As the Canadian market navigates through a landscape of shifting bond yields and potential rate cuts by the Bank of Canada, investors find themselves weighing the benefits of bonds over cash in pursuit of higher returns. In this environment, growth companies with high insider ownership on the TSX present intriguing opportunities, as strong internal commitment can often signal confidence in a company's future prospects amidst evolving economic conditions.
Top 10 Growth Companies With High Insider Ownership In Canada
Overview: Aya Gold & Silver Inc. is involved in the exploration, evaluation, and development of precious metals projects in Morocco and has a market capitalization of CA$1.40 billion.
Operations: The company generates revenue from the production at the Zgounder Silver Mine in Morocco, amounting to $40.85 million.
Insider Ownership: 10.2%
Earnings Growth Forecast: 96.7% p.a.
Aya Gold & Silver's significant insider ownership aligns with its robust growth prospects, driven by the recent commencement of commercial production at its Zgounder Mine in Morocco. Despite past shareholder dilution, the company is forecast to achieve substantial earnings and revenue growth, outpacing Canadian market averages. Recent high-grade silver drill results support this potential. However, past production delays and current trading below fair value estimates highlight some risks for investors.
Overview: Colliers International Group Inc. offers commercial real estate and investment management services to corporate and institutional clients across the Americas, Europe, the Middle East, Africa, and the Asia Pacific with a market cap of CA$9.86 billion.
Operations: The company's revenue segments include $0.43 million from Corporate and $505.11 million from Investment Management, with a Segment Adjustment of $4.05 billion.
Insider Ownership: 14.1%
Earnings Growth Forecast: 23.5% p.a.
Colliers International Group demonstrates strong growth potential with earnings forecasted to grow significantly, outpacing the Canadian market. Recent board appointments, including John Sullivan, enhance its strategic direction. The company expanded its credit facility to $2.25 billion, providing over $1 billion for growth initiatives despite past shareholder dilution. While insider buying hasn't been substantial recently, Colliers' revenue is expected to grow faster than the market average, supporting its position in the real estate sector.
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$1.42 billion.
Operations: The company's revenue segments include Patient Care, which generated CA$184.01 million, and Segment Adjustment, contributing CA$677.25 million.
Insider Ownership: 17.2%
Earnings Growth Forecast: 31.4% p.a.
Savaria Corporation shows promising growth with earnings expected to grow significantly, surpassing the Canadian market's average. Trading below its fair value estimate, it has seen substantial insider buying recently, indicating confidence in its future prospects. Despite past shareholder dilution and slower revenue growth compared to earnings, Savaria maintains a reliable monthly dividend policy. Recent financial results highlight steady sales and net income increases year-over-year, reinforcing its potential as a growth-oriented company.
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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:AYA TSX:CIGI and TSX:SIS.
