Stock Analysis

ASX Growth Companies With High Insider Ownership And Earnings Growth Up To 120%

ASX:CMM
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The Australian market has shown a steady performance, remaining flat over the last week but achieving a 9.9% increase over the past year with earnings expected to grow by 14% annually. In this context, growth companies with high insider ownership can be particularly appealing, as they often signal strong confidence from those who know the company best.

Top 10 Growth Companies With High Insider Ownership In Australia

NameInsider OwnershipEarnings Growth
Hartshead Resources (ASX:HHR)13.9%86.3%
Cettire (ASX:CTT)28.7%26.6%
Acrux (ASX:ACR)14.6%115.3%
Plenti Group (ASX:PLT)12.8%106.4%
Hillgrove Resources (ASX:HGO)10.4%45.4%
Change Financial (ASX:CCA)26.6%76.4%
Botanix Pharmaceuticals (ASX:BOT)11.4%120.9%
Liontown Resources (ASX:LTR)16.4%62.8%
DUG Technology (ASX:DUG)28.1%43.2%
Chrysos (ASX:C79)21.4%63.5%

Click here to see the full list of 90 stocks from our Fast Growing ASX Companies With High Insider Ownership screener.

We're going to check out a few of the best picks from our screener tool.

Botanix Pharmaceuticals (ASX:BOT)

Simply Wall St Growth Rating: ★★★★★★

Overview: Botanix Pharmaceuticals Limited, based in Australia, focuses on the research and development of dermatology and antimicrobial products with a market capitalization of A$574.93 million.

Operations: The company generates revenue primarily from its research and development activities in dermatology and antimicrobial products, totaling A$0.44 million.

Insider Ownership: 11.4%

Earnings Growth Forecast: 120.9% p.a.

Botanix Pharmaceuticals, while still small with annual revenues under A$1 million, is poised for significant growth. The company's earnings are expected to surge by 120.89% annually, outpacing the Australian market's average. Despite recent shareholder dilution, Botanix maintains a robust forecast with revenue growth projected at 120.4% annually—far exceeding the national average of 5.4%. However, financial challenges persist as evidenced by its short cash runway of less than a year.

ASX:BOT Earnings and Revenue Growth as at Jun 2024
ASX:BOT Earnings and Revenue Growth as at Jun 2024

Capricorn Metals (ASX:CMM)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Capricorn Metals Ltd is an Australian company focused on the evaluation, exploration, development, and production of gold properties, with a market capitalization of approximately A$1.85 billion.

Operations: The company generates revenue primarily from its Karlawinda segment, totaling approximately A$356.94 million.

Insider Ownership: 12.3%

Earnings Growth Forecast: 26.5% p.a.

Capricorn Metals has demonstrated a mixed financial performance with recent substantial insider buying, highlighting strong confidence from management. Despite a drop in net profit margins from 25.4% to 5.2% over the past year, earnings are forecast to grow at an annual rate of 26.49%, significantly outpacing the Australian market's average of 13.7%. Revenue growth projections stand at 14.3% annually, also above the national market average of 5.4%. However, one-off items have impacted recent financial results.

ASX:CMM Earnings and Revenue Growth as at Jun 2024
ASX:CMM Earnings and Revenue Growth as at Jun 2024

Temple & Webster Group (ASX:TPW)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Temple & Webster Group Ltd operates as an online retailer specializing in furniture, homewares, and home improvement products across Australia, with a market capitalization of approximately A$1.21 billion.

Operations: The company generates revenue primarily through the online sale of furniture, homewares, and home improvement items, totaling approximately A$442.25 million.

Insider Ownership: 12.9%

Earnings Growth Forecast: 35.1% p.a.

Temple & Webster Group is poised for robust growth, with earnings expected to increase by 35.1% per year, outstripping the Australian market forecast of 13.7%. Revenue is also set to rise significantly at a rate of 20.9% annually, well above the national average of 5.4%. However, its return on equity is predicted to be modest at 19%. Recently, the company announced a share repurchase program aimed at buying back up to A$30 million worth of shares by May 2025, underscoring its commitment to shareholder value amidst expansion efforts.

ASX:TPW Ownership Breakdown as at Jun 2024
ASX:TPW Ownership Breakdown as at Jun 2024

Summing It All Up

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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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