Dutch Stock Market: Insider Confidence Fuels Growth Companies

Dutch Stock Market: Insider Confidence Fuels Growth Companies

The Euronext Amsterdam market continues to demonstrate resilience despite a mixed global economic landscape, with the pan-European STOXX Europe 600 Index closing slightly higher. Amidst this fluctuating market, savvy investors are seeking out growth companies with significant insider ownership, a signal of strong confidence from those closest to the business.

#

Top 5 Growth Companies With High Insider Ownership on Euronext Amsterdam

This analysis focuses on companies listed on Euronext Amsterdam with high insider ownership and notable earnings growth potential. The following table highlights five such companies, demonstrating their insider ownership percentages and projected earnings growth rates:

| Company Name | Insider Ownership | Earnings Growth |
|---------------------|-------------------|-----------------|
| BenevolentAI (ENXTAM:BAI) | 27.8% | 62.8% |
| Ebusco Holding (ENXTAM:EBUS) | 33.2% | 113.8% |
| Envipco Holding (ENXTAM:ENVI) | 36.7% | 68.9% |
| Basic-Fit (ENXTAM:BFIT) | 12% | 78.3% |
| MotorK (ENXTAM:MTRK) | 35.8% | 108.4% |
| PostNL (ENXTAM:PNL) | 35.8% | 23.9% |

For a comprehensive list of six companies identified by our Fast Growing Euronext Amsterdam Companies with High Insider Ownership screener, click here: [link to full list].

#

A Closer Look at Notable Companies:

Basic-Fit (ENXTAM:BFIT)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Basic-Fit N.V., with a market capitalisation of €1.45 billion, operates fitness clubs through its subsidiaries across the Benelux region, France, Spain, and Germany.

Operations: Revenue primarily stems from its fitness clubs in the Benelux region (€505.17 million) and in France, Spain, and Germany (€626.41 million).

Insider Ownership: 12%

Revenue Growth Forecast: 15.1% p.a.

Basic-Fit N.V. has demonstrated robust revenue growth, reporting €584.76 million for the first half of 2024 compared to €500.42 million in the same period the previous year. Notably, the company transformed a net loss into a net income of €4.18 million. Forecasts suggest earnings will grow significantly by 78.3% annually over the next three years, outpacing the Dutch market's average growth rate of 18.9%. Despite volatility in share price and concerns regarding interest payments being insufficiently covered by earnings, recent insider buying activity surpasses selling, signifying confidence in future performance.

Envipco Holding (ENXTAM:ENVI)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Envipco Holding N.V., with a market cap of €340.37 million, is a leading provider of reverse vending machines for used beverage containers, operating in the Netherlands, North America, and Europe.

Operations: Envipco generates revenue through the design, development, manufacturing, marketing, sales, leasing, and servicing of reverse vending machines for collecting and processing used beverage containers across its markets.

Insider Ownership: 36.7%

Revenue Growth Forecast: 33.3% p.a.

Envipco Holding's revenue is projected to grow at a substantial 33.3% annually, significantly exceeding the Dutch market's average growth rate of 10%. The company achieved €27.44 million in sales for Q1 2024, marking a significant increase from €10.41 million a year prior, and transitioned from a net loss to a net income of €0.147 million. Despite recent share price fluctuations and past shareholder dilution, insider buying activity has outpaced selling in the last three months, indicating strong belief in future growth prospects.

MotorK (ENXTAM:MTRK)

Simply Wall St Growth Rating: ★★★★★☆

Overview: MotorK plc, with a market cap of €271.71 million, supplies software-as-a-service solutions for the automotive retail industry across Italy, Spain, France, Germany, and the Benelux Union.

Operations: Revenue is generated primarily through software and programming, accounting for €42.50 million.

Insider Ownership: 35.8%

Revenue Growth Forecast: 22.1% p.a.

MotorK plc, a growth company with a high level of insider ownership in the Netherlands, reported half-year sales of €21.46 million and a reduced net loss of €6.48 million compared to the previous year. The company is expected to achieve a 22.1% annual revenue growth rate, surpassing the Dutch market's average growth rate. While past shareholder dilution and a lack of recent insider trading activity have been observed, MotorK is projected to achieve profitability within three years under the leadership of the newly appointed CFO Zoltan Gelencser.

#

Conclusion:

The companies discussed above offer a compelling selection of growth opportunities within the Euronext Amsterdam market. Their strong insider ownership combined with impressive earnings growth potential provide investors with a valuable insight into promising businesses that have gained the confidence of those closest to their operations. However, it is crucial to conduct thorough research and consult with a financial advisor before making any investment decisions.

Disclaimer: This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock and does not take into account individual objectives or financial situations. The analysis relies solely on historical data and analyst forecasts, employing an unbiased methodology. It does not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St holds no position in any stocks mentioned. The analysis only considers stock directly held by insiders and excludes indirectly owned stock through other vehicles such as corporate and/or trust entities. All forecast revenue and earnings growth rates are quoted in terms of annualised (per annum) growth rates over 1-3 years.

Companies discussed in this article include ENXTAM:BFIT, ENXTAM:ENVI, and ENXTAM:MTRK.