As global markets react to China's robust stimulus measures, European indices have shown resilience, with Sweden's central bank cutting interest rates to stimulate economic activity. In this environment, identifying growth companies with high insider ownership can be particularly appealing as it often signals confidence from those closest to the business.
Top 10 Growth Companies With High Insider Ownership In Sweden
Overview: NIBE Industrier AB (publ) develops, manufactures, markets, and sells energy-efficient solutions for indoor climate comfort and intelligent heating and control components internationally, with a market cap of SEK112.21 billion.
Operations: The company's revenue segments are Stoves (SEK5.33 billion), Element (SEK13.48 billion), and Climate Solutions (SEK35.22 billion).
Insider Ownership: 20.2%
NIBE Industrier, a Swedish growth company with high insider ownership, has faced recent financial challenges. For the second quarter of 2024, sales dropped to SEK 10.04 billion from SEK 11.83 billion a year ago, and net income fell sharply to SEK 219 million from SEK 1.32 billion. Despite these setbacks, NIBE's earnings are forecast to grow significantly at an annual rate of 42.55%, outpacing the market's projected growth of 15.1%. However, revenue growth is expected to be modest at 6.8% per year and return on equity is forecasted to remain low at 11.9% in three years' time.
Overview: AB Sagax (publ) is a property company operating in Sweden, Finland, France, Benelux, Spain, Germany, and other European countries with a market cap of SEK101.97 billion.
Operations: AB Sagax generates SEK4.63 billion in revenue from its Real Estate - Rental segment.
Insider Ownership: 28.6%
AB Sagax, a Swedish growth company with high insider ownership, is forecast to see its earnings grow 29.1% annually, outpacing the Swedish market's 15.1%. Despite recent shareholder dilution and debt concerns, the company reported strong financial results for Q2 2024 with sales of SEK 1.20 billion and net income of SEK 978 million. For FY2024, profit from property management is projected at SEK 4.30 billion based on current assets and acquisitions.
Overview: Sectra AB (publ) offers medical IT and cybersecurity solutions across Sweden, the United Kingdom, the Netherlands, and other parts of Europe, with a market cap of SEK54.68 billion.
Operations: Sectra's revenue segments include Imaging IT Solutions (SEK2.67 billion), Secure Communications (SEK388.55 million), and Business Innovation (SEK90.77 million).
Insider Ownership: 30.3%
Sectra's earnings are forecast to grow 21.2% annually, surpassing the Swedish market's 15.1%, though revenue growth at 14.2% lags behind the desired 20%. Recent Q1 results showed sales of SEK 736.75 million and net income of SEK 80.4 million, both up from last year. The company also successfully launched its public cloud service in Belgium, enhancing operational efficiency for two hospitals using Microsoft Azure technology.
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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:NIBE B OM:SAGA A and OM:SECT B.
