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3 German Growth Stocks With High Insider Ownership Expecting Up To 50% Earnings Growth

As European markets continue to rally with Germany's DAX reaching new peaks, investors are increasingly looking for growth opportunities amid a backdrop of slowing inflation and cautious optimism from the ECB. In this environment, stocks with high insider ownership can be particularly appealing, as they often indicate strong confidence from those closest to the company's operations. When evaluating potential investments, it's essential to consider companies that not only exhibit robust growth prospects but also have significant insider ownership. This combination can signal alignment between management and shareholder interests, potentially leading to better performance in a thriving market.

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)

25.1%

23.2%

Deutsche Beteiligungs (XTRA:DBAN)

39.5%

54.1%

Exasol (XTRA:EXL)

25.3%

117.1%

adidas (XTRA:ADS)

16.6%

40.7%

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%

R. STAHL (XTRA:RSL2)

37.9%

59.3%

Your Family Entertainment (DB:RTV)

17.5%

116.8%

Click here to see the full list of 23 stocks from our Fast Growing German Companies With High Insider Ownership screener.

Here's a peek at a few of the choices from the screener.

adidas

Simply Wall St Growth Rating: ★★★★★☆

Overview: adidas AG, with a market cap of €41.07 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 include €3.26 billion from Greater China, €2.39 billion from Latin America, and €5.07 billion from North America.

Insider Ownership: 16.6%

Earnings Growth Forecast: 40.7% p.a.

adidas AG has shown strong growth potential with earnings expected to grow significantly at 40.68% per year, outpacing the German market. Despite trading 17.3% below its fair value estimate, its revenue growth forecast of 8.4% per year is slower than the desired 20%. Recent financial results highlight a substantial increase in net income and earnings per share compared to last year, and revised guidance projects operating profit around €1 billion for 2024 despite unfavorable currency effects.

XTRA:ADS Earnings and Revenue Growth as at Sep 2024
XTRA:ADS Earnings and Revenue Growth as at Sep 2024

Redcare Pharmacy

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 €2.46 billion.

Operations: The company's revenue segments consist of €1.74 billion from the DACH region and €391 million from International markets.

Insider Ownership: 17.7%

Earnings Growth Forecast: 50.1% p.a.

Redcare Pharmacy is forecast to become profitable within the next 3 years, with revenue growth expected at 17.1% per year, outpacing the German market. Despite recent dilution and a volatile share price, insiders have bought more shares than sold in the past 3 months. Trading at 69.2% below its estimated fair value, Redcare reported half-year sales of €1.12 billion and reduced net loss to €12.07 million compared to last year’s figures.

XTRA:RDC Earnings and Revenue Growth as at Sep 2024
XTRA:RDC Earnings and Revenue Growth as at Sep 2024

Friedrich Vorwerk Group

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Friedrich Vorwerk Group SE offers solutions for the transformation and transportation of energy across Germany and Europe, with a market cap of €453 million.

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

Insider Ownership: 18%

Earnings Growth Forecast: 24.6% p.a.

Friedrich Vorwerk Group SE has shown robust growth, with second-quarter revenue rising to €121.04 million and net income increasing to €7.96 million. The company updated its 2024 guidance, expecting over €410 million in revenue, reflecting at least 10% growth from 2023. Despite a price-to-earnings ratio of 27.4x being slightly below the industry average, earnings are forecasted to grow significantly at 24.63% per year, surpassing the German market's expectations.

XTRA:VH2 Earnings and Revenue Growth as at Sep 2024
XTRA:VH2 Earnings and Revenue Growth as at Sep 2024

Turning Ideas Into Actions

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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:VH2.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com