Stock Analysis
Top German Growth Stocks With Insider Confidence For October 2024
Reviewed by Simply Wall St
As the German economy faces a challenging year with forecasts predicting a contraction, investor interest is turning towards growth companies that demonstrate resilience and potential for recovery. In this environment, stocks with high insider ownership can be particularly appealing as they often signal strong internal confidence in the company's future prospects.
Top 10 Growth Companies With High Insider Ownership In Germany
| Name | Insider Ownership | Earnings Growth |
| Stemmer Imaging (XTRA:S9I) | 25% | 23.2% |
| Multitude (XTRA:E4I) | 31% | 20.7% |
| Exasol (XTRA:EXL) | 25.3% | 117.1% |
| Deutsche Beteiligungs (XTRA:DBAN) | 39.6% | 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% |
| Beyond Frames Entertainment (DB:8WP) | 10.8% | 112.2% |
| Friedrich Vorwerk Group (XTRA:VH2) | 18.8% | 24.6% |
| Your Family Entertainment (DB:RTV) | 17.3% | 124.4% |
Here we highlight a subset of our preferred stocks from the screener.
adidas (XTRA:ADS)
Simply Wall St Growth Rating: ★★★★★☆
Overview: adidas AG, along with its subsidiaries, is involved in the design, development, production, and marketing of athletic and sports lifestyle products across various regions including Europe, the Middle East, Africa, North America, Greater China, Asia-Pacific, and Latin America; it has a market cap of approximately €42.80 billion.
Operations: The company's revenue segments include Greater China with €3.26 billion, Latin America at €2.39 billion, and North America generating €5.07 billion.
Insider Ownership: 16.6%
Earnings Growth Forecast: 41.8% p.a.
adidas AG has shown strong financial performance, with recent earnings revealing significant profit growth. The company reported a net income of €360 million for the first half of 2024, up from €45 million the previous year. Despite not having substantial insider trading activity in recent months, adidas's earnings are forecasted to grow significantly at 41.8% annually, outpacing the German market average. Revenue growth is expected to be robust yet moderate compared to its earnings trajectory.
- Click to explore a detailed breakdown of our findings in adidas' earnings growth report.
- According our valuation report, there's an indication that adidas' share price might be on the expensive side.
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 €2.94 billion.
Operations: The company generates revenue from two main segments: DACH, contributing €1.74 billion, and International, accounting for €391 million.
Insider Ownership: 17.4%
Earnings Growth Forecast: 54.3% p.a.
Redcare Pharmacy is experiencing strong revenue growth, forecasted at 17.5% annually, surpassing the German market's average. Despite recent shareholder dilution and significant insider selling over the past three months, the company raised its sales guidance for 2024 to between €2.35 billion and €2.5 billion, indicating positive business momentum. Earnings are expected to grow by 54.29% annually as Redcare moves towards profitability within three years, suggesting a potential above-market performance trajectory.
- Click here to discover the nuances of Redcare Pharmacy with our detailed analytical future growth report.
- The analysis detailed in our Redcare Pharmacy valuation report hints at an inflated share price compared to its estimated value.
Zalando (XTRA:ZAL)
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Zalando SE operates an online platform for fashion and lifestyle products with a market capitalization of approximately €7.84 billion.
Operations: The company's revenue segments include a Segment Adjustment of €10.49 billion.
Insider Ownership: 10.4%
Earnings Growth Forecast: 24.4% p.a.
Zalando is poised for significant earnings growth, expected to outpace the German market with a forecasted annual increase of 24.4%. Despite trading at 56.5% below its estimated fair value, its Return on Equity is projected to be modest at 12.8% in three years. Recent financials show robust performance, with Q2 net income rising to €95.7 million from €56.6 million year-on-year, reflecting strong operational execution amidst executive changes as CFO Dr. Sandra Dembeck plans her departure in early 2025.
- Dive into the specifics of Zalando here with our thorough growth forecast report.
- Our valuation report unveils the possibility Zalando's shares may be trading at a premium.
Taking Advantage
- Take a closer look at our Fast Growing German Companies With High Insider Ownership list of 22 companies by clicking here.
- Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
- Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage.
Ready To Venture Into Other Investment Styles?
- 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.
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About XTRA:ADS
adidas
Designs, develops, produces, and markets athletic and sports lifestyle products in Europe, the Middle East, Africa, North America, Greater China, the Asia-Pacific, and Latin America.
