As the Canadian TSX navigates a seasonally volatile period, marked by softening labor markets and potential interest rate cuts, investors are seeking resilient opportunities. In this environment, growth companies with high insider ownership can offer a compelling proposition due to their alignment of interests and potential for long-term value creation.
Top 10 Growth Companies With High Insider Ownership In Canada
Overview: Knight Therapeutics Inc. develops, manufactures, acquires, in-licenses, out-licenses, markets, and distributes pharmaceutical and consumer health products as well as medical devices worldwide with a market cap of CA$570.85 million.
Operations: The company's revenue primarily comes from its pharmaceutical segment, which generated CA$337.87 million.
Insider Ownership: 22.3%
Earnings Growth Forecast: 66.2% p.a.
Knight Therapeutics, a growth company with high insider ownership, has shown mixed financial results recently. For Q2 2024, it reported sales of C$95.57 million but a net loss of C$1.94 million compared to net income in the previous year. Despite this, its earnings are forecast to grow significantly at 66.17% per year and the company expects revenues between C$355 million and C$365 million for 2024. Knight Therapeutics has also been actively repurchasing shares under its buyback program.
Overview: Savaria Corporation offers accessibility solutions for the elderly and physically challenged across Canada, the United States, Europe, and internationally, with a market cap of CA$1.43 billion.
Operations: The company generates revenue primarily from Patient Care at CA$183.98 million and Segment Adjustment at CA$673.74 million.
Insider Ownership: 19.6%
Earnings Growth Forecast: 21.5% p.a.
Savaria Corporation, with high insider ownership, reported robust financial performance for Q2 2024, achieving sales of C$221.34 million and net income of C$10.96 million. The company’s earnings are forecast to grow significantly at 21.48% annually over the next three years, outpacing the Canadian market’s growth rate. Despite some shareholder dilution in the past year and no substantial recent insider buying, Savaria continues to pay a reliable monthly dividend of C$0.0433 per share.
Overview: Vitalhub Corp. provides technology solutions for health and human service providers across multiple countries, with a market cap of CA$391.57 million.
Operations: Vitalhub's revenue from healthcare software solutions is CA$58.32 million.
Insider Ownership: 15.1%
Earnings Growth Forecast: 65.9% p.a.
Vitalhub, a growth company with high insider ownership, reported Q2 2024 revenue of C$16.24 million, up from C$13.09 million the previous year. Despite a net loss of C$0.34 million for the quarter, earnings are forecast to grow significantly at 65.93% annually over the next three years, outpacing the Canadian market's 15.3%. Trading at 59.3% below fair value estimates and with substantial expected revenue growth (13.5% per year), Vitalhub shows strong potential despite recent shareholder dilution and large one-off items impacting financial results.
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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 TSX:GUD TSX:SIS and TSX:VHI.
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