Over the last 7 days, the Australian market has risen 1.4%, driven by gains of 3.3% in the Materials sector, while the Energy sector has lagged with a decline of 3.1%. In the past year, the market has climbed 12%, with earnings forecast to grow by 14% annually. In this context, identifying growth companies with high insider ownership can be particularly compelling as it often signals confidence from those closest to the business.
Top 10 Growth Companies With High Insider Ownership In Australia
Overview: Aussie Broadband Limited (ASX:ABB) provides telecommunications services to residential and business customers in Australia, with a market cap of A$1.03 billion.
Operations: Aussie Broadband'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%
Aussie Broadband's revenue is forecast to grow at 10.3% annually, outpacing the Australian market's 5.4% growth rate. Earnings are expected to increase significantly by 31.7% per year over the next three years, faster than the market average of 13.7%. The company reported A$999.75 million in sales for FY2024, up from A$787.95 million last year, with net income rising to A$26.38 million from A$21.72 million despite past shareholder dilution impacting financial results.
Overview: Mineral Resources Limited, with a market cap of A$8.83 billion, operates as a mining services company in Australia, Asia, and internationally through its subsidiaries.
Operations: The company's revenue segments include Lithium at A$1.60 billion, Iron Ore at A$2.50 billion, and Mining Services at A$2.82 billion.
Insider Ownership: 11.6%
Mineral Resources is forecast to achieve significant earnings growth of 24% annually, outpacing the Australian market's 13.7%. Despite a recent dip in profit margins from 16.3% to 7.9%, the company's revenue is projected to grow at a solid rate of 10.7% per year, faster than the market average of 5.4%. Trading at a substantial discount to its estimated fair value, Mineral Resources also benefits from high insider ownership and robust non-cash earnings.
Overview: Nanosonics Limited (ASX:NAN) operates as an infection prevention company in Australia and internationally with a market cap of A$818.09 million.
Operations: Nanosonics generates revenue primarily from its Healthcare Equipment segment, which amounts to A$164.07 million.
Insider Ownership: 15.1%
Nanosonics reported full-year sales of A$170.01 million, up from A$165.99 million, but net income declined to A$12.97 million from A$19.88 million the previous year. Despite this, earnings are forecast to grow significantly at 20.87% annually over the next three years, outpacing market expectations of 13.7%. However, insider activity has been mixed with no substantial buying or selling recently noted and expected return on equity remains low at 12.5%.
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:MIN and ASX:NAN.
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