3 Growth Companies With High Insider Ownership And Earnings Growth Up To 102%
editorial-team@simplywallst.com (Simply Wall St)
4 min read
In a week marked by heightened economic and earnings activity, global markets experienced mixed results, with major indexes like the Nasdaq Composite and S&P MidCap 400 reaching record highs before retreating. Amidst this backdrop of cautious optimism and fluctuating market conditions, identifying growth companies with high insider ownership can offer unique insights into potential investment opportunities, as these firms often demonstrate strong alignment between management interests and shareholder value.
Top 10 Growth Companies With High Insider Ownership
Overview: Seojin System Co., Ltd operates in the telecom industry, offering equipment such as repeaters, mechanical products, and LED devices, with a market cap of ₩1.60 trillion.
Operations: The company's revenue segments include the EMS Division, contributing ₩1.52 billion, and the Semiconductor segment, adding ₩169.98 million.
Insider Ownership: 30.7%
Earnings Growth Forecast: 49.1% p.a.
Seojin System Ltd. demonstrates strong growth potential, with earnings forecast to grow 49.13% annually and revenue expected to increase by 33.4% per year, outpacing the Korean market's average growth rates. Despite being undervalued at 82.1% below its estimated fair value and analysts predicting a 37% stock price rise, the company faces challenges with shareholder dilution and interest payments not well covered by earnings.
Overview: Sensirion Holding AG, along with its subsidiaries, is involved in the global development, production, sale, and servicing of sensor systems, modules, and components with a market cap of CHF1.01 billion.
Operations: The company's revenue primarily comes from its sensor systems, modules, and components segment, totaling CHF237.91 million.
Insider Ownership: 19.9%
Earnings Growth Forecast: 102.7% p.a.
Sensirion Holding shows potential as a growth company with earnings expected to grow significantly by 102.68% annually, although recent results showed a net loss of CHF 36.01 million for the half year ended June 30, 2024. The stock is trading at a substantial discount of 44.9% below its estimated fair value, and analysts anticipate a price increase of 26.7%. However, revenue growth is forecasted at only 13.9% per year, which may limit upside potential.
Overview: Fujio Food Group Inc. operates restaurants in Japan and internationally, with a market cap of ¥63.64 billion.
Operations: The company's revenue is primarily derived from its Directly Managed Business, contributing ¥28.77 billion, and the FC Business, which accounts for ¥1.60 billion.
Insider Ownership: 29.5%
Earnings Growth Forecast: 75.6% p.a.
Fujio Food Group's revenue is expected to grow at 6.5% annually, outpacing the Japanese market's 4.2% growth rate, and it aims to become profitable within three years, surpassing average market expectations. The stock trades at a 23.5% discount to its estimated fair value, indicating potential undervaluation. Despite no significant insider trading in recent months, projected earnings growth of 75.57% per year highlights strong future prospects for investors focused on growth companies with high insider ownership.
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 KOSDAQ:A178320 SWX:SENS and TSE:2752.
