In a period marked by global market volatility and mixed economic signals, the Swedish stock market has shown resilience, with some sectors outperforming expectations. Amidst this landscape, growth companies with high insider ownership are often seen as promising investments due to their strong alignment of interests between management and shareholders. When evaluating stocks in such an environment, it is crucial to consider factors like robust growth potential and substantial insider ownership which can indicate confidence from those closest to the company’s operations.
Top 10 Growth Companies With High Insider Ownership In Sweden
Overview: Bilia AB (publ) is a full-service supplier for car ownership operating in Sweden, Norway, Luxembourg, and Belgium with a market cap of SEK11.59 billion.
Operations: Bilia's revenue segments include 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 trading at 69% below its estimated fair value. Despite lower profit margins this year (2%) compared to last year (3.1%), Bilia's earnings are forecast to grow 18.1% annually, outpacing the Swedish market's 15.7%. Recent earnings reports show increased sales but decreased net income and EPS compared to last year. A new partnership with Volvo Car Sweden aims to enhance customer experience starting September 2024.
Overview: EQT AB (publ) is a global private equity firm specializing in private capital and real asset segments, with a market cap of SEK374.84 billion.
Operations: The company's revenue segments include €37.20 million from Central, €878.70 million from Real Assets, and €1.28 billion from Private Capital.
Insider Ownership: 31%
Earnings Growth Forecast: 56.9% p.a.
EQT AB, a prominent growth company in Sweden with substantial insider ownership, has been actively pursuing strategic acquisitions despite facing stiff competition. Recent M&A activities include competing for Aavas Financiers and JB Chemicals & Pharmaceuticals. The company reported strong earnings growth of EUR 282 million for H1 2024, up from EUR 120 million last year. Additionally, EQT has initiated a share repurchase program to adjust its capital structure and support future acquisitions.
Overview: Lime Technologies AB (publ) offers SaaS-based CRM solutions in the Nordic region and has a market cap of SEK4.62 billion.
Operations: Lime Technologies AB (publ) 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 significant insider ownership, is forecast to grow earnings by 24.1% annually, outpacing the market. Recent Q2 results showed revenue of SEK 174.71 million and net income of SEK 20.42 million. Despite high debt levels, Lime trades at a discount to its estimated fair value and expects a high return on equity (35.6%) in three years. The company recently appointed 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:EQT and OM:LIME.
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