The ASX200 has been up around 0.6% to 7,825 points in early afternoon trade, mirroring Wall Street’s rebound and led by strong performances in the retail sector. In this favorable market environment, growth companies with high insider ownership can be particularly attractive as they often signal confidence from those closest to the business.
Top 10 Growth Companies With High Insider Ownership In Australia
Overview: Capricorn Metals Ltd is an Australian company involved in the evaluation, exploration, development, and production of gold properties with a market cap of A$2.17 billion.
Operations: Revenue Segments: The company generated A$356.94 million from its Karlawinda gold project.
Insider Ownership: 12.3%
Earnings Growth Forecast: 27% p.a.
Capricorn Metals is experiencing significant earnings growth, forecasted at 27% annually, outpacing the Australian market's 12.7%. Despite a lower profit margin this year (5.2%) compared to last year (25.4%), its revenue is expected to grow by 13.6% per year, faster than the market average of 5.1%. The company's Return on Equity is projected to be high at 32.5% in three years, and it trades at a substantial discount of 56.5% below estimated fair value.
Overview: Kogan.com Ltd is an online retailer based in Australia with a market cap of A$405.48 million.
Operations: Kogan.com Ltd generates revenue from its operations in Australia and New Zealand, with A$274.85 million from Kogan Parent in Australia, A$11.39 million from Mighty Ape in Australia, A$142.52 million from Mighty Ape in New Zealand, and A$33.40 million from Kogan Parent in New Zealand.
Insider Ownership: 19.9%
Earnings Growth Forecast: 32% p.a.
Kogan.com, a growth company with high insider ownership in Australia, is forecasted to experience significant earnings growth of 32% annually over the next three years, well above the market's 12.7%. Despite a modest revenue growth forecast of 6.3% per year, which surpasses the Australian market average of 5.1%, Kogan.com recently became profitable and trades at a substantial discount of 77.8% below its estimated fair value.
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$6.91 billion.
Operations: The company's revenue segments are Software (A$317.24 million), Corporate (A$83.83 million), and Consulting (A$68.13 million).
Insider Ownership: 12.3%
Earnings Growth Forecast: 14.8% p.a.
Technology One, with substantial insider ownership, is forecasted to grow revenue by 11.5% annually, outpacing the Australian market's 5.1%. Earnings are expected to rise by 14.8% per year, also above the market average of 12.7%. The recent appointment of Paul Robson as an independent Non-Executive Director brings valuable SaaS expertise and strategic insight. For the half-year ended March 31, 2024, Technology One reported A$240.83 million in revenue and A$48 million in net income.
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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 ASX:CMM ASX:KGN and ASX:TNE.
