Exploring Three TSX Growth Companies With High Insider Ownership

As the global markets navigate through a phase of technological advancements and AI-driven growth, the Canadian market remains a pivotal player with promising prospects. Amidst this broader economic backdrop, companies with high insider ownership in Canada stand out as they often signal strong commitment from those at the helm, potentially aligning management’s interests with that of shareholders especially in times of market volatility and expansive growth phases.

Top 10 Growth Companies With High Insider Ownership In Canada

Name	Insider Ownership	Earnings Growth
goeasy (TSX:GSY)	21.7%	15.9%
Payfare (TSX:PAY)	15%	57.7%
Aritzia (TSX:ATZ)	19.1%	51.6%
Allied Gold (TSX:AAUC)	22.4%	68.2%
ROK Resources (TSXV:ROK)	16.6%	159.6%
Aya Gold & Silver (TSX:AYA)	10.2%	51.6%
Silver X Mining (TSXV:AGX)	14.2%	144.2%
Artemis Gold (TSXV:ARTG)	31.8%	45.6%
Ivanhoe Mines (TSX:IVN)	12.4%	37.8%
UGE International (TSXV:UGE)	35.4%	63.5%

Click here to see the full list of 33 stocks from our Fast Growing TSX Companies With High Insider Ownership screener.

Let's dive into some prime choices out of from the screener.

Aritzia

Simply Wall St Growth Rating: ★★★★★☆

Overview: Aritzia Inc. operates as a designer, developer, and retailer of women's apparel and accessories in the United States and Canada, with a market capitalization of approximately CA$3.71 billion.

Operations: The company generates its revenue primarily through the sale of women's apparel, which amounted to CA$2.33 billion.

Insider Ownership: 19.1%

Earnings Growth Forecast: 51.6% p.a.

Aritzia, a Canadian retailer, reported a significant drop in net income to CA$78.78 million from CA$187.59 million year-over-year despite an increase in sales to CA$2.33 billion. The company anticipates revenue growth of 8% to 12% for fiscal 2025, aiming for up to CA$2.62 billion. Despite recent underperformance with a lower profit margin of 3.4%, Aritzia's earnings are expected to surge by approximately 51.62% annually over the next three years, supported by strong insider ownership and consistent share buybacks totaling CA$30 million recently.

• Click here to discover the nuances of Aritzia with our detailed analytical future growth report.

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

TSX:ATZ Earnings and Revenue Growth as at May 2024

goeasy

Simply Wall St Growth Rating: ★★★★★☆

Overview: goeasy Ltd., operating under the easyhome, easyfinancial, and LendCare brands, offers non-prime leasing and lending services in Canada with a market capitalization of CA$2.98 billion.

Operations: The company generates revenue primarily through its easyhome and easyfinancial segments, with CA$153.99 million from leasing services and CA$1.17 billion from lending services.

Insider Ownership: 21.7%

Earnings Growth Forecast: 15.9% p.a.

goeasy Ltd., a Canadian financial services company, recently appointed Patrick Ens as President of its easyfinancial and easyhome brands, signaling strategic leadership enhancements aimed at bolstering its consumer credit services. Despite a slight decrease in quarterly sales to CA$24.74 million from CA$25.57 million year-over-year, goeasy reported robust revenue growth to CA$357.11 million and an increase in net income to CA$58.94 million, reflecting strong operational performance. The company is trading below analyst price targets by 25.6%, suggesting potential undervaluation amid high insider ownership that aligns interests with shareholders but faces challenges with debt coverage by operating cash flow and dividend sustainability due to inadequate cash flows coverage.

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

• Our comprehensive valuation report raises the possibility that goeasy is priced lower than what may be justified by its financials.

TSX:GSY Ownership Breakdown as at May 2024

North American Construction Group

Simply Wall St Growth Rating: ★★★★★☆

Overview: North American Construction Group Ltd. offers mining and heavy civil construction services in Australia, Canada, and the United States, with a market capitalization of approximately CA$0.73 billion.

Operations: The company generates revenue by providing mining and heavy civil construction services across Australia, Canada, and the United States.

Insider Ownership: 11.2%

Earnings Growth Forecast: 44.8% p.a.

North American Construction Group Ltd., a key player in the Canadian construction sector, reported a decrease in Q1 2024 net income to CA$11.37 million from CA$21.85 million year-over-year, despite a rise in sales. The company maintains high insider ownership but faces challenges with interest coverage by earnings. Forecasted revenue growth at 17.4% annually is robust, outpacing the market, and earnings are expected to surge by 44.8% annually over the next three years, indicating potential for significant growth amidst financial pressures.

• Delve into the full analysis future growth report here for a deeper understanding of North American Construction Group.

• In light of our recent valuation report, it seems possible that North American Construction Group is trading behind its estimated value.

TSX:NOA Ownership Breakdown as at May 2024

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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:ATZTSX:GSY TSX:NOA

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