As the ASX 200 wrapped up the trading day with modest gains, buoyed by sectors like Real Estate and Healthcare, investor attention remains focused on the broader economic landscape shaped by persistent inflation concerns highlighted in recent RBA minutes. In this context, growth companies with high insider ownership can be particularly appealing as they often signal confidence from those closest to the business, potentially offering resilience and strong earnings growth even amidst challenging market conditions.
Top 10 Growth Companies With High Insider Ownership In Australia
Overview: Aussie Broadband Limited offers telecommunications and technology services in Australia with a market cap of A$1.04 billion.
Operations: The company'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: 11.1%
Earnings Growth Forecast: 23.2% p.a.
Aussie Broadband is trading at 58.6% below its estimated fair value, with earnings growth of 21.5% over the past year and forecasted annual earnings growth of 23.2%, outpacing the Australian market's average. Despite recent shareholder dilution, insider transactions show more buying than selling in the last three months. A share buyback program aims to repurchase 27.3 million shares, enhancing capital efficiency and supporting further growth initiatives while maintaining financial flexibility.
Overview: Develop Global Limited, with a market cap of A$597.53 million, is involved in the exploration and development of mineral resource properties in Australia through its subsidiaries.
Operations: The company generates revenue of A$147.23 million from its mining services segment.
Insider Ownership: 20.4%
Earnings Growth Forecast: 95.9% p.a.
Develop Global has demonstrated significant growth potential, with revenue forecasted to increase by 56.2% annually, surpassing the Australian market's average growth rate. Despite a recent dilution from a A$10 million equity offering, the company is expected to become profitable within three years. Recent earnings showed improved sales of A$147.23 million but still reported a net loss of A$12.13 million. The stock trades at good value compared to peers and industry standards, indicating potential for future expansion.
Overview: Emerald Resources NL is involved in the exploration and development of mineral reserves in Cambodia and Australia, with a market capitalization of A$2.17 billion.
Operations: The company's revenue is primarily derived from mine operations, which amount to A$366.04 million.
Insider Ownership: 18%
Earnings Growth Forecast: 38.9% p.a.
Emerald Resources shows strong growth potential, with earnings forecast to grow 38.9% annually, outpacing the Australian market. Despite past shareholder dilution, it is trading significantly below its estimated fair value. Recent executive changes include the retirement of influential board member Simon Lee AO. Additionally, there are M&A discussions involving EMR's Ravenswood Gold Mine asset worth A$2 billion, which may impact future strategic directions and investor interest in the company.
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:DVP and ASX:EMR.
