 2024 results showed sales of €2.64 billion and net income of €95.7 million, up from €56.6 million a year ago. Despite slower revenue growth (5.6% per year), Zalando's strong earnings trajectory and substantial insider ownership highlight its potential as a growth stock in Germany.

XTRA:ZAL Ownership Breakdown as at Aug 2024
XTRA:ZAL Ownership Breakdown as at Aug 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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