Stock Analysis

Three ASX Growth Companies With High Insider Ownership And A 32% Return On Equity

ASX:FLT
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Amidst the mixed sector performance and significant events such as the debut of Bitcoin on the ASX and notable IPOs, the Australian market continues to present varied opportunities for investors. In this context, companies with high insider ownership can be particularly appealing, as they often indicate a strong alignment between company management and shareholder interests, potentially fostering robust growth in challenging market conditions.

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%30.1%
Acrux (ASX:ACR)14.6%115.3%
Doctor Care Anywhere Group (ASX:DOC)28.4%96.4%
Plenti Group (ASX:PLT)12.8%106.4%
Hillgrove Resources (ASX:HGO)10.4%45.4%
Change Financial (ASX:CCA)26.6%85.4%
Botanix Pharmaceuticals (ASX:BOT)11.4%120.9%
Liontown Resources (ASX:LTR)16.4%63.9%
SiteMinder (ASX:SDR)11.3%72.7%

Click here to see the full list of 92 stocks from our Fast Growing ASX Companies With High Insider Ownership screener.

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

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$1.82 billion.

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

Insider Ownership: 12.3%

Return On Equity Forecast: 31% (2026 estimate)

Capricorn Metals, an Australian growth company with high insider ownership, demonstrates a robust forecast with earnings expected to grow by 26.5% per year, outpacing the market's 13.7%. Despite some insider selling over the past three months, revenue is also set to increase by 14.1% annually. However, profit margins have declined from last year's 25.4% to just 5.2%, signaling potential challenges in maintaining profitability amidst growth.

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

Flight Centre Travel Group (ASX:FLT)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Flight Centre Travel Group Limited operates as a travel retailer servicing both leisure and corporate sectors across various regions globally, with a market capitalization of approximately A$4.37 billion.

Operations: The company generates revenue primarily through its leisure and corporate travel services, with A$1.28 billion from leisure and A$1.06 billion from corporate segments.

Insider Ownership: 13.3%

Return On Equity Forecast: 22% (2026 estimate)

Flight Centre Travel Group, trading at a significant discount of 20.8% below its estimated fair value, recently turned profitable. The company's revenue growth is forecasted at 9.7% annually, surpassing the Australian market's average of 5.4%. Additionally, FLT's earnings are expected to increase by 18.8% each year, also outperforming the market prediction of 13.7%. However, its annual profit growth isn't projected to exceed the high threshold of 20%, and there has been no substantial insider buying or selling reported in the past three months.

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

Technology One (ASX:TNE)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Technology One Limited is a company that develops, markets, sells, implements, and supports integrated enterprise business software solutions both in Australia and internationally, with a market capitalization of A$5.96 billion.

Operations: The company generates revenue through three primary segments: Software (A$317.24 million), Corporate (A$83.83 million), and Consulting (A$68.13 million).

Insider Ownership: 12.3%

Return On Equity Forecast: 33% (2027 estimate)

Technology One Limited, with a price-to-earnings ratio of 54.4x, sits below the software industry average of 60.6x, indicating potential value. The company's earnings are expected to grow by 14.3% annually, outpacing the Australian market forecast of 13.7%. While its revenue growth at 11.1% yearly exceeds the national market rate of 5.4%, it does not reach the high growth benchmark of over 20%. Additionally, recent financial results show a solid increase in both revenue and net income year-over-year as of March 2024.

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