Stock Analysis

3 Growth Companies With Insider Ownership And 125% Earnings Growth

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In a week marked by busy earnings reports and economic data, global markets saw mixed performances, with major U.S. indices like the Nasdaq Composite and S&P MidCap 400 experiencing highs before retreating. Amidst this backdrop of cautious optimism and volatility, investors are increasingly drawn to growth companies with strong insider ownership, as these firms often demonstrate robust alignment between management interests and shareholder value—a key consideration in today's fluctuating market environment.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Archean Chemical Industries (NSEI:ACI)22.9%34%
People & Technology (KOSDAQ:A137400)16.4%35.6%
Kirloskar Pneumatic (BSE:505283)30.3%26.3%
Laopu Gold (SEHK:6181)36.4%33.6%
Medley (TSE:4480)34%30.4%
Findi (ASX:FND)34.8%64.8%
Adveritas (ASX:AV1)21.2%144.2%
Plenti Group (ASX:PLT)12.8%107.6%
Brightstar Resources (ASX:BTR)14.8%84.6%
UTI (KOSDAQ:A179900)33.1%134.6%

Click here to see the full list of 1522 stocks from our Fast Growing Companies With High Insider Ownership screener.

Let's take a closer look at a couple of our picks from the screened companies.

Bilia (OM:BILI A)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Bilia AB (publ) is a full-service supplier for car ownership operating in Sweden, Norway, Luxembourg, and Belgium with a market cap of SEK11.76 billion.

Operations: The company's revenue segments include Car - Sweden with SEK19.85 billion, Car - Norway with SEK7.39 billion, Service - Sweden with SEK6.50 billion, Car - Western Europe with SEK3.53 billion, Service - Norway with SEK2.29 billion, Fuel at SEK964 million, and Service - Western Europe at SEK678 million.

Insider Ownership: 16.9%

Earnings Growth Forecast: 24.6% p.a.

Bilia's insider ownership is highlighted by recent buying activity, albeit in modest volumes. Despite a decrease in net profit margin from 2.7% to 1.8%, Bilia remains undervalued, trading at 72.2% below estimated fair value. Earnings are expected to grow significantly at 24.56% annually, surpassing the Swedish market's growth rate of 15.6%. However, its dividend yield of 5.19% isn't well supported by free cash flows, indicating potential sustainability concerns.

OM:BILI A Earnings and Revenue Growth as at Nov 2024

Chipsea Technologies (shenzhen) (SHSE:688595)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Chipsea Technologies (shenzhen) Corp. is a chip design company specializing in ADCs, MCUs, measurement algorithms, and IoT solutions in China with a market cap of CN¥4.93 billion.

Operations: Chipsea Technologies (shenzhen) Corp.'s revenue is primarily derived from its expertise in designing analog-to-digital converters (ADCs), microcontroller units (MCUs), and developing measurement algorithms, alongside providing comprehensive IoT solutions within China.

Insider Ownership: 28.4%

Earnings Growth Forecast: 125.3% p.a.

Chipsea Technologies (Shenzhen) demonstrates strong growth potential with forecasted annual revenue growth of 27.2%, outpacing the Chinese market. Despite reporting a net loss of CNY 114.98 million for the nine months ended September 2024, its earnings are expected to grow by over 125% annually, becoming profitable within three years. However, the company's share price has been highly volatile recently and there is no substantial insider trading activity in the last three months.

SHSE:688595 Ownership Breakdown as at Nov 2024

Ningbo Joy Intelligent Logistics TechnologyLtd (SZSE:301198)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Ningbo Joy Intelligent Logistics Technology Co., Ltd. operates in the logistics technology sector, focusing on intelligent solutions, with a market cap of CN¥1.86 billion.

Operations: The company generates revenue of CN¥343.05 million from its Packaging & Containers segment.

Insider Ownership: 13.6%

Earnings Growth Forecast: 52.7% p.a.

Ningbo Joy Intelligent Logistics Technology Ltd. faces challenges with declining revenue and net income, reporting CNY 255.52 million in sales for the first nine months of 2024, down from CNY 315.66 million a year ago. Despite this, earnings are forecasted to grow significantly at 52.65% annually over the next three years, surpassing market expectations. However, profit margins have decreased to 1.1%, and its share price has been highly volatile recently without substantial insider trading activity noted.

SZSE:301198 Earnings and Revenue Growth as at Nov 2024

Summing It All Up

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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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