As the Canadian market navigates a period of economic adjustment with cooling labor markets and potential rate cuts from the Bank of Canada, investors are keenly observing how these shifts might influence growth opportunities. In this environment, stocks with substantial insider ownership can offer unique insights into company confidence and alignment with shareholder interests.
Top 10 Growth Companies With High Insider Ownership In Canada
Overview: Black Diamond Group Limited specializes in renting and selling modular space and workforce accommodation solutions, with a market cap of CA$549.97 million.
Operations: Revenue segments for Black Diamond Group Limited include modular space solutions and workforce accommodation solutions.
Insider Ownership: 26.1%
Black Diamond Group has experienced substantial insider buying and is trading at a good value, 48.8% below its estimated fair value. Despite recent earnings declines, with Q3 2024 sales dropping to C$101.19 million from C$117.52 million a year ago, the company forecasts significant annual profit growth of 24.6%, outpacing the Canadian market's 16.2%. Analysts agree on a potential stock price rise of 37%.
Overview: North American Construction Group Ltd. offers mining and heavy civil construction services to the resource development and industrial construction sectors in Australia, Canada, and the United States, with a market cap of CA$752.76 million.
Operations: The company generates revenue through its provision of mining and heavy civil construction services across the resource development and industrial construction sectors in Australia, Canada, and the United States.
Insider Ownership: 11.6%
North American Construction Group has seen substantial insider buying recently, indicating confidence in its growth potential. Despite a decline in net profit margins to 4.8% from 8.2% last year, earnings are forecasted to grow significantly at 34.9% annually, outpacing the Canadian market's growth rate. The company is trading at a significant discount of 72% below its estimated fair value and has extended its credit facility to CAD 525 million for operational flexibility across Canada and Australia.
Overview: Savaria Corporation offers accessibility solutions for the elderly and physically challenged across Canada, the United States, Europe, and internationally, with a market cap of CA$1.61 billion.
Operations: The company's revenue segments include Patient Care, generating CA$183.98 million, and Segment Adjustment, contributing CA$673.74 million.
Insider Ownership: 17.2%
Savaria Corporation demonstrates growth potential with earnings forecasted to grow 30% annually, surpassing the Canadian market's 16.2% rate. Despite significant insider selling in recent months, its stock trades at a 30.2% discount to estimated fair value. Recent financial results show an increase in sales and net income, while dividends have been raised by 3.85%, reflecting confidence in sustained profitability and shareholder returns amidst ongoing expansion efforts.
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:BDI TSX:NOA and TSX:SIS.
