Amidst the backdrop of fluctuating European markets, where tariff uncertainties and economic forecasts have stirred investor sentiment, growth companies with high insider ownership are drawing attention. In such an environment, stocks with substantial insider stakes might signal confidence in their long-term potential and resilience against market volatility.
Top 10 Growth Companies With High Insider Ownership In Europe
Overview: Bilia AB (publ) is a full-service supplier for car ownership, operating in Sweden, Norway, Luxembourg, and Belgium with a market cap of SEK12.43 billion.
Operations: The company's revenue segments include SEK899 million from Fuel, SEK7.19 billion from Car sales in Norway, SEK19.82 billion from Car sales in Sweden, SEK2.38 billion from Service in Norway, SEK6.64 billion from Service in Sweden, SEK3.69 billion from Car sales in Western Europe, and SEK710 million from Service in Western Europe.
Insider Ownership: 17%
Earnings Growth Forecast: 19.2% p.a.
Bilia's growth potential is underscored by a forecasted annual earnings increase of 19.2%, outpacing the Swedish market. Despite this, interest payments aren't well covered by earnings, and profit margins have declined to 1.7% from last year's 2.4%. The company recently announced a SEK 800 million fixed-income offering and adjusted its dividend to SEK 5.60 per share for 2024, reflecting higher payout ratios than historically observed but aligning with policy.
Overview: Hanza AB (publ) offers manufacturing solutions and has a market cap of SEK3.60 billion.
Operations: The company's revenue is primarily derived from its Main Markets segment at SEK2.86 billion, followed by Other Markets at SEK1.97 billion, and Business Development and Services contributing SEK14 million.
Insider Ownership: 37.8%
Earnings Growth Forecast: 26.8% p.a.
HANZA's growth is highlighted by a forecasted 26.8% annual earnings increase, surpassing the Swedish market average. Despite this, profit margins have decreased to 2.3% from 5.2%. Revenue is expected to grow at 11.4%, outpacing the local market but below high-growth benchmarks. The stock trades at a significant discount to its estimated fair value, yet recent financials show declining net income and reduced dividends of SEK 0.80 per share for 2024, down from SEK 1.20 previously.
Overview: Norva24 Group AB (Publ) operates in Northern Europe, offering underground infrastructure maintenance services with a market cap of SEK4.18 billion.
Operations: Norva24 Group generates revenue from its underground infrastructure maintenance services in Northern Europe, with a revenue segment of NOK3.63 billion in Waste Management.
Insider Ownership: 10.5%
Earnings Growth Forecast: 21.1% p.a.
Norva24 Group shows promising growth potential with forecasted earnings expected to increase by 21.1% annually, outpacing the Swedish market. Despite a decline in profit margins from 7.2% to 4.9%, revenue is projected to grow at 6.1% per year, faster than the local market average but below high-growth benchmarks. Recent buybacks reflect strategic capital management, while leadership changes may impact future operations as they transition under new interim leadership in Norway following Tore Hansen's departure as CEO of Norva24 Norway.
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:HANZA and OM:NORVA.
