July 2024 Spotlight On German Exchange Growth Companies With High Insider Ownership (2024)

Amid a backdrop of generally positive momentum across global markets, with Germany's DAX index showing a notable gain of 1.48% last week, investors are keenly observing trends and strategic opportunities within the German market. In this context, growth companies with high insider ownership stand out as particularly intriguing, as they often signal strong confidence in the company's future from those who know it best.

Top 10 Growth Companies With High Insider Ownership In Germany

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

Let's review some notable picks from our screened stocks.

Brockhaus Technologies

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Brockhaus Technologies AG operates as a private equity firm with a market capitalization of approximately €316.56 million.

Operations: The firm generates revenue primarily through its Security Technologies and Financial Technologies segments, totaling €39.43 million and €153.43 million respectively.

Insider Ownership: 26.6%

Brockhaus Technologies, trading significantly below its estimated fair value, is poised for substantial growth with revenue expected to increase by 17.8% annually, outpacing the German market's 5.2%. Despite a current lack of profitability, the company is forecasted to shift into profit within three years, supported by an anticipated earnings growth of 74.21% per year. However, its projected Return on Equity is modest at 10.3%. Recent financials show a first-quarter revenue rise to €39.97 million from €33.89 million year-over-year but also an increased net loss of €1.38 million.

• Click here and access our complete growth analysis report to understand the dynamics of Brockhaus Technologies.

• The analysis detailed in our Brockhaus Technologies valuation report hints at an deflated share price compared to its estimated value.

Hypoport

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Hypoport SE is a technology-based financial service provider operating in Germany, with a market capitalization of approximately €2.09 billion.

Operations: The company's revenue is generated through its Credit Platform and Insurance Platform, which respectively brought in €155.60 million and €66.29 million.

Insider Ownership: 35.1%

Hypoport SE, a growth company with substantial insider ownership, has demonstrated robust financial performance with first-quarter sales rising to €107.47 million from €93.72 million year-over-year and net income increasing significantly to €3.04 million from €0.503 million. Despite a forecasted low return on equity of 9.2% in three years, earnings are expected to grow by 31.89% annually, outstripping the German market's 18.9%. However, large one-off items have impacted recent results, suggesting some earnings quality concerns.

• Unlock comprehensive insights into our analysis of Hypoport stock in this growth report.

• In light of our recent valuation report, it seems possible that Hypoport is trading beyond its estimated value.

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 €6.19 billion.

Operations: The company generates €10.40 billion in revenue from its online fashion and lifestyle platform.

Insider Ownership: 10.4%

Zalando SE, a German growth company with high insider ownership, is trading at 51.9% below its estimated fair value, highlighting potential undervaluation. Despite slower expected revenue growth at 5.4% annually compared to the market's 5.2%, its earnings are projected to increase by 26.44% annually over the next three years, outpacing the German market's forecast of 18.9%. However, its anticipated return on equity is low at 12.6%, suggesting challenges in generating shareholder value efficiently.

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

• According our valuation report, there's an indication that Zalando's share price might be on the expensive side.

Taking Advantage

• Explore the 18 names from our Fast Growing German Companies With High Insider Ownership screener here.

• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.

• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

Curious About Other Options?

• 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:BKHT XTRA:HYQ and XTRA:ZAL.

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