Stock Analysis

3 High Growth German Stocks With Strong Insider Ownership

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As the European markets continue to show resilience, with Germany's DAX climbing 3.38% recently, investors are increasingly looking for high-growth opportunities within the region. In this context, growth companies with strong insider ownership often stand out as promising investments due to their potential for robust performance and alignment of interests between management and shareholders.

Top 10 Growth Companies With High Insider Ownership In Germany

NameInsider OwnershipEarnings Growth
pferdewetten.de (XTRA:EMH)26.8%75.4%
YOC (XTRA:YOC)24.8%21.8%
Stemmer Imaging (XTRA:S9I)26.1%23.2%
Deutsche Beteiligungs (XTRA:DBAN)39.4%63.5%
Exasol (XTRA:EXL)25.3%124.6%
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%
Friedrich Vorwerk Group (XTRA:VH2)18%23.3%

Click here to see the full list of 22 stocks from our Fast Growing German Companies With High Insider Ownership screener.

Let's dive into some prime choices out of the screener.

Stratec (XTRA:SBS)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Stratec SE, with a market cap of €519.67 million, designs and manufactures automation and instrumentation solutions for in-vitro diagnostics and life sciences in Germany, the European Union, and internationally.

Operations: Revenue Segments (in millions of €): 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%

Stratec SE, a company with significant insider ownership, reported strong earnings for Q2 2024, with sales of €68.21 million and net income rising to €3.48 million from €1.05 million the previous year. Despite revenue growth forecasted at 7.9% annually—below the high-growth threshold—earnings are expected to grow significantly at 20.3% per year, outpacing the German market average. The stock trades at a substantial discount to its estimated fair value, enhancing its appeal as a growth investment opportunity in Germany.

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 diverse solutions for energy transformation and transportation across Germany and Europe, with a market cap of €422 million.

Operations: The company's revenue segments include 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, with substantial insider ownership, reported robust Q2 2024 results: sales rose to €117.41 million from €92.55 million, and net income increased to €7.96 million from €2.38 million the previous year. The company updated its fiscal year 2024 revenue guidance to exceed €410 million, indicating at least 10% growth over 2023. Earnings are forecasted to grow significantly at 23.3% per year, outpacing the German market average of 20%.

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 €5.96 billion.

Operations: Zalando SE generates revenue from its online platform for fashion and lifestyle products, amounting to €10.49 billion.

Insider Ownership: 10.4%

Zalando SE, a growth company with high insider ownership, reported strong Q2 2024 results: sales increased to €2.64 billion from €2.56 billion, and net income rose to €95.7 million from €56.6 million a year ago. Earnings are forecasted to grow significantly at 24.64% per year, outpacing the German market average of 20%. Despite trading at 59.5% below estimated fair value, revenue growth is expected to be modest at 5.6% annually over the next three years.

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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