Germany’s DAX Index has seen a significant surge of 4.03%, reflecting a broader rebound in European markets driven by hopes for interest rate cuts and positive sentiment from China’s economic stimulus measures. This environment presents an opportune moment to explore growth companies with high insider ownership, as these stocks often indicate strong internal confidence and potential for robust earnings growth. In the current market landscape, stocks with high insider ownership can be particularly attractive due to the alignment of interests between company executives and shareholders. This alignment is crucial when evaluating companies that are not only growing their earnings but also demonstrating strong internal commitment to their business strategies.
Top 10 Growth Companies With High Insider Ownership In Germany
Overview: adidas AG, with a market cap of €41.57 billion, designs, develops, produces, and markets athletic and sports lifestyle products across Europe, the Middle East, Africa, North America, Greater China, the Asia-Pacific region and Latin America.
Operations: The company's revenue segments are as follows: €3.26 billion from Greater China, €2.39 billion from Latin America, and €5.07 billion from North America, with a segment adjustment of €11.29 billion.
Insider Ownership: 16.6%
Earnings Growth Forecast: 41.8% p.a.
adidas, with high insider ownership, is forecast to grow earnings by 41.85% annually over the next three years, significantly outpacing the German market's 20%. The company recently reported strong Q2 2024 results with sales of €5.82 billion and net income of €190 million. Despite trading at a slight discount to its fair value, adidas expects currency-neutral revenues to increase at a high-single-digit rate in 2024 and operating profit around €1 billion.
Overview: Redcare Pharmacy NV operates an online pharmacy business across the Netherlands, Germany, Italy, Belgium, Switzerland, Austria, and France with a market cap of €2.74 billion.
Operations: Revenue segments are divided into DACH, contributing €1.74 billion, and International, generating €391 million.
Insider Ownership: 17.4%
Earnings Growth Forecast: 51.8% p.a.
Redcare Pharmacy, with substantial insider ownership, is expected to grow earnings by 51.83% annually and become profitable within three years. Despite recent volatility and significant insider selling over the past three months, RDC's revenue is forecast to grow at 17.1% per year, outpacing the German market average of 5.4%. The company reported H1 2024 sales of €1.12 billion and a net loss of €12.07 million, showing improvement from the previous year’s loss of €14.78 million.
Overview: Zalando SE operates an online platform for fashion and lifestyle products with a market cap of €7.45 billion.
Operations: Zalando SE generates revenue of €10.49 billion from its online platform for fashion and lifestyle products.
Insider Ownership: 10.4%
Earnings Growth Forecast: 25% p.a.
Zalando, with substantial insider ownership, has seen earnings grow by 84.3% over the past year and is trading at 50.5% below its estimated fair value. Despite a forecasted revenue growth of only 5.6% per year, its earnings are expected to grow significantly at 24.96% annually over the next three years, outpacing the German market's average. Recent executive changes include CFO Dr. Sandra Dembeck's departure in early 2025 for a new career opportunity.
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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.
Companies discussed in this article include XTRA:ADS XTRA:RDC and XTRA:ZAL.
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