As European markets continue to rally, buoyed by slower inflation and potential interest rate cuts from the European Central Bank, investors are increasingly looking for growth opportunities with strong insider ownership. In this article, we explore three top growth companies on the Swedish Exchange that exhibit high levels of insider ownership, a factor often seen as a sign of confidence in the company's future prospects.
Top 10 Growth Companies With High Insider Ownership In Sweden
Overview: Absolent Air Care Group AB (publ) designs, develops, sells, installs, and maintains air filtration units with a market cap of SEK3.57 billion.
Operations: The company's revenue segments include Industrial at SEK1.14 billion and Commercial Kitchen at SEK281.66 million.
Insider Ownership: 13.5%
Earnings Growth Forecast: 18.8% p.a.
Absolent Air Care Group, a growth company with high insider ownership, is forecasted to grow its earnings at 18.8% per year, outpacing the Swedish market's 15.1%. Despite trading at 39.4% below its estimated fair value and achieving a high return on equity (20.4%) in three years, recent executive changes may impact stability. Recent earnings showed modest sales growth but a decline in quarterly net income and basic EPS compared to last year.
Overview: Humble Group AB (publ) refines, develops, and distributes fast-moving consumer products in Sweden and internationally, with a market cap of SEK5.60 billion.
Operations: Humble Group's revenue segments include Future Snacking (SEK950 million), Sustainable Care (SEK2.30 billion), Quality Nutrition (SEK1.53 billion), and Nordic Distribution (SEK2.67 billion).
Insider Ownership: 13%
Earnings Growth Forecast: 78.3% p.a.
Humble Group insiders have significantly increased their holdings in the past three months, reflecting confidence in its future. The company is forecasted to grow its earnings by 78.3% annually and become profitable within three years, outpacing the Swedish market's growth. Recent earnings reports show a rise in sales to SEK 1.86 billion for Q2 2024 and net income of SEK 32 million, reversing last year's losses. Trading at good value compared to peers and industry, Humble also secured an additional SEK 300 million credit facility agreement with major banks.
Overview: Medicover AB (publ) operates healthcare and diagnostic services in Poland, Sweden, and internationally, with a market cap of SEK27.93 billion.
Operations: Medicover's revenue segments include €610 million from Diagnostic Services and €1.32 billion from Healthcare Services.
Insider Ownership: 11.1%
Earnings Growth Forecast: 38.6% p.a.
Medicover has seen strong earnings growth, with net income rising to €12.5 million for the first half of 2024 from €7 million a year ago. The company forecasts organic revenue to exceed €2.2 billion by year-end 2025, indicating robust future growth prospects. Insider ownership remains high, and recent executive changes include Anand Patel joining as CFO in October 2024. Medicover trades at a significant discount to its estimated fair value, though interest payments are not well covered by earnings.
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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 OM:ABSO OM:HUMBLE and OM:MCOV B.
