Exploring Three TSX Growth Companies With High Insider Ownership

As the Canadian market experiences signs of stabilization and potential recovery, largely influenced by rate cuts from the Bank of Canada, investors are closely monitoring shifts in economic indicators and market dynamics. In this context, growth companies with high insider ownership on the TSX stand out as potentially resilient choices, given that significant insider stakes often align management’s interests with those of shareholders, fostering a focused approach to navigating uncertain times.

Top 10 Growth Companies With High Insider Ownership In Canada

Name	Insider Ownership	Earnings Growth
Payfare (TSX:PAY)	15%	57.7%
goeasy (TSX:GSY)	21.7%	15.9%
Vox Royalty (TSX:VOXR)	12.4%	77.3%
Aritzia (TSX:ATZ)	19%	51.2%
Allied Gold (TSX:AAUC)	22.5%	68.2%
ROK Resources (TSXV:ROK)	16.6%	159.6%
Aya Gold & Silver (TSX:AYA)	10.2%	51.6%
Ivanhoe Mines (TSX:IVN)	13.1%	65.3%
Silver X Mining (TSXV:AGX)	14.2%	144.2%
Almonty Industries (TSX:AII)	12.3%	105%

Click here to see the full list of 30 stocks from our Fast Growing TSX Companies With High Insider Ownership screener.

Let's explore several standout options from the results in the screener.

Green Thumb Industries

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Green Thumb Industries Inc. operates in the United States, engaging in the manufacturing, distribution, marketing, and sale of cannabis products for both medical and adult use, with a market cap of approximately CA$3.98 billion.

Operations: The company generates revenue primarily through two segments: Retail, which brought in CA$806.38 million, and Consumer Packaged Goods, contributing CA$583.78 million.

Insider Ownership: 10.6%

Earnings Growth Forecast: 23% p.a.

Green Thumb Industries, a Canadian-listed cannabis producer, is actively pursuing growth through strategic mergers, evidenced by its recent bid to merge with U.S.-based Boston Beer Company. This move could enhance market presence and facilitate a U.S. listing. Financially, GTII turned profitable this year with net income rising to US$31.08 million in Q1 2024 from US$9.14 million the previous year. Despite robust earnings growth forecasts and trading below fair value, concerns about low forecasted return on equity might temper investor enthusiasm.

• Navigate through the intricacies of Green Thumb Industries with our comprehensive analyst estimates report here.

• The valuation report we've compiled suggests that Green Thumb Industries' current price could be inflated.

CNSX:GTII Earnings and Revenue Growth as at Jun 2024

Aritzia

Simply Wall St Growth Rating: ★★★★★☆

Overview: Aritzia Inc. is a company that designs, develops, and sells women's apparel and accessories in the United States and Canada, with a market capitalization of approximately CA$4.07 billion.

Operations: The company generates CA$2.33 billion in revenue from its apparel and accessories segment.

Insider Ownership: 19%

Earnings Growth Forecast: 51.2% p.a.

Aritzia, a Canadian retailer, reported a decrease in net income to CAD 78.78 million from CAD 187.59 million year-over-year, with earnings per share also dropping. Despite this downturn, the company anticipates revenue growth between 8% to 12% for fiscal 2025, suggesting resilience and potential recovery. Analysts expect Aritzia's earnings to grow by over 50% annually over the next three years, significantly outpacing the broader Canadian market. However, recent profit margins have contracted from last year's figures.

• Click here and access our complete growth analysis report to understand the dynamics of Aritzia.

• Our valuation report unveils the possibility Aritzia's shares may be trading at a discount.

TSX:ATZ Ownership Breakdown as at Jun 2024

goeasy

Simply Wall St Growth Rating: ★★★★★☆

Overview: goeasy Ltd. operates in Canada, offering non-prime leasing and lending services through its easyhome, easyfinancial, and LendCare brands with a market capitalization of CA$3.24 billion.

Operations: The company generates revenue 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, has seen a 54.3% increase in earnings over the past year with expectations of continued growth at 15.95% annually. Despite high insider ownership, recent insider transactions have not been significant. The company's debt is poorly covered by operating cash flow, raising some concerns about its financial health. However, goeasy's revenue is projected to grow at an impressive rate of 32.7% per year, outpacing the Canadian market significantly. Recent executive appointments and consistent dividend payments highlight strategic leadership and commitment to shareholder returns despite some coverage issues by cash flows.

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

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

TSX:GSY Ownership Breakdown as at Jun 2024

Key Takeaways

• Get an in-depth perspective on all 30 Fast Growing TSX Companies With High Insider Ownership by using our screener here.

• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.

• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

Ready For A Different Approach?

• 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 CNSX:GTII TSX:ATZ and TSX:GSY.

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