July 2024 Insight Into German Exchange's Top Growth Companies With High Insider Ownership

As global markets respond positively to subdued inflation figures, the German market has shown resilience, reflected by a 1.48% gain in the DAX index. This environment sets an intriguing stage for examining growth companies within Germany that boast high insider ownership—a factor often linked to strong governance and aligned interests between shareholders and management. High insider ownership can be particularly compelling in current market conditions, as it may signal confidence from those who know the company best.

Top 10 Growth Companies With High Insider Ownership In Germany

Name	Insider Ownership	Earnings Growth
pferdewetten.de (XTRA:EMH)	26.8%	75.4%
Deutsche Beteiligungs (XTRA:DBAN)	39.1%	34.7%
YOC (XTRA:YOC)	24.8%	21.8%
NAGA Group (XTRA:N4G)	14.1%	74.7%
Exasol (XTRA:EXL)	25.3%	105.4%
Alelion Energy Systems (DB:2FZ)	37.4%	106.6%
elumeo (XTRA:ELB)	25.8%	99.1%
Redcare Pharmacy (XTRA:RDC)	17.7%	47.4%
Your Family Entertainment (DB:RTV)	17.5%	116.8%
Friedrich Vorwerk Group (XTRA:VH2)	18%	30.4%

Click here to see the full list of 18 stocks from our Fast Growing German Companies With High Insider Ownership screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Hypoport

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Hypoport SE is a technology-based financial service provider in Germany, with a market capitalization of approximately €2.15 billion.

Operations: The company generates its revenue primarily through two segments: the Credit Platform, which brought in €155.60 million, and the Insurance Platform, with revenues of €66.29 million.

Insider Ownership: 35.1%

Earnings Growth Forecast: 31.9% p.a.

Hypoport SE, a notable German company with high insider ownership, demonstrates robust growth prospects. Recently reported first-quarter earnings show a significant increase to €3.04 million from €0.503 million year-over-year, with sales rising to €107.47 million. Forecasted annual revenue and earnings growth are expected to outpace the German market significantly, although its return on equity is projected to remain modest at 9.2%. Despite large one-off items impacting results, the company's strong performance and strategic presentations at key conferences highlight its potential in a competitive landscape.

• Dive into the specifics of Hypoport here with our thorough growth forecast report.

• Upon reviewing our latest valuation report, Hypoport's share price might be too optimistic.

XTRA:HYQ Earnings and Revenue Growth as at Jul 2024

Redcare Pharmacy

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Redcare Pharmacy NV is an online pharmacy operating across the Netherlands, Germany, Italy, Belgium, Switzerland, Austria, and France with a market capitalization of €2.83 billion.

Operations: The company generates €1.62 billion from its DACH segment and €0.37 billion internationally.

Insider Ownership: 17.7%

Earnings Growth Forecast: 47.4% p.a.

Redcare Pharmacy, despite a highly volatile share price, reported improved first-quarter earnings with sales increasing to €560.22 million from €372.05 million year-over-year and a reduced net loss of €7.81 million. Expected to become profitable within three years, the company's revenue growth at 17.1% annually is above the German market average but below 20%. Earnings are forecasted to grow significantly by 47.38% per year, although shareholder dilution occurred over the past year and return on equity is anticipated to be low at 7.5%.

• Take a closer look at Redcare Pharmacy's potential here in our earnings growth report.

• The analysis detailed in our Redcare Pharmacy valuation report hints at an inflated share price compared to its estimated value.

XTRA:RDC Ownership Breakdown as at Jul 2024

Zalando

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Zalando SE is an online retailer specializing in fashion and lifestyle products, with a market capitalization of approximately €6.23 billion.

Operations: The company generates €10.40 billion from its primary operations in the online fashion and lifestyle market.

Insider Ownership: 10.4%

Earnings Growth Forecast: 26.4% p.a.

Zalando SE, a key player in the German market, is trading at €51.9% below its estimated fair value, highlighting potential undervaluation. Despite a modest revenue growth forecast of 5.4% annually—slightly above the market average—the company's earnings are expected to surge by 26.44% per year over the next three years. Recent guidance confirms these growth expectations, although return on equity remains low at 12.6%. The company has actively participated in several international conferences, underscoring its strategic outreach and operational focus.

• Delve into the full analysis future growth report here for a deeper understanding of Zalando.

• Insights from our recent valuation report point to the potential overvaluation of Zalando shares in the market.

XTRA:ZAL Earnings and Revenue Growth as at Jul 2024

Where To Now?

• Navigate through the entire inventory of 18 Fast Growing German Companies With High Insider Ownership here.

• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.

• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Seeking Other Investments?

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

• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.

• 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.

Companies discussed in this article include XTRA:HYQ XTRA:RDC and XTRA:ZAL.

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