German Growth Stocks With High Insider Ownership To Watch

Simply Wall St · 10/15 11:33

As the German economy faces a projected contraction in 2024, with factory orders experiencing a significant decline, investors are closely monitoring sectors that could offer resilience and growth potential. In this context, growth companies with high insider ownership can be particularly appealing as they often indicate strong 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%
R. STAHL (XTRA:RSL2) 37.9% 59.3%
Friedrich Vorwerk Group (XTRA:VH2) 18.8% 24.6%
Redcare Pharmacy (XTRA:RDC) 17.4% 54.3%
elumeo (XTRA:ELB) 25.8% 123.5%

Click here to see the full list of 20 stocks from our Fast Growing German Companies With High Insider Ownership screener.

We'll examine a selection from our screener results.

Brockhaus Technologies (XTRA:BKHT)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Brockhaus Technologies AG is a private equity firm with a market cap of €290.45 million.

Operations: The company's revenue is primarily derived from its Security Technologies segment, which generated €37.03 million, and its Financial Technologies segment, which contributed €174.59 million.

Insider Ownership: 26.6%

Earnings Growth Forecast: 93% p.a.

Brockhaus Technologies is positioned for growth with forecasted revenue expansion of 16.8% annually, outpacing the German market's 5.5%. Despite trading significantly below its estimated fair value, profitability is expected within three years—an above-average market growth rate. Recent earnings guidance confirms robust revenue targets of €220 million to €240 million for 2024 and up to €320 million in 2025, although current net losses highlight ongoing challenges in achieving profitability.

XTRA:BKHT Ownership Breakdown as at Oct 2024
XTRA:BKHT 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 €2.92 billion.

Operations: The company generates its revenue from two main segments: DACH, contributing €1.74 billion, and International, contributing €391 million.

Insider Ownership: 17.4%

Earnings Growth Forecast: 54.3% p.a.

Redcare Pharmacy is poised for growth with an annual revenue forecast of 17.5%, surpassing the German market's average. The company recently raised its 2024 sales guidance to €2.35 billion-€2.5 billion, reflecting confidence in exceeding initial expectations. Although trading significantly below fair value and aiming for profitability within three years, insider activity shows more substantial selling than buying over the past quarter, indicating potential caution among insiders despite promising revenue prospects.

XTRA:RDC Ownership Breakdown as at Oct 2024
XTRA:RDC Ownership Breakdown as at Oct 2024

Friedrich Vorwerk Group (XTRA:VH2)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Friedrich Vorwerk Group SE offers solutions for energy transformation and transportation across Germany and Europe, with a market cap of €513 million.

Operations: The company generates revenue from several segments, including €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: 18.8%

Earnings Growth Forecast: 24.6% p.a.

Friedrich Vorwerk Group shows promising growth potential, with earnings projected to rise 24.63% annually, outpacing the German market's 20%. Recent results highlight substantial performance improvements: Q2 revenue increased to €121.04 million from €96.41 million year-on-year, and net income rose significantly. The company updated its 2024 revenue guidance to exceed €410 million, indicating over 10% growth from 2023. Despite strong earnings prospects, insider trading data for recent months is unavailable for further insights into insider sentiment.

XTRA:VH2 Earnings and Revenue Growth as at Oct 2024
XTRA:VH2 Earnings and Revenue Growth 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.