Stock Analysis

ASX Growth Companies With High Insider Ownership

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The ASX200 has been down more than 2.2% to around 7,939 points as the market pulls back from yesterday’s record high, pushing us back below the 8000 level. Amid this volatility, identifying growth companies with high insider ownership can provide a measure of confidence for investors seeking stability and potential upside in their portfolios.

Top 10 Growth Companies With High Insider Ownership In Australia

NameInsider OwnershipEarnings Growth
Cettire (ASX:CTT)28.7%26.7%
Telix Pharmaceuticals (ASX:TLX)16.1%38.1%
Acrux (ASX:ACR)14.6%115.3%
Clinuvel Pharmaceuticals (ASX:CUV)13.6%26.8%
Liontown Resources (ASX:LTR)16.4%63.5%
Catalyst Metals (ASX:CYL)17%75.7%
Hillgrove Resources (ASX:HGO)10.4%49.4%
Ora Banda Mining (ASX:OBM)10.2%106.8%
Plenti Group (ASX:PLT)12.8%106.4%
Change Financial (ASX:CCA)26.6%77.9%

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

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

Bell Financial Group (ASX:BFG)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Bell Financial Group Limited (ASX:BFG) offers broking, online broking, corporate finance, and financial advisory services to private, institutional, and corporate clients with a market cap of A$468.29 million.

Operations: Revenue segments (in millions of A$): Retail: A$103.58, Institutional: A$50.36, Products & Services: A$48.10, Technology & Platforms: A$26.20

Insider Ownership: 10.7%

Earnings Growth Forecast: 26.9% p.a.

Bell Financial Group is trading at 25.7% below its estimated fair value, presenting good relative value compared to peers and the industry. Despite a forecasted revenue growth of 5.6% per year, which is slower than desired for high-growth companies, its earnings are expected to grow significantly at 26.95% annually, outpacing the Australian market's average of 13.2%. However, its dividend yield of 4.79% is not well covered by earnings or free cash flows and Return on Equity is projected to be low at 16.3%.

ASX:BFG Ownership Breakdown as at Aug 2024

Mineral Resources (ASX:MIN)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Mineral Resources Limited, with a market cap of A$10.53 billion, operates as a mining services company in Australia, Asia, and internationally through its subsidiaries.

Operations: The company's revenue segments include A$1.60 billion from Lithium, A$2.50 billion from Iron Ore, and A$2.82 billion from Mining Services.

Insider Ownership: 11.6%

Earnings Growth Forecast: 19.3% p.a.

Mineral Resources, with substantial insider ownership, is forecasted to grow earnings at 19.3% annually, outpacing the Australian market's 13.2%. Revenue growth is expected at 10.2% per year, higher than the market's 5%. However, profit margins have declined from last year and interest payments are not well covered by earnings. Trading at a significant discount of 60.3% below estimated fair value suggests potential undervaluation despite mixed financial indicators and high non-cash earnings levels.

ASX:MIN Earnings and Revenue Growth as at Aug 2024

Technology One (ASX:TNE)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Technology One Limited develops, markets, sells, implements, and supports integrated enterprise business software solutions in Australia and internationally with a market cap of A$6.71 billion.

Operations: Revenue segments for Technology One Limited are as follows: Software: A$317.24 million, Corporate: A$83.83 million, and Consulting: A$68.13 million.

Insider Ownership: 12.3%

Earnings Growth Forecast: 14.8% p.a.

Technology One demonstrates strong growth potential with high insider ownership. Earnings are forecast to grow at 14.78% annually, outpacing the Australian market's 13.2%, while revenue is expected to increase by 11.5% per year, faster than the market's 5%. Recent appointments, such as Paul Robson as an independent Non-Executive Director, bolster its strategic transformation and operational efficiency efforts. Despite a high Price-To-Earnings ratio of 61.2x, it remains below the industry average of 63.5x.

ASX:TNE Earnings and Revenue Growth as at Aug 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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