The Australian market has shown resilience, with the ASX200 climbing 1.3% to close above 7970 points, buoyed by Wall Street's ongoing rally and robust performances across various sectors. As investors navigate these favorable conditions, identifying growth companies with high insider ownership can be particularly appealing due to the alignment of interests between shareholders and company insiders. In this article, we will explore three ASX-listed growth companies that not only boast significant insider ownership but are also expecting up to a 51% return on equity (ROE).
Top 10 Growth Companies With High Insider Ownership In Australia
Overview: Ora Banda Mining Limited (ASX:OBM) is an Australian company focused on the exploration, operation, and development of mineral properties with a market cap of A$901.83 million.
Operations: Ora Banda Mining generates revenue primarily from its gold mining operations, which amounted to A$166.66 million.
Insider Ownership: 10.2%
Return On Equity Forecast: 52% (2026 estimate)
Ora Banda Mining is forecast to become profitable within 3 years, with revenue growth expected at 46.4% per year, significantly outpacing the Australian market. The company trades at a substantial discount to its estimated fair value and has a very high projected return on equity of 51.5%. Recent developments include the appointment of Ms Kathryn Cutler as an independent Non-executive Director, enhancing their expertise in mineral exploration and resource development.
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$7.31 billion.
Operations: The company's revenue segments include Software (A$317.24 million), Corporate (A$83.83 million), and Consulting (A$68.13 million).
Insider Ownership: 12.3%
Return On Equity Forecast: 33% (2027 estimate)
Technology One continues to exhibit robust growth, with earnings increasing by 13.1% over the past year and revenue reaching A$240.83 million for H1 2024. Forecasts suggest annual earnings growth of 14.8%, outpacing the Australian market's average. Recent strategic appointments, including Paul Robson as Non-Executive Director, bolster its SaaS capabilities and operational efficiency. Despite no significant insider trading activity in the last three months, high insider ownership aligns management interests with shareholders' goals.
Overview: Temple & Webster Group Ltd (ASX:TPW) operates as an online retailer of furniture, homewares, and home improvement products in Australia with a market cap of A$1.38 billion.
Operations: The company's revenue primarily comes from the sale of furniture, homewares, and home improvement products, amounting to A$497.84 million.
Insider Ownership: 13.7%
Return On Equity Forecast: 25% (2027 estimate)
Temple & Webster Group is experiencing robust growth, with earnings expected to increase by 46.76% annually, significantly outpacing the Australian market's average. Recent strategic moves include appointing Cameron Barnsley as CFO and announcing a share buyback program for up to A$30 million. Despite lower profit margins compared to last year, high insider ownership aligns management interests with shareholders' goals, supporting its growth strategy in the technology and ecommerce sectors.
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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 ASX:OBM ASX:TNE and ASX:TPW.
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