July 2024 Insight Into German Growth Companies With High Insider Ownership

As of July 2024, the German market shows resilience with a modest rise in the DAX index despite broader European economic uncertainties and upcoming political events. This backdrop sets an intriguing stage for examining growth companies in Germany, particularly those with high insider ownership which often signals strong confidence in the company's future from those who know it best.

Top 10 Growth Companies With High Insider Ownership In Germany

Name	Insider Ownership	Earnings Growth
pferdewetten.de (XTRA:EMH)	26.8%	75.4%
Deutsche Beteiligungs (XTRA:DBAN)	35.4%	31.6%
YOC (XTRA:YOC)	24.8%	21.8%
NAGA Group (XTRA:N4G)	14.1%	79.2%
Exasol (XTRA:EXL)	25.3%	105.4%
Alelion Energy Systems (DB:2FZ)	37.4%	106.6%
Stratec (XTRA:SBS)	30.9%	21.9%
elumeo (XTRA:ELB)	25.8%	99.1%
Your Family Entertainment (DB:RTV)	17.5%	116.8%
Friedrich Vorwerk Group (XTRA:VH2)	18%	30.4%

Click here to see the full list of 18 stocks from our Fast Growing German Companies With High Insider Ownership screener.

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

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 €2.63 billion.

Operations: The company generates revenue primarily through its DACH region operations, which brought in €1.62 billion, and its international segment, contributing €369.34 million.

Insider Ownership: 17.7%

Earnings Growth Forecast: 46.7% p.a.

Redcare Pharmacy, a German growth company with significant insider ownership, reported a substantial increase in sales to €560.22 million in Q1 2024 from €372.05 million the previous year, alongside a reduced net loss of €7.81 million. Despite recent share price volatility and trading at 37.9% below its estimated fair value, Redcare is on track to become profitable within three years with expected revenue growth outpacing the German market average significantly. However, its forecasted return on equity remains modest at 13%.

• Get an in-depth perspective on Redcare Pharmacy's performance by reading our analyst estimates report here.
• According our valuation report, there's an indication that Redcare Pharmacy's share price might be on the expensive side.

Stratec (XTRA:SBS)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Stratec SE operates in designing and manufacturing automation and instrumentation solutions for in-vitro diagnostics and life sciences across Germany, the European Union, and internationally, with a market cap of approximately €0.57 billion.

Operations: The company generates its revenue primarily from the design and manufacture of automation and instrumentation solutions for in-vitro diagnostics and life sciences sectors across various regions.

Insider Ownership: 30.9%

Earnings Growth Forecast: 21.9% p.a.

Stratec SE, a German growth company with high insider ownership, has shown mixed financial performance recently. In Q1 2024, sales dropped to €50.87 million from €60.48 million the previous year, and net income decreased to €0.447 million from €1.37 million. Despite this downturn, Stratec's earnings are projected to grow by 21.9% annually over the next three years, outpacing the German market forecast of 18.7%. However, its current profit margins have declined and debt is not well covered by operating cash flow.

• Dive into the specifics of Stratec here with our thorough growth forecast report.
• Insights from our recent valuation report point to the potential overvaluation of Stratec shares in the market.

Zalando (XTRA:ZAL)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Zalando SE is an online retailer specializing in fashion and lifestyle products, with a market capitalization of approximately €6.01 billion.

Operations: The company generates €10.40 billion from its primary operations in the online fashion and lifestyle retail sector.

Insider Ownership: 10.4%

Earnings Growth Forecast: 26.6% p.a.

Zalando SE, despite trading at 53.7% below its estimated fair value, shows promising growth prospects with earnings having surged by 184.3% last year and expected to grow by 26.56% annually. Its revenue growth is projected at 5.4% per year, slightly above the German market's 5.2%. Recent guidance anticipates modest sales growth up to 5% for 2024 with an operating profit outlook, although a net loss was reported in Q1 of €8.9 million on sales of €2.24 billion.

• Unlock comprehensive insights into our analysis of Zalando stock in this growth report.
• Upon reviewing our latest valuation report, Zalando's share price might be too optimistic.

Turning Ideas Into Actions

• Investigate our full lineup of 18 Fast Growing German Companies With High Insider Ownership right here.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
• Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets.

Interested In Other Possibilities?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• Find companies with promising cash flow potential yet trading below their fair value.

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.

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