As the Canadian market navigates through uncertainties stemming from new U.S. policies on tariffs and energy, the TSX index has shown resilience with gains since Inauguration Day. In this environment, growth companies with high insider ownership can be appealing to investors as they often indicate confidence in the company's future prospects and alignment of interests between insiders and shareholders.
Top 10 Growth Companies With High Insider Ownership In Canada
Overview: Black Diamond Group Limited rents and sells modular space and workforce accommodation solutions, with a market cap of CA$562.82 million.
Operations: The company's revenue is derived from two main segments: Workforce Solutions, contributing CA$170.76 million, and Modular Space Solutions, generating CA$202.88 million.
Insider Ownership: 26.1%
Earnings Growth Forecast: 24.6% p.a.
Black Diamond Group, while facing a decline in recent quarterly earnings with sales at C$101.19 million and net income at C$7.37 million, shows promising growth potential with expected annual profit increases of 24.6%, outpacing the Canadian market's 15.7%. Despite high debt levels and no substantial insider buying recently, the stock is trading 26.1% below its estimated fair value, suggesting good relative value compared to peers and industry standards.
Overview: Knight Therapeutics Inc. is a company that develops, manufactures, acquires, licenses, markets, and distributes pharmaceutical and consumer health products as well as medical devices globally with a market cap of CA$572.68 million.
Operations: The company's revenue is primarily derived from its pharmaceuticals segment, which generated CA$348.64 million.
Insider Ownership: 22.5%
Earnings Growth Forecast: 173.2% p.a.
Knight Therapeutics, with substantial insider buying recently, is poised for growth as its revenue is forecast to grow at 6.5% annually, outpacing the Canadian market's 4.7%. Despite recent earnings challenges with a net loss of C$6.4 million over nine months and low return on equity forecasts, the company trades significantly below fair value estimates and aims for profitability within three years. Recent product approvals in Canada further bolster its growth prospects in ADHD treatment markets.
Overview: Sangoma Technologies Corporation, along with its subsidiaries, focuses on developing, manufacturing, distributing, and supporting voice and data connectivity components for software-based communication applications both in the United States and internationally, with a market cap of CA$369.91 million.
Operations: The company's revenue is primarily derived from its voice and data connectivity components segment, which generated $244.41 million.
Insider Ownership: 22.8%
Earnings Growth Forecast: 165.7% p.a.
Sangoma Technologies, experiencing more insider buying than selling recently, is forecast to grow earnings by 165.69% annually and expects revenue between $250 million and $260 million for fiscal 2025. Trading at a significant discount to fair value, it aims for profitability in three years. A recent partnership with Sphinx Medical enhances its unified communications platform, potentially boosting efficiency and revenue in healthcare through improved patient relationship management systems.
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 TSX:BDI TSX:GUD and TSX:STC.
