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The Canadian stock market has experienced little movement over the past week but has risen by 13% over the past year, with earnings expected to grow by 15% annually. In this environment, companies demonstrating strong growth potential and significant insider ownership may attract attention due to the internal confidence these factors often reflect. Here are three such Growth Stock companies listed on the Toronto Stock Exchange (TSX) for September 2024.
Curaleaf Holdings (TSX:CURA)
Company Overview: Curaleaf Holdings, Inc. operates in the U.S. cannabis sector, with a market capitalization of CA$2.98 billion.
Operations: Curaleaf’s revenue primarily comes from its activities in cannabis cultivation, production, distribution, and sales, amounting to $1.36 billion.
Insider Ownership: 19.9%
Growth Forecast: 78.2% per annum
Curaleaf Holdings is anticipated to achieve a revenue growth rate of 13% annually, surpassing the Canadian market's average growth rate of 6.9%. The company is projected to reach profitability within three years, despite recent shareholder dilution and a forecasted low return on equity of 18.2%. Recent expansions include the addition of new dispensaries in Florida and Ohio, raising its retail presence to 150 locations across the U.S. The leadership of Boris Jordan as CEO is expected to provide strong strategic guidance.
Stingray Group (TSX:RAY)
Company Overview: Stingray Group Inc. is a global entity in the music, media, and technology sectors, with a market capitalization of CA$521.45 million.
Operations: Stingray Group generates revenue from its two main segments: CA$154.41 million from Radio and CA$201.10 million from Broadcasting and Commercial Music.
Insider Ownership: 25.6%
Growth Forecast: 69.2% per annum
Stingray Group, with high insider ownership and recent insider transactions, is forecast to experience above-average profit growth over the next three years. Despite elevated debt levels and a dividend not fully covered by earnings, the stock is expected to rise by 39.4%. The company’s recent initiatives include launching several FAST channels on The Roku Channel and new music apps via Samsung VXT. The appointment of Eric Boyko as a director further strengthens leadership continuity.
Savaria (TSX:SIS)
Company Overview: Savaria Corporation provides accessibility solutions for the elderly and physically challenged, operating in Canada, the United States, Europe, and other international markets, with a market capitalization of CA$1.43 billion.
Operations: Savaria’s revenue is divided into Patient Care, which contributes CA$183.98 million, and Segment Adjustment, contributing CA$673.74 million.
Insider Ownership: 19.6%
Growth Forecast: 21.5% per annum
Savaria Corporation has demonstrated notable earnings growth of 22.8% over the past year and is forecast to grow profits by 21.48% annually, exceeding the anticipated growth rate of the Canadian market. The stock is trading at a substantial discount to its estimated fair value. Despite some shareholder dilution and significant one-off items affecting results, recent insider activity has shown a net buying trend. Recent earnings reports highlight increased sales and net income compared to the previous year.
