As global markets face heightened tensions and economic uncertainties, the European market has also experienced a downturn with major indices like the STOXX Europe 600 Index declining due to escalating conflicts in the Middle East. Amidst this backdrop, investors are increasingly looking towards growth companies with high insider ownership as these entities often signal strong confidence from those closest to the business. In Sweden, such companies are particularly noteworthy for their potential resilience and capacity for earnings growth even in challenging times.
Top 10 Growth Companies With High Insider Ownership In Sweden
Overview: Bilia AB (publ) is a full-service supplier for car ownership operating in Sweden, Norway, Luxembourg, and Belgium with a market cap of SEK10.48 billion.
Operations: The company's revenue segments include Fuel (SEK1.03 billion), Car - Norway (SEK7.14 billion), Car - Sweden (SEK19.89 billion), Service - Norway (SEK2.26 billion), Service - Sweden (SEK6.33 billion), Car - Western Europe (SEK3.59 billion), and Service - Western Europe (SEK670 million).
Insider Ownership: 31.4%
Earnings Growth Forecast: 19.5% p.a.
Bilia's earnings are forecast to grow at 19.47% annually, outpacing the Swedish market's 15.2%, though its revenue growth of 5.1% lags behind significant benchmarks. Despite trading at a substantial discount to its estimated fair value, Bilia faces challenges with high debt levels and declining profit margins—down from 3.1% to 2%. Recent earnings reports show increased sales but decreased net income and EPS compared to last year, indicating mixed financial health.
Overview: Storytel AB (publ) offers streaming services for audiobooks and e-books, with a market cap of SEK4.54 billion.
Operations: The company's revenue is primarily derived from its books segment, which generated SEK825.91 million.
Insider Ownership: 19.5%
Earnings Growth Forecast: 98.7% p.a.
Storytel's growth trajectory is bolstered by high insider ownership and recent strategic moves, including a partnership with Wellhub to expand audiobook access across Latin America and Europe. The company has seen substantial insider buying in the past three months, indicating confidence in its prospects. Forecasts suggest Storytel will achieve profitability within three years, with revenue growth expected to outpace the Swedish market. Currently trading significantly below estimated fair value, it presents an intriguing investment case despite slower-than-desired revenue expansion rates.
Overview: Yubico AB offers authentication solutions for computers, networks, and online services with a market cap of SEK23.16 billion.
Operations: The company's revenue is derived from its Security Software & Services segment, totaling SEK2.09 billion.
Insider Ownership: 37.5%
Earnings Growth Forecast: 42.3% p.a.
Yubico demonstrates strong growth potential with high insider ownership, highlighted by its recent partnership with PKO Bank Polski to enhance security using YubiKeys. The company's revenue and earnings are forecasted to grow significantly faster than the Swedish market, at 20.5% and 42.3% annually, respectively. Despite volatility in share price and declining profit margins from last year, Yubico's strategic initiatives in cybersecurity bolster its position as a leader in phishing-resistant authentication solutions.
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:BILI A OM:STORY B and OM:YUBICO.
