3 High Growth Japanese Stocks With Strong Insider Ownership

Japan’s stock markets have shown mixed performance recently, with the Nikkei 225 Index gaining 0.5% while the broader TOPIX Index declined by 1.0%. This fluctuation comes amid a strengthening yen and expectations of additional rate hikes by the Bank of Japan. In such an environment, identifying growth companies with high insider ownership can be particularly appealing as it often signals confidence in the company’s future prospects and alignment between management and shareholder interests.

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%	61.5%
Kasumigaseki CapitalLtd (TSE:3498)	34.7%	43.5%
Medley (TSE:4480)	34%	30.4%
Kanamic NetworkLTD (TSE:3939)	25%	28.3%
ExaWizards (TSE:4259)	22%	75.2%
Money Forward (TSE:3994)	21.4%	68.1%
Loadstar Capital K.K (TSE:3482)	33.8%	24.3%
AeroEdge (TSE:7409)	10.7%	25.3%
Soracom (TSE:147A)	16.5%	54.1%

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.

UT GroupLtd (TSE:2146)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: UT Group Co., Ltd. (TSE:2146) specializes in the dispatch and outsourcing of permanent employees across various sectors such as manufacturing, design and development, and construction in Japan, with a market cap of ¥104.72 billion.

Operations: The company's revenue segments are composed of ¥66.39 billion from the Area Business, ¥11.86 billion from the Vietnam Business, ¥18.89 billion from the Solution Business, and ¥64.78 billion from the Manufacturing Business (excluding Solution Business).

Insider Ownership: 22.7%

Earnings Growth Forecast: 13% p.a.

UT Group Ltd. stands out among growth companies with high insider ownership in Japan due to its strong financial performance and positive outlook. The company expects net sales of ¥215 billion and an operating profit of ¥13.6 billion for the fiscal year ending March 31, 2025. Despite a volatile share price, UT Group's earnings grew by 153.5% over the past year and are forecast to grow at a rate faster than the market, making it a compelling option for growth-focused investors.

• Unlock comprehensive insights into our analysis of UT GroupLtd stock in this growth report.
• Our valuation report here indicates UT GroupLtd may be undervalued.

BayCurrent Consulting (TSE:6532)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: BayCurrent Consulting, Inc. offers consulting services in Japan and has a market cap of ¥776.82 billion.

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

Insider Ownership: 13.9%

Earnings Growth Forecast: 18.8% p.a.

BayCurrent Consulting exemplifies growth companies with high insider ownership in Japan, demonstrating robust financial health and strong growth prospects. The company’s revenue is forecast to grow at 18.6% per year, outpacing the JP market's 4.3%. Earnings have grown by 16.8% over the past year and are expected to increase by 18.77% annually, surpassing market expectations of 8.6%. Additionally, BayCurrent is trading at a significant discount to its estimated fair value, enhancing its appeal for investors seeking growth opportunities with substantial insider alignment.

• Click to explore a detailed breakdown of our findings in BayCurrent Consulting's earnings growth report.
• In light of our recent valuation report, it seems possible that BayCurrent Consulting is trading beyond its estimated value.

Lasertec (TSE:6920)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Lasertec Corporation designs, manufactures, and sells inspection and measurement equipment in Japan and internationally, with a market cap of ¥2.06 trillion.

Operations: For the fiscal year, the company generated ¥213.51 billion from its inspection and measurement equipment segment.

Insider Ownership: 11.8%

Earnings Growth Forecast: 20.1% p.a.

Lasertec, characterized by high insider ownership, is poised for significant growth with revenue forecasted to grow at 16.7% per year, outpacing the JP market's 4.3%. The company's earnings are expected to increase by 20.1% annually over the next three years. Despite recent volatility in its share price, Lasertec has demonstrated strong financial performance with a 28% earnings growth last year and projected net sales of ¥240 billion for the fiscal year ending June 30, 2025.

• Dive into the specifics of Lasertec here with our thorough growth forecast report.
• According our valuation report, there's an indication that Lasertec's share price might be on the expensive side.

Make It Happen

• Click here to access our complete index of 101 Fast Growing Japanese Companies With High Insider Ownership.
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Want To Explore Some Alternatives?

• 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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