Stock Analysis

Discover 3 High Growth German Stocks With Strong Insider Ownership

XTRA:ZAL
Source: Shutterstock

Germany's DAX Index has recently surged by 4.03%, buoyed by hopes of interest rate cuts amid slowing business activity in the Eurozone and new stimulus measures from China. As the German economy navigates this complex landscape, companies with high insider ownership can offer a unique investment perspective, often signaling strong alignment between management and shareholder interests. In this context, identifying growth companies with significant insider ownership becomes particularly compelling. Such stocks not only benefit from robust internal confidence but also stand to gain from favorable market conditions driven by global economic stimuli and potential monetary easing in Europe.

Top 10 Growth Companies With High Insider Ownership In Germany

NameInsider OwnershipEarnings Growth
pferdewetten.de (XTRA:EMH)26.8%98.3%
Stemmer Imaging (XTRA:S9I)24.8%23.2%
Deutsche Beteiligungs (XTRA:DBAN)39.5%54.1%
Exasol (XTRA:EXL)25.3%117.1%
adidas (XTRA:ADS)16.6%42.1%
Alelion Energy Systems (DB:2FZ)37.4%106.6%
Stratec (XTRA:SBS)30.9%20%
R. STAHL (XTRA:RSL2)37.9%59.3%
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.

Below we spotlight a couple of our favorites from our exclusive screener.

adidas (XTRA:ADS)

Simply Wall St Growth Rating: ★★★★★☆

Overview: adidas AG, with a market cap of €42.91 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 €3.26 billion from Greater China, €2.39 billion from Latin America, and €5.07 billion from North America.

Insider Ownership: 16.6%

Earnings Growth Forecast: 42.1% p.a.

adidas AG, trading 13.4% below its estimated fair value, has seen substantial earnings growth, with net income for the second quarter rising to €190 million from €84 million a year ago. Earnings are forecast to grow significantly at 42.1% per year, outpacing the German market's 20%. Revenue is expected to grow at 8.4% annually, faster than the market's 5.5%. Recent guidance revisions project an operating profit of around €1 billion for 2024 despite unfavorable currency effects impacting profitability.

XTRA:ADS Earnings and Revenue Growth as at Sep 2024
XTRA:ADS Earnings and Revenue Growth as at Sep 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 €2.77 billion.

Operations: The company generates revenue from two primary segments: €1.74 billion from the DACH region and €391 million internationally.

Insider Ownership: 17.4%

Earnings Growth Forecast: 51.8% p.a.

Redcare Pharmacy reported half-year 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. Despite significant insider selling and recent share price volatility, the company is forecast to become profitable within three years with an annual earnings growth rate of 51.83%. Trading at 66.2% below its estimated fair value, Redcare's revenue is expected to grow at 17.1% annually, outpacing the German market's 5.5%.

XTRA:RDC Earnings and Revenue Growth as at Sep 2024
XTRA:RDC 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 €7.63 billion.

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

Insider Ownership: 10.4%

Earnings Growth Forecast: 25.1% p.a.

Zalando's earnings surged 84.3% over the past year, with future earnings expected to grow at 25.1% annually, outpacing the German market's 20%. Despite a slower revenue growth forecast of 5.6% per year, Zalando trades at nearly half its estimated fair value. Recent events include CFO Dr. Sandra Dembeck’s departure and presentations at key investment conferences in Munich, reflecting active engagement with investors amid robust financial performance and strategic leadership changes.

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

Summing It All Up

Interested In Other Possibilities?

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.

Valuation is complex, but we're here to simplify it.

Discover if Zalando might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

Access Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com