Stock Analysis

3 German Growth Stocks With Up To 25% Insider Ownership

XTRA:ADS
Source: Shutterstock

The German market has recently shown resilience, with the DAX rising 2.17% amid an interest rate cut from the European Central Bank. This environment of cautious optimism makes it an ideal time to explore growth companies with substantial insider ownership, which often signals strong confidence in a company's future prospects. In this article, we will highlight three German growth stocks where insiders hold up to 25% ownership, underscoring their potential for robust performance in a recovering market.

Top 10 Growth Companies With High Insider Ownership In Germany

NameInsider OwnershipEarnings Growth
pferdewetten.de (XTRA:EMH)26.8%70.6%
Stemmer Imaging (XTRA:S9I)25.2%23.2%
Deutsche Beteiligungs (XTRA:DBAN)39.5%54.1%
Exasol (XTRA:EXL)25.3%117.1%
adidas (XTRA:ADS)16.6%41.8%
Alelion Energy Systems (DB:2FZ)37.4%106.6%
R. STAHL (XTRA:RSL2)37.9%59.3%
Friedrich Vorwerk Group (XTRA:VH2)18%24.6%
elumeo (XTRA:ELB)25.8%120.2%
Your Family Entertainment (DB:RTV)17.3%116.8%

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

Let's explore several standout options from the results in the screener.

adidas (XTRA:ADS)

Simply Wall St Growth Rating: ★★★★★☆

Overview: adidas AG, with a market cap of €39.48 billion, designs, develops, produces, and markets athletic and sports lifestyle products across Europe, the Middle East, Africa, North America, Greater China, the Asia-Pacific region, and Latin America.

Operations: The company's revenue segments include Greater China (€3.26 billion), Latin America (€2.39 billion), and North America (€5.07 billion).

Insider Ownership: 16.6%

adidas AG, a growth company with high insider ownership in Germany, has shown remarkable earnings performance. For the second quarter of 2024, sales rose to €5.82 billion from €5.34 billion a year ago, while net income more than doubled to €190 million. Earnings per share also saw substantial increases. The company's earnings are forecast to grow significantly at 41.8% annually over the next three years and are expected to outperform the German market's growth rate of 20%.

XTRA:ADS Ownership Breakdown as at Sep 2024
XTRA:ADS Ownership Breakdown as at Sep 2024

Verve Group (XTRA:M8G)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Verve Group SE operates a software platform for the automated buying and selling of digital advertising space in North America and Europe, with a market cap of €642.93 million.

Operations: Verve Group SE generates revenue from its Demand Side Platforms (DSP) amounting to €57.59 million and Supply Side Platforms (SSP) totaling €341.35 million.

Insider Ownership: 25.1%

Verve Group SE has demonstrated substantial growth, with Q2 2024 sales reaching €102.82 million, up from €82.56 million a year ago, and net income rising to €6.26 million from €1.74 million. The company raised its 2024 revenue guidance to between €400 million and €420 million and completed a fixed-income offering of €66.625 million to refinance existing debt at better terms, reducing annual interest costs by at least €10 million.

XTRA:M8G Earnings and Revenue Growth as at Sep 2024
XTRA:M8G Earnings and Revenue Growth as at Sep 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 €6.62 billion.

Operations: Zalando SE generates revenue of approximately €10.49 billion from its online platform for fashion and lifestyle products.

Insider Ownership: 10.4%

Zalando SE, a growth company with high insider ownership, reported Q2 2024 sales of €2.64 billion, up from €2.56 billion a year ago, and net income of €95.7 million compared to €56.6 million previously. Despite CFO Dr. Sandra Dembeck's upcoming departure in early 2025, Zalando’s earnings are forecast to grow significantly at 25.1% per year over the next three years, outpacing the German market average of 20%. The stock trades at a significant discount to its estimated fair value but has low return on equity forecasts (12.8%).

XTRA:ZAL Ownership Breakdown as at Sep 2024
XTRA:ZAL Ownership Breakdown as at Sep 2024

Key Takeaways

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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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