Unveiling Three ASX Growth Companies With High Insider Ownership And Up To 24% Earnings Growth

The Australian market has shown resilience with the ASX200 trading above expectations, reflecting a robust performance particularly in the discretionary sector. Amid these market conditions, companies with high insider ownership can be particularly compelling as they often signal confidence from those closest to the company's operations and future. In this context, understanding which growth companies combine strong earnings potential with significant insider stakes could offer valuable insights for investors looking to navigate the current economic landscape.

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%
Hillgrove Resources (ASX:HGO)	10.4%	45.4%
Change Financial (ASX:CCA)	26.6%	85.4%
Plenti Group (ASX:PLT)	12.8%	106.4%
Botanix Pharmaceuticals (ASX:BOT)	11.4%	120.9%
Liontown Resources (ASX:LTR)	16.4%	63.9%

Click here to see the full list of 91 stocks from our Fast Growing ASX Companies With High Insider Ownership screener.

We'll examine a selection from our screener results.

Emerald Resources

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Emerald Resources NL is a company focused on the exploration and development of mineral reserves primarily in Cambodia, with operations extending to Australia, and it has a market capitalization of approximately A$2.48 billion.

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

Insider Ownership: 18.5%

Earnings Growth Forecast: 22.8% p.a.

Emerald Resources, despite some shareholder dilution over the past year, shows promising financial trends. The company's earnings increased by 53.4% last year and are expected to grow at an annual rate of 22.75% over the next three years, outpacing the Australian market's forecasted growth. Additionally, Emerald's revenue growth is projected at 19.4% annually, also above the national average. However, its Return on Equity is anticipated to remain low at 17.8%.

• Take a closer look at Emerald Resources' potential here in our earnings growth report.

• Our valuation report here indicates Emerald Resources may be overvalued.

ASX:EMR Earnings and Revenue Growth as at Jun 2024

Nanosonics

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Nanosonics Limited is an infection prevention company operating both in Australia and internationally, with a market capitalization of approximately A$939.29 million.

Operations: The company generates revenue primarily from its healthcare equipment segment, totaling approximately A$164.07 million.

Insider Ownership: 15.1%

Earnings Growth Forecast: 24.2% p.a.

Nanosonics is trading at a significant discount, priced 28% below its estimated fair value. With insider buying activity in the recent months, though not in large volumes, it signals some confidence among those closest to the company. The firm's revenue growth is projected at 10.1% annually, outpacing the Australian market forecast of 5.3%. Its earnings are expected to increase by 24.2% per year, substantially higher than the market's average of 13.9%. However, its Return on Equity is predicted to be modest at 12.5% in three years' time.

• Dive into the specifics of Nanosonics here with our thorough growth forecast report.

• According our valuation report, there's an indication that Nanosonics' share price might be on the expensive side.

ASX:NAN Earnings and Revenue Growth as at Jun 2024

Technology One

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Technology One Limited is an Australian company that specializes in developing, marketing, selling, implementing, and supporting integrated enterprise business software solutions both domestically and internationally, with a market capitalization of A$5.91 billion.

Operations: The company generates revenue through three primary segments: software (A$317.24 million), corporate (A$83.83 million), and consulting (A$68.13 million).

Insider Ownership: 12.3%

Earnings Growth Forecast: 14.3% p.a.

Technology One, a software firm in Australia, has demonstrated robust financial performance with recent half-yearly earnings showing significant growth: revenue surged to A$240.83 million from A$201.01 million year-over-year, and net income increased to A$48 million from A$41.28 million. Despite a high Price-to-Earnings ratio of 53.9x—below the industry average—the company's earnings are expected to grow by 14.3% annually, outpacing the Australian market forecast of 13.9%. Additionally, its Return on Equity is anticipated to be strong at 32.6% in three years' time.

• Get an in-depth perspective on Technology One's performance by reading our analyst estimates report here.

• In light of our recent valuation report, it seems possible that Technology One is trading beyond its estimated value.

ASX:TNE Earnings and Revenue Growth as at Jun 2024

Make It Happen

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Looking For Alternative Opportunities?

• 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.

Companies discussed in this article include ASX:EMR ASX:NAN and ASX:TNE.

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