3 German Growth Stocks With High Insider Ownership And Up To 24% Earnings Growth

As the German DAX index climbs 3.38% amid growing hopes for interest rate cuts, investors are increasingly looking for growth opportunities that align with current market optimism. In this environment, stocks with high insider ownership often signal strong confidence from those closest to the company, making them compelling choices for investors seeking robust earnings growth potential.

Top 10 Growth Companies With High Insider Ownership In Germany

Name	Insider Ownership	Earnings 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%
Redcare Pharmacy (XTRA:RDC)	17.7%	50.1%
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.

Here we highlight a subset of our preferred stocks from the screener.

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 both in Germany and internationally.

Operations: The company's revenue segments include automation and instrumentation solutions for in-vitro diagnostics and life sciences across Germany, the European Union, and international markets.

Insider Ownership: 30.9%

Earnings Growth Forecast: 20.3% p.a.

Stratec SE, a German company with significant insider ownership, reported strong earnings for Q2 2024 with sales of €68.21 million and net income of €3.48 million. Despite being valued at 54.9% below its fair value estimate, Stratec's annual profit growth is expected to outpace the German market at 20.34%. However, its revenue growth forecast of 7.9% per year is slower than desired for high-growth companies, and return on equity remains modest at a projected 10.8%.

• Click here to discover the nuances of Stratec with our detailed analytical future growth report.
• According our valuation report, there's an indication that Stratec'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 energy transformation and transportation 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%

Earnings Growth Forecast: 23.3% p.a.

Friedrich Vorwerk Group, with substantial insider ownership, is trading 42.9% below its fair value estimate. Recent earnings for Q2 2024 showed significant growth, with sales at €117.41 million and net income of €7.96 million, up from €2.38 million a year ago. Earnings are forecast to grow 23.28% annually over the next three years, outpacing the German market's expected rate of 20%. However, revenue growth is projected at a slower pace of 7.6% per year and return on equity remains modest at an estimated 11.9%.

• Dive into the specifics of Friedrich Vorwerk Group here with our thorough growth forecast report.
• Insights from our recent valuation report point to the potential undervaluation of Friedrich Vorwerk Group shares in the market.

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 €6.19 billion.

Operations: Zalando SE generates its revenue primarily through an online platform for fashion and lifestyle products, with segment adjustments amounting to €10.49 billion.

Insider Ownership: 10.4%

Earnings Growth Forecast: 24.6% p.a.

Zalando SE, with substantial insider ownership, reported strong Q2 2024 earnings, showing sales of €2.64 billion and net income of €95.7 million, up from €56.6 million a year ago. Despite trading at 58.1% below its fair value estimate and having an expected annual earnings growth of 24.63%, revenue growth is forecasted to be slower at 5.6% per year, slightly above the German market average but below high-growth benchmarks.

• Delve into the full analysis future growth report here for a deeper understanding of Zalando.
• Our expertly prepared valuation report Zalando implies its share price may be too high.

Key Takeaways

• Embark on your investment journey to our 21 Fast Growing German Companies With High Insider Ownership selection 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.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com