The ASX200 is set to trade flat today, with futures predicting a minimal gain despite recent downturns influenced by Wall Street's struggles and US recession fears. Investors are cautiously optimistic as the RBA is expected to keep interest rates on hold, potentially stabilizing the local market after significant losses. In this context, growth companies with high insider ownership can offer unique advantages. Insider ownership often signals confidence in the company's future prospects and aligns management's interests with those of shareholders, making these stocks particularly attractive during uncertain economic times.
Top 10 Growth Companies With High Insider Ownership In Australia
Overview: Aussie Broadband Limited (ASX:ABB) offers telecommunications services to residential and business customers in Australia, with a market cap of A$883.60 million.
Operations: Aussie Broadband Limited's revenue segments include Business (A$94.21 million), Wholesale (A$125.25 million), Residential (A$549.59 million), and Enterprise and Government (A$85.85 million).
Insider Ownership: 10.8%
Aussie Broadband is trading at 10.4% below its estimated fair value, with earnings forecast to grow 23.7% annually, outpacing the Australian market's 13.3%. Despite significant past earnings growth of 83.8%, its Return on Equity is projected to be low at 8.8% in three years. The company has seen more insider buying than selling recently and plans further acquisitions or investments following a A$120 million equity raising last year for Superloop pursuit.
Overview: Capricorn Metals Ltd is an Australian company involved in the evaluation, exploration, development, and production of gold properties with a market cap of A$2.08 billion.
Operations: The company generates revenue primarily from its Karlawinda gold project, which reported A$356.94 million.
Insider Ownership: 12.3%
Capricorn Metals is forecast to achieve annual earnings growth of 27%, significantly outpacing the Australian market's 13.3%. Despite a recent drop in profit margins from 25.4% to 5.2%, its Return on Equity is expected to reach a high 32.5% in three years. Trading at nearly 60% below estimated fair value, Capricorn's revenue growth of 13.6% annually surpasses the market average, though it remains below the desired threshold for high-growth companies.
Overview: Technology One Limited develops, markets, sells, implements, and supports integrated enterprise business software solutions in Australia and internationally with a market cap of A$6.62 billion.
Operations: The company's revenue segments include Software at A$317.24 million, Corporate at A$83.83 million, and Consulting at A$68.13 million.
Insider Ownership: 12.3%
Technology One demonstrates solid growth potential with forecasted annual earnings growth of 14.8%, surpassing the Australian market's average of 13.3%. Recent revenue and net income increases to A$240.83 million and A$48 million, respectively, underscore its positive trajectory. The appointment of Paul Robson as a Non-Executive Director adds strategic depth, particularly in scaling SaaS businesses. Despite a high Price-To-Earnings ratio (60.4x), it remains below the industry average, reflecting reasonable valuation within its sector.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.The analysis only considers stock directly held by insiders. It does not include indirectly owned stock through other vehicles such as corporate and/or trust entities. All forecast revenue and earnings growth rates quoted are in terms of annualised (per annum) growth rates over 1-3 years.
Companies discussed in this article include ASX:ABB ASX:CMM and ASX:TNE.
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