The Swedish market has been buoyed by reassuring growth and inflation data, with the pan-European STOXX Europe 600 Index reaching record highs. This positive economic backdrop sets the stage for investors to explore high-growth companies with significant insider ownership, which can be a strong indicator of confidence in a company's future prospects. In this article, we will discuss three Swedish stocks that not only exhibit robust growth potential but also have substantial insider ownership, suggesting alignment between management and shareholder interests.
Top 10 Growth Companies With High Insider Ownership In Sweden
Overview: Humble Group AB (publ) refines, develops, and distributes fast-moving consumer products in Sweden and internationally with a market cap of SEK5.46 billion.
Operations: The company's revenue segments include Future Snacking (SEK950 million), Sustainable Care (SEK2.30 billion), Quality Nutrition (SEK1.53 billion), and Nordic Distribution (SEK2.67 billion).
Insider Ownership: 13%
Earnings Growth Forecast: 78.3% p.a.
Humble Group, a Swedish growth company with high insider ownership, reported Q2 2024 sales of SEK 1.86 billion and net income of SEK 32 million. For the first half of 2024, sales reached SEK 3.70 billion with a net income of SEK 55 million. Recent amendments to credit facilities increased available funds by SEK 300 million to support expansion. Forecasts indicate revenue growth at an annual rate of 11.5%, outpacing the market average, and profitability within three years.
Overview: Nolato AB (publ) develops, manufactures, and sells plastic, silicone, and thermoplastic elastomer products for various sectors including medical technology, pharmaceuticals, consumer electronics, telecom, automotive, hygiene, and other industrial markets globally with a market cap of SEK15.07 billion.
Operations: Medical Solutions revenue for Nolato is SEK5.34 billion.
Insider Ownership: 28.9%
Earnings Growth Forecast: 23.2% p.a.
Nolato AB's recent earnings report shows stable performance with Q2 2024 sales at SEK 2.44 billion and net income at SEK 169 million, up from SEK 155 million a year ago. Insider ownership remains strong, with more shares bought than sold in the past three months. Despite a low forecasted return on equity (14.6%), Nolato's revenue and earnings are expected to grow faster than the Swedish market at annual rates of 5.9% and 23.2%, respectively, although its dividend track record is unstable.
Overview: Pandox AB (publ) is a hotel property company that owns, develops, and leases hotel properties globally, with a market cap of SEK35.92 billion.
Operations: Revenue from Pandox AB's business operations is derived from Own Operation (SEK3.27 billion) and Rental Agreement (SEK3.82 billion).
Insider Ownership: 10.9%
Earnings Growth Forecast: 22.3% p.a.
Pandox AB, with significant insider ownership, is experiencing strong earnings growth, forecasted at 22.34% annually, outpacing the Swedish market. Recent Q2 2024 results showed revenue of SEK 1.87 billion and net income of SEK 704 million, both up from last year. However, profit margins have declined to 7%, and the dividend yield of 2.05% is not well covered by earnings. Despite substantial insider selling recently, Pandox is negotiating a potential MSEK 3,000 hotel portfolio acquisition in London to boost future growth.
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 OM:HUMBLE OM:NOLA B and OM:PNDX B.
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