German growth companies with high insider ownership to watch

As geopolitical tensions in the Middle East have led to cautious sentiment in European markets, the German DAX index recently recorded a decline of 1.81%. Despite these challenges, growth companies with high insider ownership can offer unique insights and potential resilience to volatile market conditions. Investors often view significant insider ownership as a positive indicator, suggesting that those closest to the company are confident in its future prospects.

Top 10 growth companies with high insider ownership in Germany

Click here to see the full list of 19 stocks from our Fast-Growing German Companies with High Insider Ownership screener.

Below we present a selection of the stocks filtered out from our screen.

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Brockhaus Technologies AG is a private equity company with a market capitalization of 284.18 million euros.

Operations: The company generates revenues in its Security Technologies segment, which contributes 37.03 million euros, and in its Financial Technologies segment, which contributes 174.59 million euros.

Insider Ownership: 26.6%

Brockhaus Technologies is experiencing significant growth, with profits expected to grow 93% annually and profitability expected within three years. Despite a net loss of 6.65 million euros in the first half of 2024, sales rose year-on-year from 84.64 million euros to 109.49 million euros. The company is trading well below its estimated fair value and forecasts sales of between 220 and 240 million euros for 2024, rising to 290 to 320 million euros in 2025, thus exceeding the growth rate of the German market.

Simply Wall St Growth Rating: ★★★★★☆

Overview: Stemmer Imaging AG offers image processing technology for various industrial and non-industrial applications worldwide with a market capitalization of 315.90 million euros.

Operations: The company’s revenue comes primarily from the image processing technology segment, which generated 126.23 million euros.

Insider Ownership: 25%

Stemmer Imaging is undergoing a transformation phase with MiddleGround Capital’s takeover offer at €48 per share, a significant premium to recent prices. Despite volatile share price performance and declining recent earnings, the company’s revenue is expected to grow 13.3% annually, growing faster than the broader German market. Earnings are expected to grow significantly at 23.2% per year over three years and shares are expected to trade below their estimated fair value, reflecting potential growth prospects with insider ownership stability.

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Simply Wall St Growth Rating: ★★★★☆☆

Overview: Friedrich Vorwerk Group SE offers solutions for the transformation and transport of energy in Germany and Europe with a market capitalization of 488 million euros.

Operations: The Company’s revenue comes primarily from the Natural Gas (€160.89 million), Adjacent Opportunities (€117.28 million), Electricity (€95.30 million) and Clean Hydrogen (€28.38 million) segments. .

Insider Ownership: 18.8%

The Friedrich Vorwerk Group has promising growth prospects: its profit is expected to increase by 24.6% annually, exceeding the 20.2% of the German market. The latest earnings results show significant improvements, including an increase in net profit to €7.96 million for the second quarter of 2024 from €2.38 million last year. The company forecasts revenue of over €410 million for fiscal year 2024, representing at least 10% year-on-year growth and underscoring its robust performance with stable insider ownership numbers.

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This article from Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only an unbiased methodology and our articles are not intended as financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term focused analysis based on fundamental data. Note that our analysis may not reflect the latest price-sensitive company announcements or qualitative material. Simply Wall St has no positions in any stocks mentioned. The analysis only considers stocks that are directly owned by insiders. It does not include shares held indirectly through other vehicles such as corporate and/or trust companies. All forecast sales and profit growth rates shown are annualized (per year) growth rates over 1-3 years.

Companies covered in this article include XTRA:BKHT, XTRA:S9I and XTRA:VH2.

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