3 Japanese Insider-Owned Growth Stocks With Earnings Up To 83%

Japan’s stock markets have shown modest gains recently, with the Nikkei 225 Index rising 0.8% and the broader TOPIX Index up 0.2%, amid speculation about the Bank of Japan's monetary policy adjustments. As core consumer price inflation continues to accelerate, investors are closely monitoring growth companies with high insider ownership for potential opportunities. In this environment, stocks that combine robust earnings growth with significant insider ownership can be particularly compelling, as they often indicate strong internal confidence in the company's future prospects.

Top 10 Growth Companies With High Insider Ownership In Japan

Name	Insider Ownership	Earnings Growth
Micronics Japan (TSE:6871)	15.3%	32.7%
Hottolink (TSE:3680)	27%	61.9%
Kasumigaseki CapitalLtd (TSE:3498)	34.7%	43.3%
Medley (TSE:4480)	34%	30.5%
Kanamic NetworkLTD (TSE:3939)	25%	28.3%
SHIFT (TSE:3697)	35.4%	32.1%
ExaWizards (TSE:4259)	22%	63%
Money Forward (TSE:3994)	21.4%	66.9%
Astroscale Holdings (TSE:186A)	21.3%	90%
AeroEdge (TSE:7409)	10.7%	22.1%

Click here to see the full list of 101 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

Let's review some notable picks from our screened stocks.

Rakuten Group (TSE:4755)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Rakuten Group, Inc. operates in e-commerce, fintech, digital content, and communications across Japan and internationally with a market cap of ¥2.15 trillion.

Operations: The company's revenue segments are comprised of Mobile at ¥382.95 million, Fin Tech at ¥772.29 million, and Internet Services at ¥1.24 billion.

Insider Ownership: 17.3%

Earnings Growth Forecast: 83.3% p.a.

Rakuten Group is expected to see its earnings grow by 83.28% annually and become profitable within the next three years, which outpaces average market growth. While revenue growth is forecasted at 7.6% per year, higher than the JP market's 4.3%, its share price has been highly volatile recently. Insider ownership remains substantial with no significant insider trading over the past three months, indicating confidence in future performance despite low return on equity forecasts (9.7%).

• Click here and access our complete growth analysis report to understand the dynamics of Rakuten Group.
• Our comprehensive valuation report raises the possibility that Rakuten Group is priced higher than what may be justified by its financials.

Union Tool (TSE:6278)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Union Tool Co. engages in the production and sale of cutting tools, linear motion products, and metal machining equipment in Japan and internationally, with a market cap of ¥96.57 billion.

Operations: Union Tool Co.'s revenue segments include ¥19.84 billion from Japan, ¥15.05 billion from Asia, ¥2.17 billion from Europe, and ¥1.84 billion from North America.

Insider Ownership: 39.2%

Earnings Growth Forecast: 21.5% p.a.

Union Tool Co. expects significant earnings growth of 21.45% annually, outpacing the JP market's 8.5%. Revenue is forecasted to grow at 8.4% per year, also above market average but slower than its earnings growth. Recent guidance projects net sales of ¥30 billion and operating profit of ¥6.40 billion for FY2024, with a dividend increase reflecting confidence in future performance despite recent share price volatility and no significant insider trading activity in the past three months.

• Unlock comprehensive insights into our analysis of Union Tool stock in this growth report.
• The valuation report we've compiled suggests that Union Tool's current price could be inflated.

BayCurrent Consulting (TSE:6532)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: BayCurrent Consulting, Inc. provides consulting services in Japan and has a market cap of ¥692.15 billion.

Operations: BayCurrent Consulting, Inc. generates revenue through its consulting services in Japan.

Insider Ownership: 13.9%

Earnings Growth Forecast: 18.6% p.a.

BayCurrent Consulting's revenue is forecast to grow at 18.5% annually, significantly outpacing the JP market's 4.3%. Earnings are projected to increase by 18.6% per year, also exceeding the market average of 8.5%. Despite trading at a substantial discount (47.3%) below its estimated fair value, there has been no significant insider trading activity in the past three months. The company's Return on Equity is expected to reach a high of 34.7% within three years.

• Get an in-depth perspective on BayCurrent Consulting's performance by reading our analyst estimates report here.
• Our expertly prepared valuation report BayCurrent Consulting implies its share price may be lower than expected.

Taking Advantage

• Explore the 101 names from our Fast Growing Japanese Companies With High Insider Ownership screener here.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Curious About Other Options?

• 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.

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