Stock Analysis

High Insider Ownership In Growth Companies Like Goodwill E-Health Info Plus Two More

TSE:4477
Source: Shutterstock

As global markets show signs of resilience with U.S. indexes nearing record highs and a strong labor market driving positive sentiment, investors are increasingly focusing on growth companies with significant insider ownership. In this context, stocks like Goodwill E-Health Info highlight the potential advantages of having insiders who are deeply invested in the company's success, as they can align management's interests closely with those of shareholders amidst evolving economic conditions.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Kirloskar Pneumatic (BSE:505283)30.3%26.3%
SKS Technologies Group (ASX:SKS)32.4%24.8%
Archean Chemical Industries (NSEI:ACI)22.9%41.3%
Laopu Gold (SEHK:6181)36.4%34%
Medley (TSE:4480)34%31.7%
Findi (ASX:FND)34.8%71.5%
Global Tax Free (KOSDAQ:A204620)19.9%78.4%
Plenti Group (ASX:PLT)12.8%120.1%
Fulin Precision (SZSE:300432)13.6%66.7%
UTI (KOSDAQ:A179900)33.1%134.6%

Click here to see the full list of 1524 stocks from our Fast Growing Companies With High Insider Ownership screener.

Let's review some notable picks from our screened stocks.

Goodwill E-Health Info (SHSE:688246)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Goodwill E-Health Info Co., Ltd. focuses on the research and development of medical information software in China, with a market cap of CN¥3.99 billion.

Operations: The company generates revenue from its medical information software development activities in China.

Insider Ownership: 20.3%

Revenue Growth Forecast: 23.7% p.a.

Goodwill E-Health Info has high insider ownership, aligning management interests with shareholders. Despite a recent net loss of CNY 41.26 million for the first nine months of 2024, its revenue is forecast to grow at 23.7% annually, surpassing market expectations. The company is expected to achieve profitability within three years, though its share price remains volatile and return on equity projections are modest at 7.3%.

SHSE:688246 Ownership Breakdown as at Nov 2024
SHSE:688246 Ownership Breakdown as at Nov 2024

LEM Holding (SWX:LEHN)

Simply Wall St Growth Rating: ★★★★★☆

Overview: LEM Holding SA, along with its subsidiaries, offers solutions for measuring electrical parameters across various regions including China, Japan, South Korea, India, Southeast Asia, Europe, the Middle East, Africa, NAFTA and Latin America with a market cap of CHF910.01 million.

Operations: Revenue segments for LEM Holding SA encompass solutions for measuring electrical parameters across China, Japan, South Korea, India, Southeast Asia, Europe, the Middle East, Africa, NAFTA and Latin America.

Insider Ownership: 29.9%

Revenue Growth Forecast: 11.4% p.a.

LEM Holding's insider ownership supports alignment with shareholder interests, although its financial position is strained by high debt levels. The company's earnings are forecast to grow significantly at 36.9% annually, outpacing the Swiss market, despite recent declines in sales (CHF 156.55 million) and net income (CHF 8.58 million). Trading well below fair value estimates and analysts predict a potential price rise of 65.6%, though profit margins have decreased from last year.

SWX:LEHN Earnings and Revenue Growth as at Nov 2024
SWX:LEHN Earnings and Revenue Growth as at Nov 2024

BASEInc (TSE:4477)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: BASE, Inc. is involved in the planning, development, and operation of web services in Japan with a market cap of ¥38.79 billion.

Operations: The company's revenue is derived from three main segments: BASE Business generating ¥8.65 billion, PAY.JP Business contributing ¥5.25 billion, and YELL BANK Business with ¥743 million.

Insider Ownership: 16%

Revenue Growth Forecast: 18.6% p.a.

BASE Inc. has become profitable this year, with earnings expected to grow significantly at 39% annually, outpacing the Japanese market's growth rate. Despite a highly volatile share price recently, BASE Inc.'s revenue is forecast to rise 18.6% annually, faster than the broader market's growth of 4.2%. The company shows no substantial insider trading activity over the past three months and will report Q3 results on November 6, 2024.

TSE:4477 Earnings and Revenue Growth as at Nov 2024
TSE:4477 Earnings and Revenue Growth as at Nov 2024

Next Steps

Curious About Other Options?

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.

Valuation is complex, but we're here to simplify it.

Discover if BASEInc might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

Access Free Analysis

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