Stock Analysis

German Growth Companies With Insider Ownership For October 2024

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As Germany's DAX index recently surged, buoyed by hopes for interest rate cuts and China's economic stimulus measures, the focus on growth companies with high insider ownership becomes increasingly relevant. In this environment, stocks with significant insider ownership can be appealing as they often indicate confidence from those closest to the company's operations and strategy.

Top 10 Growth Companies With High Insider Ownership In Germany

NameInsider OwnershipEarnings Growth
Stemmer Imaging (XTRA:S9I)25%23.2%
Exasol (XTRA:EXL)25.3%117.1%
Deutsche Beteiligungs (XTRA:DBAN)39.5%54.1%
adidas (XTRA:ADS)16.6%41.8%
pferdewetten.de (XTRA:EMH)20.6%97.9%
Alelion Energy Systems (DB:2FZ)37.4%106.6%
R. STAHL (XTRA:RSL2)37.9%59.3%
Friedrich Vorwerk Group (XTRA:VH2)18.8%24.6%
elumeo (XTRA:ELB)25.8%120.2%
Your Family Entertainment (DB:RTV)17.3%124.4%

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

We're going to check out a few of the best picks from our screener tool.

adidas (XTRA:ADS)

Simply Wall St Growth Rating: ★★★★★☆

Overview: adidas AG, along with its subsidiaries, 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 with a market cap of approximately €42.23 billion.

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%

Adidas has shown strong growth potential with a significant increase in net income, reaching €190 million in Q2 2024 compared to €84 million the previous year. Earnings per share also improved markedly. The company raised its full-year guidance, expecting operating profit to reach around €1 billion despite unfavorable currency effects impacting profitability. Revenue and earnings growth are forecasted to outpace the German market, with earnings expected to grow significantly over the next three years.

XTRA:ADS Ownership Breakdown as at Oct 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 €2.75 billion.

Operations: The company generates revenue through its DACH segment, amounting to €1.74 billion, and its International segment, which contributes €391 million.

Insider Ownership: 17.4%

Redcare Pharmacy demonstrates growth potential with forecasted earnings growth of 51.63% annually, despite a volatile share price and recent insider selling. The company is expected to become profitable within three years, outpacing the German market's revenue growth rate at 16.9% per year. However, it trades significantly below its estimated fair value and has experienced shareholder dilution recently. Recent sales figures show improvement with €1.12 billion in sales for H1 2024 compared to €791.94 million previously, though net losses persist at €12.07 million.

XTRA:RDC Ownership Breakdown as at Oct 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 €7.49 billion.

Operations: Zalando SE generates revenue through its online platform for fashion and lifestyle products, with a segment adjustment totaling €10.49 billion.

Insider Ownership: 10.4%

Zalando is trading at 50.5% below its estimated fair value, indicating potential undervaluation. The company reported strong earnings growth of 84.3% over the past year, with future earnings expected to grow at 24.8% annually, outpacing the German market's forecasted growth of 20.2%. Despite this positive outlook, Zalando's revenue growth is projected at a modest 5.6% per year and Return on Equity remains low at a forecasted 12.7%. Recent executive changes include CFO Dr. Sandra Dembeck not renewing her contract beyond February 2025.

XTRA:ZAL Ownership Breakdown as at Oct 2024

Summing It All Up

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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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