The Australian market has shown mixed performance recently, with the ASX200 closing up 0.39% at 8,013 points, driven by a rally in bank stocks while energy and mining sectors faced challenges due to falling commodity prices. In this fluctuating environment, investors often seek growth companies with significant insider ownership as these can indicate strong confidence from those closest to the business.
Top 10 Growth Companies With High Insider Ownership In Australia
Overview: Aussie Broadband Limited, with a market cap of A$1.09 billion, provides telecommunications and technology services in Australia.
Operations: The company's revenue segments include Business (A$96.97 million), Wholesale (A$159.73 million), Residential (A$585.07 million), Symbio Group (A$69.93 million), and Enterprise and Government (A$88.04 million).
Insider Ownership: 10.8%
Earnings Growth Forecast: 27.3% p.a.
Aussie Broadband reported a revenue increase to A$999.75 million for FY2024, up from A$787.95 million, with net income rising to A$26.38 million. Earnings are expected to grow significantly over the next three years, outpacing the Australian market's growth rate. Despite substantial insider ownership and trading at 57.7% below estimated fair value, ABB faces challenges with low forecasted return on equity and slower revenue growth compared to its earnings trajectory.
Overview: Cettire Limited operates an online luxury goods retailing business in Australia, the United States, and internationally, with a market cap of A$553.99 million.
Operations: The company's revenue primarily stems from online retail sales, amounting to A$742.26 million.
Insider Ownership: 34.1%
Earnings Growth Forecast: 29.0% p.a.
Cettire's earnings are forecast to grow significantly at 29.05% per year, outpacing the Australian market. Despite lower profit margins this year (1.4% vs. 3.8%), revenue is expected to grow faster than the market at 16.1%. Recent insider buying indicates confidence, and shares trade at a substantial discount to estimated fair value. FY2024 saw sales rise to A$742.26 million, though net income declined to A$10.47 million from A$15.97 million last year.
Overview: Nanosonics Limited, with a market cap of A$1.08 billion, operates as a global infection prevention company.
Operations: Nanosonics generates revenue primarily from its Healthcare Equipment segment, which brought in A$170.01 million.
Insider Ownership: 15.1%
Earnings Growth Forecast: 23.2% p.a.
Nanosonics, a growth company with high insider ownership, reported FY2024 sales of A$170.01 million and net income of A$12.97 million, down from A$19.88 million last year. Despite lower profit margins (7.6% vs 12%), the stock trades 30.1% below estimated fair value and is expected to see earnings grow significantly at 23.15% per year, outpacing the Australian market's growth rate of 12.1%. Revenue is forecast to grow at 8.7% annually.
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:CTT and ASX:NAN.
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