As the Canadian market navigates a period of cautious optimism, with the TSX only 4% off its record high thanks to strong performances in sectors like materials, investors are keenly observing developments that could influence future growth. In such an environment, companies with high insider ownership often stand out, as this can signal confidence in their long-term potential and alignment with shareholder interests.
Top 10 Growth Companies With High Insider Ownership In Canada
Overview: Canfor Corporation is an integrated forest products company operating in the United States, Asia, Canada, Europe, and internationally with a market cap of CA$1.57 billion.
Operations: The company's revenue is primarily derived from its Lumber segment at CA$4.58 billion and Pulp & Paper segment at CA$798.60 million.
Insider Ownership: 22.5%
Canfor Corporation exhibits strong insider ownership with substantial recent insider buying and no significant selling, indicating confidence in future prospects. Despite a current net loss, Canfor is expected to become profitable over the next three years with earnings forecasted to grow significantly at 74.21% annually. The company trades at good value compared to peers, and its revenue growth of 6% per year outpaces the Canadian market average. Additionally, a share repurchase program may enhance shareholder value.
Overview: Savaria Corporation offers accessibility solutions for the elderly and physically challenged individuals across Canada, the United States, Europe, and internationally, with a market cap of CA$1.23 billion.
Operations: The company's revenue segments consist of CA$193.88 million from Patient Care and CA$673.88 million from Accessibility, which includes Adapted Vehicles.
Insider Ownership: 17.3%
Savaria demonstrates strong insider confidence with substantial recent buying and no significant selling. Its earnings are forecasted to grow significantly at 22.4% annually, outpacing the Canadian market's growth expectations. Despite slower revenue growth of 5.5% per year, Savaria trades at a considerable discount to its estimated fair value, suggesting potential upside according to analysts' price targets. Recent earnings reports show improved profitability with net income rising from C$37.84 million to C$48.51 million year-over-year.
Overview: VersaBank offers a range of banking products and services in Canada and the United States, with a market cap of CA$494.94 million.
Operations: VersaBank generates revenue primarily from its Digital Banking Canada segment, which accounts for CA$98.06 million, and its DRTC segment, encompassing cybersecurity services and financial technology development, contributing CA$9.71 million.
Insider Ownership: 10.4%
VersaBank's growth prospects are underscored by a forecasted 32.5% annual revenue increase, significantly outpacing the Canadian market. Earnings are expected to grow at an impressive 53.51% annually, with substantial insider buying recently indicating strong internal confidence. Despite past shareholder dilution, VersaBank trades at over 50% below its estimated fair value. The recent announcement of a share buyback program further reflects management's commitment to enhancing shareholder value amidst declining quarterly earnings and net income figures.
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:CFP TSX:SIS and TSX:VBNK.
