Stock Analysis

3 High Growth German Stocks With Up To 26% Insider Ownership

XTRA:RDC
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In the midst of global market volatility and economic uncertainty, Germany's DAX index has seen a notable decline of 4.11% recently, reflecting broader concerns about growth and inflation across Europe. Despite these challenges, certain high-growth companies with significant insider ownership continue to stand out as promising investments. High insider ownership often signals strong confidence from those closest to the company, which can be particularly appealing in turbulent markets.

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%
Deutsche Beteiligungs (XTRA:DBAN)39.3%34.7%
Exasol (XTRA:EXL)25.3%105.4%
NAGA Group (XTRA:N4G)14.1%78.3%
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%49.7%
Friedrich Vorwerk Group (XTRA:VH2)18%30.4%

Click here to see the full list of 19 stocks from our Fast Growing German Companies With High Insider Ownership screener.

Underneath we present a selection of stocks filtered out by our screen.

Brockhaus Technologies (XTRA:BKHT)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Brockhaus Technologies AG is a private equity firm with a market cap of approximately €295.67 million.

Operations: Brockhaus Technologies AG generates revenue primarily from its Security Technologies segment (€39.43 million) and Financial Technologies segment (€153.43 million).

Insider Ownership: 26.6%

Brockhaus Technologies is forecast to achieve annual earnings growth of 74.21% and become profitable within three years, a performance above the average market growth. Despite trading at 79.6% below its estimated fair value, its revenue growth rate of 17.8% per year is slower than desired for high-growth companies but still outpaces the German market's 5.2%. Recent earnings showed increased sales to €39.85 million but also a higher net loss of €1.38 million compared to last year’s €0.488 million loss.

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

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 €2.73 billion.

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

Insider Ownership: 17.7%

Redcare Pharmacy's recent earnings report showed sales of €1.12 billion for the first half of 2024, up from €791.94 million a year ago, with a reduced net loss of €12.07 million compared to €14.78 million previously. Despite high volatility and past shareholder dilution, it trades at 65.4% below its estimated fair value and is expected to grow revenue by 17% annually, outpacing the German market's 5.2%. Profitability is forecast within three years with earnings growing at 49.7% per year.

XTRA:RDC Earnings and Revenue Growth as at Aug 2024
XTRA:RDC 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 €344.80 million.

Operations: Friedrich Vorwerk Group SE generates revenue from four primary segments: Electricity (€72.07 million), Natural Gas (€157.60 million), Clean Hydrogen (€28.59 million), and Adjacent Opportunities (€118.73 million).

Insider Ownership: 18%

Friedrich Vorwerk Group SE reported Q1 2024 earnings with sales of €76.71 million and net income of €1.56 million, both showing year-over-year growth. The company's revenue is forecast to grow at 8.3% annually, faster than the German market's 5.2%, while earnings are expected to increase by 30.4% per year, outpacing the market's 20%. With a price-to-earnings ratio of 31.5x below industry average and no recent insider trading activity, it remains a key growth prospect in Germany with significant insider ownership.

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