Stock Analysis

3 Swedish Growth Companies With High Insider Ownership And Up To 96% Earnings Growth

OM:SAGA A
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As global markets face economic uncertainties, the Swedish stock market remains a focal point for investors seeking stability and growth. In this environment, companies with high insider ownership can offer attractive opportunities due to their alignment of interests between management and shareholders.

Top 10 Growth Companies With High Insider Ownership In Sweden

NameInsider OwnershipEarnings Growth
CTT Systems (OM:CTT)16.9%24.8%
Truecaller (OM:TRUE B)29.5%21.6%
Fortnox (OM:FNOX)21.1%22.6%
Magle Chemoswed Holding (OM:MAGLE)14.9%72.2%
Biovica International (OM:BIOVIC B)18.8%73.1%
BioArctic (OM:BIOA B)34%98.4%
Yubico (OM:YUBICO)37.5%42.5%
KebNi (OM:KEBNI B)37.8%86.1%
InCoax Networks (OM:INCOAX)19.5%115.5%
C-Rad (OM:CRAD B)16.1%33.9%

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

Let's dive into some prime choices out of the screener.

Fabege (OM:FABG)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Fabege AB (publ) is a Swedish property company specializing in the development, investment, and management of commercial premises with a market cap of SEK30.22 billion.

Operations: Fabege generates revenue from several segments, including Project (SEK36 million), Management (SEK3.13 billion), Refinement (SEK244 million), and Birgers Residence (SEK420 million).

Insider Ownership: 13.8%

Earnings Growth Forecast: 96.4% p.a.

Fabege, a Swedish growth company with high insider ownership, is forecast to see revenue grow at 1.5% per year, slightly above the market average. Despite this modest growth rate, the company is expected to become profitable within three years. Recent earnings reports show improved net income and reduced losses compared to last year. Insider activity has been positive with more shares bought than sold recently, though not in substantial volumes. However, interest payments are not well covered by earnings and return on equity remains low at 4.3%.

OM:FABG Ownership Breakdown as at Sep 2024
OM:FABG Ownership Breakdown as at Sep 2024

AB Sagax (OM:SAGA A)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: AB Sagax (publ) is a property company operating in Sweden, Finland, France, Benelux, Spain, Germany, and other European countries with a market cap of SEK96.71 billion.

Operations: Revenue from rental real estate amounts to SEK4.63 billion.

Insider Ownership: 28.6%

Earnings Growth Forecast: 28.7% p.a.

AB Sagax, with significant insider ownership, is forecast to grow earnings by 28.72% annually over the next three years, outpacing the Swedish market's expected growth. Despite recent shareholder dilution and debt not well covered by operating cash flow, the company reported strong financial performance for Q2 2024 with net income of SEK 978 million compared to SEK 53 million last year. Revenue is projected to grow at a slower rate of 8.8% per year but still faster than the market average.

OM:SAGA A Ownership Breakdown as at Sep 2024
OM:SAGA A Ownership Breakdown as at Sep 2024

Sectra (OM:SECT B)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Sectra AB (publ) offers solutions for medical IT and cybersecurity sectors across Sweden, the United Kingdom, the Netherlands, and the rest of Europe, with a market cap of SEK50.79 billion.

Operations: The company generates revenue primarily from Imaging IT Solutions (SEK2.67 billion), followed by Secure Communications (SEK388.55 million), and Business Innovation (SEK90.77 million).

Insider Ownership: 30.3%

Earnings Growth Forecast: 21.2% p.a.

Sectra, a growth company with high insider ownership, reported strong Q1 2024 results with sales of SEK 736.75 million and net income of SEK 80.4 million, reflecting solid year-over-year growth. Revenue is forecast to grow at 14.2% annually, outpacing the Swedish market's average. Recent successful implementation of Sectra One Cloud in Belgian hospitals highlights its innovative edge and potential for streamlined operations and enhanced collaboration in healthcare IT solutions.

OM:SECT B Earnings and Revenue Growth as at Sep 2024
OM:SECT B Earnings and Revenue Growth as at Sep 2024

Key Takeaways

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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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