As the Canadian market continues to ride a wave of optimism, buoyed by recent rate cuts and strong corporate earnings, the TSX has reached all-time highs, reflecting broader trends seen in global markets. In this environment of growth and cautious optimism, stocks with high insider ownership often attract attention for their potential alignment between management interests and shareholder value.
Top 10 Growth Companies With High Insider Ownership In Canada
Overview: goeasy Ltd. operates in Canada, offering non-prime leasing and lending services through its easyhome, easyfinancial, and LendCare brands, with a market cap of CA$3.03 billion.
Operations: The company's revenue is primarily derived from its Easyfinancial segment, which generated CA$1.24 billion, and its Easyhome segment, which contributed CA$154.10 million.
Insider Ownership: 21.2%
Earnings Growth Forecast: 17.1% p.a.
goeasy demonstrates strong growth potential with forecasted revenue growth of 31.6% annually, outpacing the Canadian market. Despite significant insider selling recently, its high insider ownership aligns management interests with shareholders. The company is trading at a good value compared to peers and industry benchmarks, with analysts expecting a 28.8% price increase. Recent leadership changes and board appointments bring strategic expertise, potentially enhancing operational efficiency amid ambitious revenue targets reaching up to C$1.95 billion by 2026.
Overview: North American Construction Group Ltd. offers mining and heavy civil construction services to the resource development and industrial construction sectors in Australia, Canada, and the United States, with a market cap of CA$679.89 million.
Operations: The company's revenue is derived from providing services in mining and heavy civil construction across the resource development and industrial construction sectors in Australia, Canada, and the United States.
Insider Ownership: 11.6%
Earnings Growth Forecast: 35.6% p.a.
North American Construction Group showcases strong growth potential with earnings forecasted to grow significantly at 35.6% annually, surpassing the Canadian market's average. Insiders have been buying shares recently, indicating confidence in the company's future. Despite a decline in profit margins and challenges covering interest payments, the company trades below fair value estimates and offers promising revenue growth projections between C$1.4 billion and C$1.5 billion for 2024, supported by recent sales increases.
Overview: Nuvei Corporation offers payment technology solutions to merchants and partners across various regions including North America, Europe, the Middle East and Africa, Latin America, and the Asia Pacific, with a market cap of CA$6.36 billion.
Operations: The company's revenue from providing payment technology solutions to its clients amounts to $1.31 billion.
Insider Ownership: 20.1%
Earnings Growth Forecast: 96.7% p.a.
Nuvei is experiencing substantial growth, with earnings projected to increase by 96.72% annually and expected profitability within three years, surpassing market averages. Recent partnerships, such as with Fintech360 for advanced payment solutions in the forex B2B sector and Scanco Software for ERP integration, highlight its strategic expansion efforts. Despite a recent decline in net income to US$3.47 million from US$9.92 million year-over-year, Nuvei's revenue continues to grow steadily at 12.5% annually above the Canadian market average.
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:GSY TSX:NOA and TSX:NVEI.
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