As we enter February 2025, the Canadian market has seen a modest 3% rise, navigating through stabilized yields and contained inflation rates. In this environment, growth companies with high insider ownership can be particularly appealing as they often indicate strong confidence from those closest to the business, providing a potential buffer against economic uncertainties.
Top 10 Growth Companies With High Insider Ownership In Canada
Overview: Bombardier Inc. is involved in the design, manufacture, and sale of business aircraft and aircraft structural components globally, with a market cap of approximately CA$8.72 billion.
Operations: The company's revenue is primarily derived from its Aviation segment, which generated $8.67 billion.
Insider Ownership: 11.8%
Bombardier's insider ownership and growth potential are under scrutiny. Despite its shares trading significantly below estimated fair value, recent earnings reveal challenges, with net income and profit margins declining compared to the previous year. While revenue growth is projected to lag behind the Canadian market, Bombardier's earnings are expected to grow substantially over the next three years. The company faces financial pressure as interest payments strain earnings coverage, yet it continues expanding service capabilities with strategic investments like the new paint facility at London Biggin Hill.
Overview: Knight Therapeutics Inc. is a company that develops, manufactures, acquires, licenses, markets, and distributes pharmaceutical and consumer health products as well as medical devices globally; it has a market cap of CA$563.65 million.
Operations: The company generates revenue primarily from its Pharmaceuticals segment, which amounts to CA$348.64 million.
Insider Ownership: 22.5%
Knight Therapeutics shows potential with significant insider ownership and strategic expansions. Recent agreements, including exclusive rights to distribute ONICIT® in Latin America and Qelbree's commercialization in Canada, highlight growth initiatives. The stock trades well below its estimated fair value, with earnings forecasted to grow significantly annually. However, revenue growth remains moderate compared to high-growth benchmarks. Despite a low future return on equity forecast, Knight's profitability outlook surpasses market averages over the next three years.
Overview: Ivanhoe Mines Ltd., along with its subsidiaries, focuses on the mining, development, and exploration of minerals and precious metals in Africa, with a market cap of CA$20.25 billion.
Operations: The company's revenue is primarily derived from its Kipushi Properties segment, which generated $40.82 million.
Insider Ownership: 12.4%
Ivanhoe Mines demonstrates growth potential with substantial insider ownership, driven by significant expansions and strategic projects. The company's earnings and revenue are forecasted to grow significantly faster than the Canadian market. Recent technical studies on the Platreef mine indicate strong economic viability, with low cash costs positioning it as a leading platinum-group-metals producer. Despite a decline in annual net income, Ivanhoe's stock trades well below estimated fair value, offering potential upside according to analyst price targets.
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:BBD.B TSX:GUD and TSX:IVN.
