Exploring ASX Growth Companies With High Insider Ownership: Emerald Resources And Two More

The Australian market has shown robust performance, rising 1.5% over the last week and achieving an 8.7% increase over the past year with earnings expected to grow by 14% annually. In this thriving environment, stocks like Emerald Resources that combine growth potential with high insider ownership may offer appealing opportunities for investors looking to align with the interests of company leadership.

Top 10 Growth Companies With High Insider Ownership In Australia

Name	Insider Ownership	Earnings Growth
Hartshead Resources (ASX:HHR)	13.9%	86.3%
Cettire (ASX:CTT)	28.7%	29.9%
Gratifii (ASX:GTI)	15.6%	112.4%
Acrux (ASX:ACR)	14.6%	115.3%
Doctor Care Anywhere Group (ASX:DOC)	28.4%	96.4%
Alpha HPA (ASX:A4N)	28.3%	95.9%
Hillgrove Resources (ASX:HGO)	10.4%	45.4%
Liontown Resources (ASX:LTR)	16.4%	63.9%
Plenti Group (ASX:PLT)	12.6%	68.5%
Chrysos (ASX:C79)	21.4%	57.5%

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

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

Emerald Resources (ASX:EMR)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Emerald Resources NL is a company focused on the exploration and development of mineral reserves in Cambodia and Australia, with a market capitalization of approximately A$2.57 billion.

Operations: The company generates its revenue primarily from mine operations, totaling approximately A$339.32 million.

Insider Ownership: 18.5%

Earnings Growth Forecast: 22.8% p.a.

Emerald Resources, an Australian growth company with high insider ownership, reported a substantial increase in sales and net income for the half-year ending December 2023, with sales rising to A$176.75 million and net income to A$46.87 million. The company's earnings are expected to grow by 22.76% annually over the next three years, outpacing the Australian market's forecast growth. Despite this strong performance and significant undervaluation at 71.9% below fair value, shareholder dilution has occurred over the past year, and its forecasted Return on Equity is considered low at 17.9%.

• Get an in-depth perspective on Emerald Resources' performance by reading our analyst estimates report here.
• Insights from our recent valuation report point to the potential undervaluation of Emerald Resources shares in the market.

Mineral Resources (ASX:MIN)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Mineral Resources Limited is a diversified mining services company operating in Australia, Asia, and internationally, with a market capitalization of approximately A$15.30 billion.

Operations: The company generates revenue from lithium (A$1.60 billion), iron ore (A$2.50 billion), and mining services (A$2.82 billion).

Insider Ownership: 11.6%

Earnings Growth Forecast: 29.2% p.a.

Mineral Resources, an Australian growth company with high insider ownership, faces mixed financial indicators. While its revenue is set to outpace the market with a 10.7% annual increase, its profit margins have declined from last year's 16.3% to 7.9%. However, earnings are expected to surge by 29.2% annually over the next three years, significantly above the market average of 13.7%. The stock is currently undervalued by 28.8%, despite concerns about its ability to cover interest payments with earnings.

• Take a closer look at Mineral Resources' potential here in our earnings growth report.
• Upon reviewing our latest valuation report, Mineral Resources' share price might be too optimistic.

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 approximately A$5.81 billion.

Operations: The company generates revenue through three primary segments: 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%

Earnings Growth Forecast: 13.8% p.a.

Technology One, an Australian software company, demonstrates solid growth with a price-to-earnings ratio below the industry average at 53.1x. Its earnings have expanded by 13.1% over the past year and are projected to grow by 13.77% annually, slightly above the national market forecast of 13.7%. Recent financial results show a robust half-year performance with revenue up to A$240.83 million from A$201.01 million, and net income increasing to A$48 million from A$41.28 million previously.

• Delve into the full analysis future growth report here for a deeper understanding of Technology One.
• Our comprehensive valuation report raises the possibility that Technology One is priced higher than what may be justified by its financials.

Make It Happen

• Click here to access our complete index of 90 Fast Growing ASX Companies With High Insider Ownership.
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Ready To Venture Into Other Investment Styles?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• 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.

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