As global markets experience fluctuations, with notable shifts in U.S. inflation and European economic indicators, the Swedish stock market remains a point of interest for investors seeking growth opportunities. Particularly appealing are Swedish companies with high insider ownership, which can signal strong confidence in the company's future from those who know it best.
Top 10 Growth Companies With High Insider Ownership In Sweden
Overview: Humble Group AB operates in refining, developing, and distributing fast-moving consumer products both in Sweden and internationally, with a market capitalization of approximately SEK 4.40 billion.
Operations: The company's revenue is segmented into Future Snacking at SEK 935 million, Sustainable Care at SEK 2.24 billion, Quality Nutrition at SEK 1.51 billion, and Nordic Distribution at SEK 2.62 billion.
Insider Ownership: 22.2%
Earnings Growth Forecast: 73.8% p.a.
Humble Group, a Swedish growth company with high insider ownership, has shown promising developments. The company is trading at 46.7% below its estimated fair value and has witnessed more insider buying than selling recently, although not in substantial volumes. Earnings are expected to grow significantly at 73.84% per year, and it is forecast to become profitable within three years, outpacing average market growth. Additionally, Humble's revenue growth at 11% per year surpasses the Swedish market's 1.8%. Recently, Humble secured an increase in its credit facilities by SEK 300 million to total SEK 1.95 billion, enhancing its financial flexibility for future expansions.
Overview: Pandox AB, a global hotel property company, engages in owning, developing, and leasing hotel properties with a market capitalization of approximately SEK 37.41 billion.
Operations: The company generates revenue primarily through two segments: Own operation, which brought in SEK 3.27 billion, and Rental Agreement, contributing SEK 3.82 billion.
Insider Ownership: 12.3%
Earnings Growth Forecast: 27.7% p.a.
Pandox, a Swedish growth company with significant insider ownership, recently reported strong financial results with substantial increases in sales and net income for the first half of 2024. Despite this robust performance, Pandox's revenue growth is modest at 2.3% per year, slightly above the Swedish market average. The company's profit margins have declined compared to last year, and its dividend coverage is weak. However, earnings are expected to grow by 27.7% annually over the next three years, outpacing broader market expectations.
Overview: Yubico AB specializes in authentication solutions for computers, networks, and online services, with a market capitalization of SEK 22.73 billion.
Operations: The company generates SEK 1.93 billion from its Security Software & Services segment.
Insider Ownership: 37.5%
Earnings Growth Forecast: 43.8% p.a.
Yubico, a Swedish growth company with high insider ownership, recently launched MilSecure Mobile for secure DOD web access and announced robust Q1 2024 earnings with sales of SEK 504.4 million. Despite substantial insider selling and a share dilution over the past year, Yubico's revenue is expected to grow by 22.9% annually. However, profit margins have decreased to 8.6% from last year's 16.9%, reflecting some operational challenges amidst its expansion efforts.
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:HUMBLE OM:PNDX B and OM:YUBICO.
