Amidst ongoing uncertainties in the Canadian market, influenced by potential tariffs and political shifts, investors are adopting a more cautious stance. While the TSX has shown slight gains, the focus on growth companies with high insider ownership becomes particularly relevant as these firms often demonstrate strong alignment between management and shareholder interests, potentially offering resilience in volatile times.
Top 10 Growth Companies With High Insider Ownership In Canada
Overview: Aritzia Inc., along with its subsidiaries, designs, develops, and sells apparel and accessories for women in the United States and Canada, with a market capitalization of approximately CA$5.96 billion.
Operations: The company generates revenue primarily from its apparel segment, which accounted for CA$2.52 billion.
Insider Ownership: 17.6%
Earnings Growth Forecast: 41.1% p.a.
Aritzia demonstrates strong growth potential with earnings forecasted to grow significantly at 41.1% annually, outpacing the Canadian market. Despite a recent CAD 66.36 million equity offering, insider ownership remains substantial with more shares bought than sold over three months. The company reported robust Q3 results, with net income rising to CAD 74.07 million from CAD 43.09 million year-over-year, reflecting its effective growth strategy amidst trading below fair value estimates and analyst expectations for price appreciation.
Overview: Stingray Group Inc. is a global music, media, and technology company with a market cap of CA$563.84 million.
Operations: The company generates revenue from two primary segments: Radio, contributing CA$131.18 million, and Broadcasting and Commercial Music, accounting for CA$243.37 million.
Insider Ownership: 25.7%
Earnings Growth Forecast: 79.6% p.a.
Stingray Group exhibits potential with insider ownership remaining strong despite high debt levels. Recent earnings showed a rise in net income to C$15.68 million from C$9.07 million year-over-year, and the company is trading below fair value estimates. While revenue growth is slower than the market at 4.5% annually, profitability is expected within three years, aligning with above-average market growth forecasts and analyst expectations for price appreciation by 37.7%.
Overview: Robex Resources Inc. is involved in the exploration, development, and production of gold in West Africa with a market cap of CA$419.34 million.
Operations: The company generates revenue of CA$152.71 million from its gold mining operations in West Africa.
Insider Ownership: 25.7%
Earnings Growth Forecast: 141.5% p.a.
Robex Resources is positioned for significant growth, with revenue forecasted to increase by 53.2% annually, outpacing the Canadian market. The company recently secured a US$105 million debt facility to fund its Kiniero Gold Project in Guinea, aiming for first gold pour by late 2025. Despite past shareholder dilution, Robex trades below fair value estimates and is expected to become profitable within three years, supported by high insider ownership and strategic project developments.
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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.
Companies discussed in this article include TSX:ATZ TSX:RAY.A and TSXV:RBX.
