The ASX200 has been up 0.6% at 8,173 points in early afternoon trade, with the Aussie market climbing this morning despite Wall Street’s overnight slide. Back home, all sectors are in the green with Utilities and Telecommunication leading the way. In such a resilient market environment, growth companies with high insider ownership can offer unique investment opportunities as they often signal strong confidence from those who know the business best.
Top 10 Growth Companies With High Insider Ownership In Australia
Overview: Chrysos Corporation Limited, with a market cap of A$638.27 million, develops and supplies mining technology.
Operations: Chrysos generates A$45.36 million in revenue from its mining services segment.
Insider Ownership: 17.5%
Chrysos Corporation Limited, recently added to the S&P Global BMI Index, reported significant revenue growth for the full year ending June 30, 2024 with A$48.17 million compared to A$28.41 million a year ago despite a net loss of A$0.704 million. The company is forecast to achieve high annual profit and revenue growth over the next three years, with expected annual revenue growth of 28.3% and earnings projected to grow at 48.34% per year, though shareholders experienced dilution in the past year.
Overview: Mineral Resources Limited, with a market cap of A$8.05 billion, operates as a mining services company in Australia, Asia, and internationally through its subsidiaries.
Operations: Mineral Resources Limited generates revenue from several segments including Energy (A$16 million), Lithium (A$1.41 billion), Iron Ore (A$2.58 billion), Mining Services (A$3.38 billion), and Other Commodities (A$19 million).
Insider Ownership: 11.7%
Mineral Resources Limited, a growth company with high insider ownership, is forecast to achieve significant earnings growth of 38.3% per year, outpacing the Australian market's 12.3%. Despite trading at 55% below its estimated fair value and insiders buying more shares recently, the company faces challenges such as lower profit margins (2.4%) compared to last year (5.1%) and insufficient earnings coverage for interest payments. Recent earnings reported A$5.28 billion in sales but a net income drop to A$125 million from A$243 million last year.
Overview: SiteMinder Limited (ASX:SDR) develops, markets, and sells online guest acquisition platforms and commerce solutions for accommodation providers in Australia and internationally, with a market cap of A$1.51 billion.
Operations: Revenue from the company's software and programming segment amounted to A$190.84 million.
Insider Ownership: 11.2%
SiteMinder, with high insider ownership, has shown robust revenue growth, reporting A$190.67 million for FY2024 compared to A$151.38 million last year. Despite a net loss of A$25.13 million, this is an improvement from the previous year's A$49.3 million loss. The company's earnings are forecast to grow 60.31% annually and it is expected to become profitable within three years, outpacing market growth rates while trading 25.7% below its estimated fair value.
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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:C79 ASX:MIN and ASX:SDR.
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