Stock Analysis

Top German Growth Stocks With High Insider Ownership In July 2024

XTRA:VH2
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As of July 2024, the German market has shown resilience amid mixed global economic signals, with the DAX gaining 1.35% over the past week. This backdrop provides an interesting environment to explore growth companies with high insider ownership, as these stocks often signal strong confidence from those closest to the business. In such a market, identifying growth stocks with significant insider ownership can be particularly compelling since it suggests that company executives and key stakeholders have substantial skin in the game and believe in their company's long-term potential.

Top 10 Growth Companies With High Insider Ownership In Germany

NameInsider OwnershipEarnings Growth
pferdewetten.de (XTRA:EMH)26.8%75.4%
Deutsche Beteiligungs (XTRA:DBAN)39.3%34.7%
YOC (XTRA:YOC)24.8%21.8%
NAGA Group (XTRA:N4G)14.1%78.3%
Exasol (XTRA:EXL)25.3%105.4%
Alelion Energy Systems (DB:2FZ)37.4%106.6%
Stratec (XTRA:SBS)30.9%21.9%
Redcare Pharmacy (XTRA:RDC)17.7%47.4%
Your Family Entertainment (DB:RTV)17.5%116.8%
Encavis (XTRA:ECV)15.6%30.1%

Click here to see the full list of 20 stocks from our Fast Growing German Companies With High Insider Ownership screener.

Here's a peek at a few of the choices from the screener.

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 €2.96 billion.

Operations: The company's revenue segments are comprised of €1.62 billion from the DACH region and €369.34 million from international markets.

Insider Ownership: 17.7%

Earnings Growth Forecast: 47.4% p.a.

Redcare Pharmacy is expected to become profitable in the next 3 years, with earnings forecasted to grow 47.38% annually. Despite a highly volatile share price and past shareholder dilution, it trades at 70.7% below our fair value estimate. Recent earnings for H1 2024 showed sales of €1.12 billion, up from €791.94 million a year ago, with a reduced net loss of €12.07 million compared to €14.78 million previously, indicating improving financial health amidst strong insider ownership.

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

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 €402 million.

Operations: The company's revenue segments include Electricity (€72.07 million), Natural Gas (€157.60 million), Clean Hydrogen (€28.59 million), and Adjacent Opportunities (€118.73 million).

Insider Ownership: 18%

Earnings Growth Forecast: 30.4% p.a.

Friedrich Vorwerk Group SE's earnings are forecast to grow 30.45% annually, outpacing the German market's expected growth of 19.6%. Recent Q1 2024 results showed revenue increasing to €81.2 million from €78.51 million and net income doubling to €1.56 million, reflecting strong financial performance despite slower revenue growth (8.3% per year) compared to industry benchmarks. With significant insider ownership, the company presents a compelling case for growth-focused investors in Germany.

XTRA:VH2 Ownership Breakdown as at Jul 2024
XTRA:VH2 Ownership Breakdown as at Jul 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 €6.18 billion.

Operations: Zalando SE's revenue segments include Reconciliation at -€274.10 million and Segment Adjustment at €10.40 billion.

Insider Ownership: 10.4%

Earnings Growth Forecast: 26.4% p.a.

Zalando SE, a growth company with high insider ownership, is forecast to see earnings grow 26.42% annually, outpacing the German market's 19.6% average. Despite revenue growth of only 5.4% per year, Zalando trades at 52.4% below its estimated fair value and expects an operating profit in 2024 with gross merchandise volume and sales growth between 0%-5%. Recent presentations at major conferences highlight the company's proactive engagement with investors and stakeholders.

XTRA:ZAL Earnings and Revenue Growth as at Jul 2024
XTRA:ZAL Earnings and Revenue Growth as at Jul 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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