The Australian market has shown resilience, with the ASX200 closing up 0.58% at 8,343 points after a rate cut by the RBA, highlighting strong performances in the IT and Real Estate sectors. In this environment of shifting interest rates and sectoral growth, companies with high insider ownership often signal confidence from those who know the business best, making them attractive considerations for investors seeking growth opportunities on the ASX.
Top 10 Growth Companies With High Insider Ownership In Australia
Overview: Duratec Limited, listed on the ASX under the ticker DUR, specializes in the assessment, protection, remediation, and refurbishment of steel and concrete infrastructure across Australia with a market capitalization of A$396.25 million.
Operations: The company's revenue segments include Energy (A$62.54 million), Defence (A$193.48 million), Buildings & Facades (A$113.64 million), and Mining & Industrial (A$144.05 million).
Insider Ownership: 31.2%
Return On Equity Forecast: 35% (2027 estimate)
Duratec shows potential as a growth company with high insider ownership in Australia. Its earnings are forecast to grow at 15.46% annually, outpacing the Australian market's average of 11.7%. Despite trading at A$23.4% below its estimated fair value, the stock is expected to rise by 22.7%, according to analysts. Although revenue growth is moderate at 9.4% per year, it's still above the market average of 5.5%.
Overview: PWR Holdings Limited specializes in the design, production, and sale of cooling products and solutions across various international markets, with a market cap of A$703.95 million.
Operations: The company's revenue segments consist of PWR C&R at A$46.48 million and PWR Performance Products at A$109.04 million.
Insider Ownership: 13.3%
Return On Equity Forecast: 26% (2027 estimate)
PWR Holdings demonstrates potential for growth, with insiders significantly increasing their holdings over the last three months. Despite a recent dip in net income to A$4.08 million, forecasts suggest robust annual earnings growth of 24.7%, surpassing the Australian market average. Revenue is expected to grow at 13.5% annually, and the stock trades at 20.5% below its estimated fair value, indicating possible undervaluation amidst high insider confidence and anticipated financial improvement.
Overview: Telix Pharmaceuticals Limited is a commercial-stage biopharmaceutical company that develops and commercializes therapeutic and diagnostic radiopharmaceuticals for cancer and rare diseases across Australia, Belgium, Japan, Switzerland, and the United States with a market cap of A$8.57 billion.
Operations: The company's revenue is derived from three main segments: Therapeutics (A$9.35 million), Precision Medicine (A$771.11 million), and Manufacturing Solutions (A$2.75 million).
Insider Ownership: 14.9%
Return On Equity Forecast: 28% (2027 estimate)
Telix Pharmaceuticals, a growth-oriented company in the radiopharmaceutical sector, has seen substantial insider selling recently. Despite this, it projects strong financial performance with earnings expected to grow at 33.2% annually and revenue at 19.5%, both outpacing the Australian market averages. The recent marketing authorizations for its prostate cancer imaging agent Illuccix® in multiple countries bolster its international presence and potential revenue streams, while trading significantly below estimated fair value suggests possible undervaluation.
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:DUR ASX:PWH and ASX:TLX.