The most promising German growth companies on the stock exchange: Atoss Software and Aixtron

The most promising German growth companies on the stock exchange: Atoss Software and Aixtron

According to a report by www.aktienwelt360.de,

The German stock market is not necessarily known as a preferred terrain for growth investors. Nevertheless, there are always promising companies that are worth discovering. Two particularly promising German growth companies on the stock market are Atoss Software (WKN: 510440) and Aixtron (WKN: A0WMPJ). Both companies are characterized by strong growth, profitable business models and intact growth drivers.

Atoss Software is a leading provider of workforce management solutions in the D-A-CH region. The company has had record sales for 17 years and has average annual sales growth of 14%. With an EBIT margin of 27% and sales growth of 35% in the first three quarters of 2023, Atoss Software is showing impressive momentum. The high demand for efficient workforce management and flexible software solutions offers the prospect of further growth potential, especially abroad.

Aixtron is a pioneer in the semiconductor industry, providing advanced solutions for microelectronics manufacturing. The company is experiencing explosive growth, with revenue jumping 86% in Q3 2023 and EBIT increasing 180%. Increasing demand for high-performance electronic components is driving Aixtron's growth, particularly demand for material systems such as gallium nitride (GaN) and silicon carbide (SiC).

Both companies have the potential to successfully expand on both the German and international markets in the coming years. However, the valuations of the stocks should be taken into account, as Atoss Software's P/E ratio is 63 and Aixtron's is 26 (as of 11/25/23, Morningstar). These valuations could deter potential investors.

Overall, Atoss Software and Aixtron show clear potential as promising growth stocks, but potential investors should carefully consider the valuations and growth potential before investing.