Stock Analysis

Three Growth Companies With High Insider Ownership And 27% Earnings Growth

BOVESPA:RENT3
Source: Shutterstock

Amidst a backdrop of mixed global market performances and economic indicators, investors continue to navigate through fluctuations in major indices and sectors. In such a landscape, growth companies with high insider ownership can be particularly compelling, as they often signal confidence from those who know the business best—its leaders and founders.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Cettire (ASX:CTT)28.7%26.7%
Medley (TSE:4480)34%28.7%
Global Tax Free (KOSDAQ:A204620)18.1%72.4%
KebNi (OM:KEBNI B)37.8%90.4%
Seojin SystemLtd (KOSDAQ:A178320)29.8%58.7%
Credo Technology Group Holding (NasdaqGS:CRDO)14.4%60.9%
Calliditas Therapeutics (OM:CALTX)11.6%52.9%
Plenti Group (ASX:PLT)12.8%106.4%
Vow (OB:VOW)31.7%97.7%
Adocia (ENXTPA:ADOC)11.9%63%

Click here to see the full list of 1461 stocks from our Fast Growing Companies With High Insider Ownership screener.

Here we highlight a subset of our preferred stocks from the screener.

Localiza Rent a Car (BOVESPA:RENT3)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Localiza Rent a Car S.A. operates in the car and fleet rental sector both within Brazil and globally, with a market capitalization of approximately R$46.63 billion.

Operations: The company generates its revenue primarily from the car and fleet rental sector, totaling approximately R$30.75 billion.

Insider Ownership: 19.1%

Earnings Growth Forecast: 28.2% p.a.

Localiza Rent a Car, despite experiencing shareholder dilution over the past year, is poised for significant growth with earnings expected to increase by 28.16% annually. This growth surpasses the broader Brazilian market's average. However, its dividend sustainability is questionable as it is not well-covered by free cash flows. Additionally, while revenue growth projections of 15.9% annually outpace market averages, they fall short of more aggressive benchmarks. Recent financial results show a robust increase in sales and net income compared to the previous year, underscoring its potential amid financial challenges.

BOVESPA:RENT3 Earnings and Revenue Growth as at Jul 2024
BOVESPA:RENT3 Earnings and Revenue Growth as at Jul 2024

Suning.com (SZSE:002024)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Suning.com Co., Ltd. operates a retail business in China, with a market capitalization of approximately CN¥11.27 billion.

Operations: The company operates in the retail sector across China, with a market capitalization of approximately CN¥11.27 billion.

Insider Ownership: 20.2%

Earnings Growth Forecast: 105.4% p.a.

Suning.com is anticipated to shift into profitability within the next three years, outpacing average market growth. Despite a recent net loss of CNY 96.87 million in Q1 2024, the company's earnings are expected to surge by 105.42% annually. Additionally, Suning.com's revenue growth forecast at 15% per year exceeds China's market average of 13.6%. A recent buyback initiative underscores a commitment to shareholder value, enhancing insider ownership dynamics despite trading at a significant discount compared to its estimated fair value.

SZSE:002024 Ownership Breakdown as at Jul 2024
SZSE:002024 Ownership Breakdown as at Jul 2024

Shin Zu Shing (TWSE:3376)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Shin Zu Shing Co., Ltd. is a company based in Taiwan that specializes in the design and manufacture of precision springs, stamping parts, and other related components, with operations extending to Singapore and China. The company has a market capitalization of approximately NT$43.28 billion.

Operations: Shin Zu Shing generates revenue primarily from pivot products, which contributed NT$10.50 billion, with additional income from MIM products and milled car parts products totaling NT$385.78 million and NT$102.56 million, respectively.

Insider Ownership: 23.1%

Earnings Growth Forecast: 27% p.a.

Shin Zu Shing is poised for robust growth with earnings expected to rise by 27% annually, outstripping the TW market's 18.8%. However, its profit margins have dipped from 13.6% to 9%, reflecting some operational challenges. Recent strategic moves include a private placement aimed at raising TWD 80 million and a dividend cut, signaling potential reinvestment in growth avenues. Despite these promising aspects, the company's share price has been highly volatile recently.

TWSE:3376 Ownership Breakdown as at Jul 2024
TWSE:3376 Ownership Breakdown as at Jul 2024

Key Takeaways

Seeking Other Investments?

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.

New: AI Stock Screener & Alerts

Our new AI Stock Screener scans the market every day to uncover opportunities.

• Dividend Powerhouses (3%+ Yield)
• Undervalued Small Caps with Insider Buying
• High growth Tech and AI Companies

Or build your own from over 50 metrics.

Explore Now for Free

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com