The Australian market has shown resilience with the ASX200 closing up 0.36% at 7,997 points, driven by gains in the Energy, IT, and Discretionary sectors despite a slight dip in Materials. In this environment of sectoral growth and strategic acquisitions, identifying growth companies with high insider ownership can be particularly appealing as it often signals confidence from those closest to the business's operations and future prospects.
Top 10 Growth Companies With High Insider Ownership In Australia
Overview: Energy One Limited offers software products, outsourced operations, and advisory services to wholesale energy, environmental, and carbon trading markets in Australasia and Europe, with a market cap of A$397.90 million.
Operations: The company's revenue is primarily derived from its Energy Software Industry segment, totaling A$55.81 million.
Insider Ownership: 26.7%
Earnings Growth Forecast: 42% p.a.
Energy One has been added to the S&P/ASX All Ordinaries Index, highlighting its market presence. The company reported a net income of A$2.46 million for the half year ended December 2024, reversing a prior loss. Revenue and earnings are forecast to grow significantly faster than the Australian market, though insider activity shows substantial selling recently. Despite this, Energy One's growth trajectory remains strong with expected annual profit growth of 42%.
Overview: MA Financial Group Limited, with a market cap of A$1.03 billion, offers a range of financial services in Australia through its subsidiaries.
Operations: MA Financial Group's revenue is primarily derived from Asset Management (A$189.65 million), Lending & Technology (A$60.82 million), and Corporate Advisory and Equities (CA&E) (A$55.72 million), with a smaller contribution from Corporate Services (A$0.42 million).
Insider Ownership: 17.8%
Earnings Growth Forecast: 30.7% p.a.
MA Financial Group is poised for strong earnings growth, with forecasts indicating a 30.7% annual increase, outpacing the broader Australian market. Recent earnings showed a rise to A$41.79 million from A$28.52 million year-on-year, although revenue is expected to decline significantly over three years. The company's return on equity is projected to be robust at 21.4%. Despite limited recent insider trading activity and a dividend not fully covered by free cash flow, strategic board appointments bolster governance.
Overview: Technology One Limited develops, markets, sells, implements, and supports integrated enterprise business software solutions in Australia and internationally with a market cap of A$9.46 billion.
Operations: The company's revenue segments include Software at A$347.35 million, Corporate at A$87.02 million, and Consulting at A$72.17 million.
Insider Ownership: 10.4%
Earnings Growth Forecast: 15.6% p.a.
Technology One's earnings are poised to grow at 15.65% annually, surpassing the Australian market's 11.7% forecast, though not significantly high. Revenue growth is expected at 12.1%, outpacing the broader market but below 20%. Recent insider buying activity was more than selling but not substantial in volume. The company's addition to the FTSE All-World Index and changes in governance, including a director's retirement, highlight its evolving strategic position amidst steady financial performance.
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 ASX:EOL ASX:MAF and ASX:TNE.
