Despite a challenging global economic environment, with European markets experiencing declines amid fears of slowing growth, Sweden's stock market remains a focal point for investors seeking resilient opportunities. In this context, growth companies with high insider ownership can offer unique advantages as they often align management interests with those of shareholders. Investing in such stocks can be particularly appealing during uncertain times, as insider ownership may indicate confidence in the company's long-term prospects.
Top 10 Growth Companies With High Insider Ownership In Sweden
Overview: Bilia AB (publ) operates as a full-service supplier for car ownership in Sweden, Norway, Luxembourg, and Belgium with a market cap of SEK11.30 billion.
Operations: Bilia AB generates revenue from several segments, including Fuel (SEK1.03 billion), Car - Norway (SEK7.14 billion), Car - Sweden (SEK19.89 billion), Service - Norway (SEK2.26 billion), Service - Sweden (SEK6.33 billion), Car - Western Europe (SEK3.59 billion), and Service - Western Europe (SEK670 million).
Insider Ownership: 31.6%
Earnings Growth Forecast: 18.1% p.a.
Bilia, a growth company with high insider ownership in Sweden, is forecast to grow earnings at 18.1% annually, outpacing the Swedish market's 15.2%. Despite trading at 69.6% below its fair value estimate and expected revenue growth of 5% per year, Bilia faces challenges such as declining profit margins (2% from 3.1%) and a dividend (5.37%) not well covered by free cash flows. Recent earnings show mixed results with increased sales but decreased net income and EPS compared to last year.
Overview: Fortnox AB (publ) offers financial and administrative software solutions for small and medium-sized businesses, accounting firms, and organizations, with a market cap of SEK36.56 billion.
Operations: The company's revenue segments include Businesses (SEK378 million), Marketplaces (SEK160 million), Core Products (SEK734 million), Accounting Firms (SEK352 million), and Financial Services (SEK249 million).
Insider Ownership: 21.1%
Earnings Growth Forecast: 22.6% p.a.
Fortnox, a Swedish growth company with significant insider ownership, reported robust financial performance for Q2 2024, with revenue rising to SEK 521 million from SEK 413 million a year ago and net income increasing to SEK 164 million from SEK 127 million. Insider buying has been substantial over the past three months. Analysts forecast Fortnox’s revenue to grow at an impressive rate of over 20% annually, significantly outpacing the market average. The stock trades below its fair value estimate by approximately 23.6%.
Overview: Lime Technologies AB (publ) offers SaaS-based CRM solutions in the Nordic region and has a market cap of approximately SEK4.20 billion.
Operations: The company generates revenue primarily from selling and implementing CRM software systems, amounting to SEK631.84 million.
Insider Ownership: 10.7%
Earnings Growth Forecast: 24.1% p.a.
Lime Technologies, a Swedish growth company with high insider ownership, is forecast to see earnings grow at 24.1% annually, outpacing the market's 15.2%. Despite trading 33.7% below its fair value estimate and reporting Q2 sales of SEK 174.49 million (up from SEK 144.48 million), the company faces challenges with high debt levels and slower revenue growth (14.6%) compared to other high-growth firms. Recent executive changes include appointing Anders Hofvander as CFO starting autumn 2024.
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 OM:BILI A OM:FNOX and OM:LIME.
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