As Canadian markets navigate a complex landscape of persistent inflation and shifting leadership in sectors, investors are keenly observing how these factors influence growth opportunities. In this environment, companies with high insider ownership and robust revenue growth stand out as potentially strong contenders, offering alignment of interests between management and shareholders amidst the broader economic crosscurrents.
Top 10 Growth Companies With High Insider Ownership In Canada
Overview: First National Financial Corporation, with a market cap of CA$2.47 billion, operates in Canada by originating, underwriting, and servicing commercial and residential mortgages through its subsidiaries.
Operations: The company's revenue is derived from two main segments: CA$215.53 million from commercial mortgages and CA$423.75 million from residential mortgages in Canada.
Insider Ownership: 38.4%
Revenue Growth Forecast: 14.0% p.a.
First National Financial demonstrates strong insider ownership with substantial insider buying over the past three months, indicating confidence in its growth prospects. The company trades at a good value compared to peers and is 42.7% below its estimated fair value. While revenue growth of 14% annually is slower than the desired 20%, it still surpasses the Canadian market average. Additionally, First National offers an attractive dividend yield of 6.07%, appealing to income-focused investors.
Overview: goeasy Ltd. offers non-prime leasing and lending services through its easyhome, easyfinancial, and LendCare brands to Canadian consumers, with a market cap of CA$2.87 billion.
Operations: The company generates revenue from its Easyhome segment at CA$152.88 million and its Easyfinancial segment at CA$1.37 billion.
Insider Ownership: 21.3%
Revenue Growth Forecast: 27.8% p.a.
goeasy shows a mix of strengths and challenges, with high insider ownership and significant insider selling in recent months. The company trades at good value compared to its peers, despite being 53.5% below estimated fair value. Revenue is forecast to grow at 27.8% annually, outpacing the Canadian market significantly. However, the dividend yield of 3.35% is not well covered by free cash flows, raising sustainability concerns amidst robust revenue growth expectations and a recent dividend increase.
Overview: Vitalhub Corp. offers technology solutions for health and human service providers across several regions including Canada, the United States, the United Kingdom, Australia, and Western Asia, with a market cap of CA$597.18 million.
Operations: The company's revenue is primarily derived from its Healthcare Software segment, which generated CA$61.61 million.
Insider Ownership: 14.6%
Revenue Growth Forecast: 19% p.a.
Vitalhub demonstrates strong growth potential with revenue expected to increase by 19% annually, outpacing the Canadian market. Despite recent shareholder dilution, it trades at a substantial discount to its estimated fair value. The company has bolstered financial flexibility through expanded credit facilities and raised CAD 30 million via a follow-on equity offering. Its SHREWD platform enhances healthcare system integration, supporting significant operational improvements for clients like the Winnipeg Regional Health Authority and NHS England.
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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 TSX:FN TSX:GSY and TSX:VHI.
