ASX Growth Stocks With High Insider Ownership Showing 46% Earnings Growth

Simply Wall St.
23 Oct 2024

As the ASX200 edges up by 0.1% to 8,212 points, recovering some of the previous day's losses, market participants are closely watching sectors like Staples and Discretionary for signs of resilience amid inflationary pressures. In this context, growth companies with high insider ownership can be particularly appealing as they often indicate strong internal confidence and alignment with shareholder interests.

Top 10 Growth Companies With High Insider Ownership In Australia

Name Insider Ownership Earnings Growth
Clinuvel Pharmaceuticals (ASX:CUV) 10.4% 27.4%
Genmin (ASX:GEN) 12.3% 117.7%
Catalyst Metals (ASX:CYL) 14.8% 42.9%
AVA Risk Group (ASX:AVA) 15.7% 118.8%
Hillgrove Resources (ASX:HGO) 10.4% 68.9%
Acrux (ASX:ACR) 17.4% 91.6%
Pointerra (ASX:3DP) 20.1% 126.4%
Adveritas (ASX:AV1) 21.2% 144.2%
Plenti Group (ASX:PLT) 12.8% 106.4%
Change Financial (ASX:CCA) 26.2% 102%

Click here to see the full list of 97 stocks from our Fast Growing ASX Companies With High Insider Ownership screener.

Let's explore several standout options from the results in the screener.

Catalyst Metals

Simply Wall St Growth Rating: ★★★★★★

Overview: Catalyst Metals Limited is an Australian company focused on exploring and evaluating mineral properties, with a market cap of A$793.20 million.

Operations: Catalyst Metals Limited generates revenue from its operations in Tasmania and Western Australia, with A$75.08 million and A$243.77 million respectively.

Insider Ownership: 14.8%

Earnings Growth Forecast: 42.9% p.a.

Catalyst Metals, recently added to the S&P/ASX Emerging Companies Index, shows strong growth potential with forecasted earnings and revenue growth significantly outpacing the Australian market. The company reported a substantial increase in sales to A$317.01 million and turned profitable this year with net income of A$23.56 million. However, shareholders have experienced dilution over the past year, which may affect insider ownership dynamics despite its promising financial trajectory.

  • Click to explore a detailed breakdown of our findings in Catalyst Metals' earnings growth report.
  • Upon reviewing our latest valuation report, Catalyst Metals' share price might be too pessimistic.
ASX:CYL Ownership Breakdown as at Oct 2024

Emerald Resources

Simply Wall St Growth Rating: ★★★★★★

Overview: Emerald Resources NL is involved in the exploration and development of mineral reserves in Cambodia and Australia, with a market cap of A$2.86 billion.

Operations: The company's revenue is primarily derived from its Mine Operations segment, which generated A$366.04 million.

Insider Ownership: 18%

Earnings Growth Forecast: 32.2% p.a.

Emerald Resources demonstrates robust growth prospects with forecasted revenue and earnings growth significantly exceeding the Australian market. Despite past shareholder dilution, the company trades below its estimated fair value. Recent earnings show a rise in sales to A$371.07 million and net income to A$84.27 million, indicating strong financial performance. The retirement of influential director Simon Lee may impact strategic direction, but his legacy includes transforming Emerald into a successful gold producer in Cambodia and Australia.

  • Get an in-depth perspective on Emerald Resources' performance by reading our analyst estimates report here.
  • Our comprehensive valuation report raises the possibility that Emerald Resources is priced higher than what may be justified by its financials.
ASX:EMR Earnings and Revenue Growth as at Oct 2024

Guzman y Gomez

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Guzman y Gomez Limited owns, operates, and franchises quick service restaurants in Australia, Singapore, Japan, and the United States with a market cap of A$3.91 billion.

Operations: The company generates revenue primarily from its quick service restaurant operations, amounting to A$364.99 million.

Insider Ownership: 13.1%

Earnings Growth Forecast: 46.7% p.a.

Guzman y Gomez shows promising growth with revenue forecasted to increase by 17.8% annually, outpacing the Australian market. Earnings are projected to grow at 46.69% per year, with profitability expected in three years. Despite a net loss of A$13.75 million for fiscal 2024, recent index inclusions like the S&P/ASX 200 highlight its rising profile. The company reported sales of A$342.21 million for the year ended June 30, 2024, up from A$259.04 million previously.

  • Navigate through the intricacies of Guzman y Gomez with our comprehensive analyst estimates report here.
  • Our valuation report unveils the possibility Guzman y Gomez's shares may be trading at a premium.
ASX:GYG Ownership Breakdown as at Oct 2024

Next Steps

  • Click this link to deep-dive into the 97 companies within our Fast Growing ASX Companies With High Insider Ownership screener.
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Contemplating Other Strategies?

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  • Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
  • Find companies with promising cash flow potential yet trading below their fair value.

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:CYL ASX:EMR and ASX:GYG.

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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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