Stock Analysis

German Growth Stocks With High Insider Ownership

Published October 14, 2024

As the German economy faces a forecasted contraction in 2024, recent data highlights challenges such as declining factory orders, though industrial production has shown some resilience. In this climate, growth companies with high insider ownership can present intriguing opportunities for investors seeking alignment between management and shareholder interests.

Top 10 Growth Companies With High Insider Ownership In Germany

Name	Insider Ownership	Earnings Growth
Stemmer Imaging (XTRA:S9I)	25%	23.2%
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%
Redcare Pharmacy (XTRA:RDC)	17.4%	54.3%
Your Family Entertainment (DB:RTV)	17.3%	124.4%

Click here to see the full list of 21 stocks from our Fast Growing German Companies With High Insider Ownership screener.

Let's uncover some gems from our specialized screener.

Brockhaus Technologies (XTRA:BKHT)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Brockhaus Technologies AG is a private equity firm with a market cap of €291.49 million.

Operations: The company's revenue segments include €37.03 million from Security Technologies and €174.59 million from Financial Technologies.

Insider Ownership: 26.6%

Earnings Growth Forecast: 93% p.a.

Brockhaus Technologies demonstrates significant growth potential with revenue expected to increase by 16.8% annually, outpacing the German market. Despite a current net loss of €6.65 million for H1 2024, profitability is anticipated within three years, exceeding average market growth rates. The company confirmed its revenue guidance for 2024 and 2025, targeting up to €320 million in 2025. Insider ownership remains substantial without recent insider trading activity reported over the past three months.

XTRA:BKHT Ownership Breakdown as at Oct 2024

Redcare Pharmacy (XTRA:RDC)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Redcare Pharmacy NV is an online pharmacy operating in the Netherlands, Germany, Italy, Belgium, Switzerland, Austria, and France with a market cap of €2.92 billion.

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

Insider Ownership: 17.4%

Earnings Growth Forecast: 54.3% p.a.

Redcare Pharmacy's revenue is projected to grow at 17.5% annually, surpassing the German market average. Despite a net loss of €12.07 million for H1 2024, profitability is expected within three years, indicating robust growth potential. The company recently raised its full-year sales guidance to between €2.35 billion and €2.5 billion for 2024, reflecting positive momentum despite past shareholder dilution and significant insider selling over the last quarter without substantial buying activity.

XTRA:RDC Earnings and Revenue Growth 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 €7.76 billion.

Operations: The company generates revenue from its online fashion and lifestyle platform, with segment adjustments amounting to €10.49 billion.

Insider Ownership: 10.4%

Earnings Growth Forecast: 24.4% p.a.

Zalando's earnings are forecast to grow at 24.4% annually, outpacing the German market average. Recent financial results show a significant profit increase, with net income rising to €95.7 million in Q2 2024 from €56.6 million the previous year. The stock trades significantly below its estimated fair value, suggesting potential undervaluation despite no substantial insider buying or selling activity recently. CFO Sandra Dembeck's upcoming departure may impact future strategic direction.

XTRA:ZAL Earnings and Revenue Growth as at Oct 2024

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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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