Germany’s DAX index has posted impressive gains of late, driven by better-than-expected corporate profits and a positive economic outlook. In this active market environment, identifying growing companies with high insider ownership can be especially valuable. This is because these companies often exhibit strong alignment between management and shareholder interests. In the current climate, blue-chip stocks feature solid growth potential and significant insider ownership that signals trust from those who know the company best. This article highlights three German growth companies that stand out on the market today.
See top 3 German growing companies with high insider ownership:
Nagarro
- Simply Wall St Growth Rating: ★★★★☆
- Overview: Nagarro SE has a market capitalization of €1.2 billion and is a digital product development and technology solutions company with markets in North America, Central Europe, Rest of Europe, and Rest of World. We offer Other countries as well internationally.
- Operations: Our revenue segments include digital product development and technology solutions in North America, Central Europe, the rest of Europe and internationally.
- Insider ownership: 12.3 million.
- Growth Forecast: 17.9% p.a.
Nagaro, a growing company with a high insider share in Germany, is expected to increase its profit by 17.89% p.a., growing faster than the German market. However, its profit margin has fallen from 8.7% to 5.8%, and the stock price has been very volatile over the past three months. Despite its market price being 36.5% below its estimated fair value and its high debt burden, Nagaro’s earnings are expected to grow faster than the market at 12.3% annually.
Ströer SE KGaA
- Simply Wall St Growth rate: ★★★★★☆
- Overview: Ströer SE & Co. KGaA provides outdoor media and online advertising solutions in Germany and around the world, with a market capitalization of €3.64 billion.
- Business: The company’s revenue segments include Daas & E-Commerce (€355.06 million), Outdoor Media (€881.1 million), and Digital and Interactive Media (€839.39 million).
- Insider ownership: 20 million.
- Growth forecast: 31.8% per annum
Ströer SE KGaA is a growing company in Germany with significant insider ownership, with first quarter sales of 453.4 million euros compared to 409.9 million euros in the same period last year. Net profit was reported at 6 million euros. Up to 3.4 million euros. Although profit margins have fallen from 7.4% to 4.9%, strong annual profit growth of 31.83% is expected, which is higher than the German market’s growth rate of 17.9%. The company has high debt levels and trades at a significant discount to its estimated fair value, despite recent share buybacks totaling €50 million for 1.92% of its equity.
Zalando
- Simply Wall St Growth Rating: ★★★★☆
- Overview: Zalando SE operates an online platform for fashion and lifestyle products with a market capitalization of approximately EUR 6.52 billion.
- Business activities: Zalando SE is an online platform mainly for fashion and lifestyle products that generates sales of 10.4 billion euros.
- Insider ownership: 10.3 million euros per year Growth forecast: 27% per year
Zalando, a growing company with high insider ownership in Germany, has sales of 2.24 billion euros and a net loss of 8.9 million in the first quarter of 2024. Reported the euro. Despite recent volatility and fair value estimates of 46.9%, Zalando’s earnings are expected to grow by a strong 27% annually, outpacing the German market’s growth rate of 17.9%. However, return on equity is expected to remain low at 12.4% over the next three years.
