Stock Analysis

Exploring Three German Growth Companies With High Insider Ownership On The Exchange

XTRA:VH2
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As inflation and policy adjustments stir the European markets, Germany's DAX index has recently faced a decline, reflecting broader uncertainties. In this context, exploring growth companies with high insider ownership in Germany offers an intriguing perspective on potential resilience and long-term value creation in turbulent times.

Top 10 Growth Companies With High Insider Ownership In Germany

NameInsider OwnershipEarnings Growth
pferdewetten.de (XTRA:EMH)26.8%73.8%
Deutsche Beteiligungs (XTRA:DBAN)35.3%31.6%
YOC (XTRA:YOC)24.8%22.2%
NAGA Group (XTRA:N4G)14.1%58.1%
Exasol (XTRA:EXL)25.3%107.4%
Alelion Energy Systems (DB:2FZ)37.4%106.6%
Stratec (XTRA:SBS)30.9%22%
elumeo (XTRA:ELB)25.8%99.1%
Redcare Pharmacy (XTRA:RDC)17.7%46.9%
Friedrich Vorwerk Group (XTRA:VH2)18%29.9%

Click here to see the full list of 17 stocks from our Fast Growing German Companies With High Insider Ownership screener.

Let's review some notable picks from our screened stocks.

Redcare Pharmacy (XTRA:RDC)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Redcare Pharmacy NV is an online pharmacy operating across the Netherlands, Germany, Italy, Belgium, Switzerland, Austria, and France with a market capitalization of approximately €2.37 billion.

Operations: The company generates €1.62 billion from its DACH region operations and €0.37 billion internationally.

Insider Ownership: 17.7%

Redcare Pharmacy, a German growth company with high insider ownership, reported a notable increase in sales to €560.22 million from €372.05 million year-over-year in Q1 2024, alongside a reduced net loss of €7.81 million. Despite past shareholder dilution and highly volatile share prices recently, the company is poised for significant earnings growth at an annual rate of 46.92%. It trades at 41.1% below estimated fair value and is expected to become profitable within three years, outpacing average market growth predictions.

XTRA:RDC Ownership Breakdown as at Jun 2024
XTRA:RDC Ownership Breakdown as at Jun 2024

Stratec (XTRA:SBS)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Stratec SE operates in Germany and internationally, designing and manufacturing automation and instrumentation solutions for in-vitro diagnostics and life sciences, with a market capitalization of approximately €580.45 million.

Operations: The company generates its revenue from designing and manufacturing automation and instrumentation solutions for in-vitro diagnostics and life sciences across Germany, the European Union, and other global markets.

Insider Ownership: 30.9%

Stratec SE, a German company with high insider ownership, has shown mixed financial performance recently. In Q1 2024, sales dropped to €50.87 million from €60.48 million year-over-year, and net income decreased to €0.447 million from €1.37 million. Despite this downturn, the company's earnings are expected to grow by 22% per year, outperforming the German market forecast of 18.8% growth in earnings per annum. Stratec trades at a significant discount of 41.4% below its estimated fair value.

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

Friedrich Vorwerk Group (XTRA:VH2)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Friedrich Vorwerk Group SE specializes in offering solutions for the transformation and transportation of energy across Germany and Europe, with a market capitalization of approximately €0.36 billion.

Operations: The company generates revenue primarily through segments focused on 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, recognized for high insider ownership, is trading at 4.1% below its estimated fair value and shows promising growth prospects in Germany. The company's revenue is expected to increase by 6.7% annually, outpacing the German market's 5% growth rate. Earnings are projected to surge by nearly 30% each year, significantly above the market forecast of 18.8%. Recent financial results reflect a robust uptrend with Q1 2024 net income more than doubling year-over-year to €1.56 million from €0.748 million.

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

Where To Now?

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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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