Stock Analysis

Flight Centre Travel Group Leads Three ASX Growth Companies With High Insider Ownership

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Amid a backdrop of fluctuating global markets, with the ASX200 poised for a decline following recent downturns in US trading, investors are closely monitoring shifts across various sectors and indices. Such market conditions underscore the importance of focusing on fundamentally strong companies, particularly those like Flight Centre Travel Group, which exhibit high insider ownership—a trait often linked to robust growth potential and alignment of interests between shareholders and management.

Top 10 Growth Companies With High Insider Ownership In Australia

NameInsider OwnershipEarnings Growth
Cettire (ASX:CTT)28.7%26.7%
Acrux (ASX:ACR)14.6%115.3%
Clinuvel Pharmaceuticals (ASX:CUV)13.6%26.8%
Catalyst Metals (ASX:CYL)17.1%77.1%
Hillgrove Resources (ASX:HGO)10.4%109.4%
Biome Australia (ASX:BIO)34.5%114.4%
Ora Banda Mining (ASX:OBM)10.2%96.2%
Liontown Resources (ASX:LTR)16.4%49.5%
Plenti Group (ASX:PLT)12.8%106.4%
Change Financial (ASX:CCA)26.6%76.4%

Click here to see the full list of 86 stocks from our Fast Growing ASX Companies With High Insider Ownership screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Flight Centre Travel Group (ASX:FLT)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Flight Centre Travel Group Limited, operating globally, offers travel retailing services for both leisure and corporate sectors with a market capitalization of approximately A$4.98 billion.

Operations: The company generates revenue primarily through its leisure and corporate travel services, with the leisure segment bringing in A$1.28 billion and the corporate segment contributing A$1.06 billion.

Insider Ownership: 13.3%

Return On Equity Forecast: 22% (2026 estimate)

Flight Centre Travel Group, with its revenue growth forecast at 9.7% annually, is outpacing the Australian market's average of 5.6%. Although this growth rate doesn't reach the high-growth benchmark of 20%, the company's earnings are expected to increase by a robust 19.1% annually, surpassing the market's forecast of 13.5%. Additionally, Flight Centre has become profitable this year and is trading at a significant discount—26.6% below estimated fair value—highlighting potential for investor value despite not having substantial insider transactions in recent months.

ASX:FLT Earnings and Revenue Growth as at Jul 2024

PWR Holdings (ASX:PWH)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: PWR Holdings Limited specializes in the design, prototyping, production, testing, validation, and sale of cooling products and solutions across various global markets including Australia, the US, the UK, Italy, and Germany with a market capitalization of A$1.23 billion.

Operations: PWR Holdings generates revenue through two primary segments: PWR C&R, which contributes A$37.35 million, and PWR Performance Products, accounting for A$104.44 million.

Insider Ownership: 13.4%

Return On Equity Forecast: 31% (2026 estimate)

PWR Holdings shows a promising trend with earnings growth at 15.4% per year, outpacing the Australian market's average of 13.5%. While its revenue growth of 12.9% annually is robust compared to the market's 5.6%, it doesn't meet the high-growth benchmark of 20%. There has been more insider buying than selling recently, though not in large volumes, and no significant insider sales in the past three months. The stock is also trading at a notable discount, valued at 12.5% below its estimated fair value.

ASX:PWH Ownership Breakdown as at Jul 2024

Technology One (ASX:TNE)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Technology One Limited is an enterprise software company that develops, markets, sells, implements, and supports integrated business solutions both in Australia and internationally, with a market capitalization of approximately A$6.19 billion.

Operations: The company generates revenue through three primary channels: software sales contributing A$317.24 million, corporate services adding A$83.83 million, and consulting services at A$68.13 million.

Insider Ownership: 12.3%

Return On Equity Forecast: 33% (2027 estimate)

Technology One, a growth-oriented Australian software company, has demonstrated solid financial performance with half-year revenue rising to A$240.83 million and net income increasing to A$48 million. The company's earnings are forecasted to grow by 14.35% annually, slightly above the Australian market average. Despite a high P/E ratio of 56.5x, it remains below the industry average of 60.8x, suggesting relative undervaluation. Recent executive additions aim to bolster its strategic and operational capabilities in global SaaS markets.

ASX:TNE Earnings and Revenue Growth as at Jul 2024

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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.

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