When discussing the German economy, most investors immediately think of the DAX blue chips. But to find the real drivers of growth, we look one tier down at the MDAX. These mid-caps are part of Germany's Mittelstand: companies that have moved well past their startup phase but still have plenty of room to grow. The index covers 50 companies with a wide range of industries, from industrial machinery and insurance to real estate and specialty chemicals.
We chose to feature the MDAX Top 10 this month, because the timing is hard to ignore. Germany's €500 billion infrastructure fund is now moving from planning to execution, with nearly €60 billion earmarked for this year alone. Because MDAX companies are far more exposed to the domestic economy than DAX firms (which earn about 80% of revenue abroad), they are positioned to benefit directly, as money flows into transport, digital networks, hospitals, and energy systems. Several investment banks project MDAX earnings growth of around 30% this year. This is notable, given how low these stocks are currently valued compared with the DAX. This month, we look beyond the usual large-cap stocks to one of the most interesting corners of the European market right now.
Because this sector is gaining momentum, selecting stocks from this index requires more than just looking at media attention and price charts. We provide a clear way to filter out the noise. Obermatt uses a purely data-driven 360° View to rank stocks against their industry peers across four financial and non-financial pillars: Value (pricing), Growth (expansion), Safety (debt levels), and Sentiment (market confidence). The Top 10 companies below might not include the most talked about stocks, but they certainly represent the hidden drivers behind the economy.
The 360° View is our all-rounder ranking, but different investors look for different things. That is why we also publish separate Top 10 lists for Value, Growth, Safety, Sentiment, and Dividends, updated monthly in the Obermatt app. A few crossovers caught our eye this month.
Freenet and LEG Immobilien, both on the 360° View list above, also rank among the top three MDAX Dividend stocks. When a company can sustain high payouts while scoring well across all four pillars, that is usually a sign of genuine operational quality rather than a yield that looks good on paper. On the growth side, the MDAX Growth Top 10 is led by Hochtief, the construction and infrastructure group, which fits the Sondervermögen theme well. Bilfinger and TAG Immobilien follow close behind, and the fact that both also appear on the 360° View list suggests their growth is backed by solid fundamentals, not just momentum. Meanwhile, Fuchs leads the Safety Top 10 with a rank of 98. The world's largest independent lubricant maker with a nearly debt-free balance sheet is exactly the kind of company that does not get much attention but tends to reward patient investors.
These Top 10 MDAX stocks according to the comprehensive 360° View may be worth your consideration.
Name | 360° View | Sentiment | Combined | Value | Growth | Safety |
|---|---|---|---|---|---|---|
1. Large • Industrial Machinery | 98 | 76 | 98 | 67 | 79 | 90 |
2. Large • Wireless Telecommunication | 96 | 49 | 98 | 88 | 73 | 80 |
3. Large • Integrated Telecommunication | 94 | 51 | 94 | 79 | 77 | 73 |
4. Medium • Real Estate: Operating Services | 94 | 67 | 91 | 68 | 93 | 67 |
5. Large • Multi-line Insurance | 91 | 43 | 94 | 70 | 78 | 85 |
6. X-Large • Specialty Chemicals | 90 | 77 | 80 | 88 | 49 | 56 |
7. Large • Real Estate: Operating Services | 87 | 52 | 87 | 90 | 66 | 60 |
8. Medium • Investment Banking & Brokerage | 83 | 65 | 67 | 12 | 90 | 69 |
9. Large • Commodity Chemicals | 77 | 47 | 90 | 44 | 61 | 98 |
10. Large • Diversified Support Services | 75 | 72 | 67 | 12 | 97 | 67 |
- Krones (KRN): A global leader in filling, packaging, and process technology for the beverage and food industries. From its base in Bavaria, Krones designs complete production lines used by the world's largest breweries, dairy producers, and soft drink makers.
- Freenet (FNTN): Germany's largest network-independent telecom provider, offering mobile, broadband, and digital TV services to millions of customers without owning physical infrastructure, keeping its cost structure lean and its margins high.
- United Internet (UTDI): An integrated telecom and internet services company running well-known brands like 1&1, GMX, and web.de. It serves tens of millions of consumers and businesses with broadband, mobile, and cloud solutions across Europe.
- TAG Immobilien (TEG): A residential property company managing around 85,000 apartments in affordable housing markets across northern and eastern Germany as well as Poland, benefiting from stable rental demand in underserved regions.
- Talanx (TLX): Germany's third-largest insurance group and parent of Hannover Re, one of the world's top reinsurers. Its mix of retail insurance, industrial coverage, and global reinsurance makes it broadly diversified across the risk spectrum.
- Evonik (EVK): A specialty chemicals company producing high-performance materials for applications ranging from animal nutrition and healthcare to coatings and 3D printing. Evonik focuses on niches where chemistry creates measurable value.
- LEG Immobilien (LEG): One of Germany's largest residential landlords, managing over 160,000 apartments primarily in North Rhine-Westphalia, the country's most densely populated region.
- flatexDEGIRO (FTK): Europe's leading pan-European online broker, operating the flatex and DEGIRO platforms in 16 countries. It owns its own banking and brokerage infrastructure, giving it a scalable cost advantage in retail investing.
- Fuchs (FPE): The world's largest independent lubricant manufacturer, serving automotive, industrial, and mining customers globally from its headquarters in Mannheim.
- Bilfinger (GBF): An industrial services provider specializing in maintenance, modifications, and engineering for energy, chemical, and pharmaceutical plants across Europe and the Middle East.
All of these lists, and more, are available with an Obermatt subscription.