As the German market navigates through a period of cautious investor sentiment due to escalating Middle East tensions, the DAX index has mirrored this unease with a notable decline. Amidst this backdrop, identifying growth companies with high insider ownership can be particularly appealing, as such stocks often suggest confidence from those closest to the company and may offer resilience in uncertain times.
Top 10 Growth Companies With High Insider Ownership In Germany
Overview: Brockhaus Technologies AG is a private equity firm with a market cap of €297.76 million.
Operations: The company's revenue is primarily generated from its Security Technologies segment, contributing €37.03 million, and its Financial Technologies segment, which accounts for €174.59 million.
Insider Ownership: 26.6%
Brockhaus Technologies has a significant insider ownership structure, aligning management's interests with shareholders. Despite no recent insider trading activity, the company is forecast to become profitable within three years, showing above-average market growth potential. Although its revenue growth of 16.8% annually is below 20%, it surpasses the German market average. Recent earnings guidance confirmed expected revenues between €220 million and €240 million for 2024 and up to €320 million for 2025, despite current net losses.
Overview: Redcare Pharmacy NV operates as an online pharmacy across the Netherlands, Germany, Italy, Belgium, Switzerland, Austria, and France with a market cap of €2.79 billion.
Operations: The company's revenue is primarily generated from the DACH region with €1.74 billion and internationally with €391 million.
Insider Ownership: 17.4%
Redcare Pharmacy has seen substantial insider buying, indicating confidence in its growth trajectory. The company recently raised its 2024 sales guidance to between €2.35 billion and €2.5 billion, reflecting strong performance with half-year sales reaching €1.12 billion, up from €791.94 million the previous year. Despite a net loss of €12.07 million for the same period, Redcare is forecasted to achieve profitability within three years, outpacing average market growth rates in Germany.
Overview: Zalando SE operates an online platform for fashion and lifestyle products with a market capitalization of approximately €7.61 billion.
Operations: The company's revenue segments include a Segment Adjustment of €10.49 billion.
Insider Ownership: 10.4%
Zalando's earnings are forecast to grow significantly at 24.8% annually, surpassing the German market average. Despite a lower projected Return on Equity of 12.7%, the stock is trading at nearly half its estimated fair value, suggesting potential undervaluation. Recent earnings reports show strong performance with net income rising to €95.7 million in Q2 2024 from €56.6 million a year ago, though revenue growth remains modest at 5.6% annually compared to market expectations.
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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:BKHT XTRA:RDC and XTRA:ZAL.
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