3 Growth Companies With High Insider Ownership On German Exchange Expecting Up To 93% Growth

The European stock markets have shown optimism recently, with Germany's DAX index gaining 1.70% amid hopes for interest rate cuts by the ECB. Despite a weakening German economy and slow recovery, certain growth companies with high insider ownership are positioned to potentially benefit from these market conditions. In this context, stocks with strong insider ownership often signal confidence from those closest to the company's operations and can be particularly compelling when combined with growth potential. Here are three such companies on the German exchange expecting up to 93% growth.

Top 10 Growth Companies With High Insider Ownership In Germany

Name	Insider Ownership	Earnings Growth
pferdewetten.de (XTRA:EMH)	26.8%	70.6%
Stemmer Imaging (XTRA:S9I)	25%	23.2%
Deutsche Beteiligungs (XTRA:DBAN)	39.5%	63.5%
Exasol (XTRA:EXL)	25.3%	117.1%
NAGA Group (XTRA:N4G)	14.1%	78.3%
Alelion Energy Systems (DB:2FZ)	37.4%	106.6%
Stratec (XTRA:SBS)	30.9%	20.1%
Beyond Frames Entertainment (DB:8WP)	10.8%	112.2%
Friedrich Vorwerk Group (XTRA:VH2)	18%	24.5%
Redcare Pharmacy (XTRA:RDC)	17.7%	50.1%

Click here to see the full list of 22 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.

Brockhaus Technologies (XTRA:BKHT)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Brockhaus Technologies AG is a private equity firm with a market cap of €298.80 million.

Operations: The company's revenue segments are primarily composed of €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 is forecast to become profitable within the next 3 years, exceeding average market growth. Despite lower revenue growth projections (16.8% annually) compared to some high-growth peers, it outpaces the broader German market (5.2%). Trading significantly below its estimated fair value, Brockhaus reported H1 2024 sales of €109.43 million and a net loss of €6.65 million, with confirmed revenue guidance for 2024 and 2025 between €220-240 million and €290-320 million respectively.

• Delve into the full analysis future growth report here for a deeper understanding of Brockhaus Technologies.
• Our valuation report unveils the possibility Brockhaus Technologies' shares may be trading at a discount.

Hypoport (XTRA:HYQ)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Hypoport SE develops and markets technology platforms for the financial services, property, and insurance industries in Germany, with a market cap of €1.75 billion.

Operations: The company's revenue segments include €157.97 million from the Credit Platform, €66.89 million from the Insurance Platform, and €175.87 million from Segment Adjustment.

Insider Ownership: 35%

Earnings Growth Forecast: 35% p.a.

Hypoport SE, with substantial insider ownership, has shown strong growth potential. The company reported Q2 2024 sales of €110.62 million, up from €85.29 million a year ago, and net income of €2.4 million compared to a loss previously. Analysts forecast earnings to grow 35% annually over the next three years, outpacing the German market's 19.8%. However, it's worth noting that Hypoport's Return on Equity is expected to remain low at 10.3%.

• Navigate through the intricacies of Hypoport with our comprehensive analyst estimates report here.
• Our valuation report here indicates Hypoport may be overvalued.

Friedrich Vorwerk Group (XTRA:VH2)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Friedrich Vorwerk Group SE offers solutions for the transformation and transportation of energy in Germany and Europe, with a market cap of €455 million.

Operations: The company's revenue segments include €95.30 million from Electricity, €160.89 million from Natural Gas, €28.38 million from Clean Hydrogen, and €117.28 million from Adjacent Opportunities.

Insider Ownership: 18%

Earnings Growth Forecast: 24.5% p.a.

Friedrich Vorwerk Group SE, characterized by high insider ownership, has demonstrated significant growth. The company reported Q2 2024 sales of €117.41 million and net income of €7.96 million, both up substantially from the previous year. Analysts forecast annual earnings growth of 24.5%, outpacing the German market's 19.8%. Despite this strong performance, revenue is expected to grow at a slower rate of 9.2% annually and Return on Equity is projected to be low at 11.9%.

• Click here to discover the nuances of Friedrich Vorwerk Group with our detailed analytical future growth report.
• The analysis detailed in our Friedrich Vorwerk Group valuation report hints at an inflated share price compared to its estimated value.

Next Steps

• Embark on your investment journey to our 22 Fast Growing German Companies With High Insider Ownership selection here.
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Seeking Other Investments?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
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• 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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