Stock Analysis

UT GroupLtd Leads Three Japanese Exchange Growth Companies With High Insider Ownership

Published

Amid a backdrop of mixed performances in global markets, Japan's stock market has shown resilience with a modest uptick in the Nikkei 225 Index, reflecting cautious optimism among investors. In this context, companies like UT Group Ltd that combine robust growth potential with high insider ownership may offer appealing opportunities for those looking to engage with the Japanese market.

Top 10 Growth Companies With High Insider Ownership In Japan

NameInsider OwnershipEarnings Growth
SHIFT (TSE:3697)35.4%26.8%
Kanamic NetworkLTD (TSE:3939)25%28.9%
Hottolink (TSE:3680)27%57.3%
Medley (TSE:4480)34%28.7%
Micronics Japan (TSE:6871)15.3%39.9%
Kasumigaseki CapitalLtd (TSE:3498)34.8%44.6%
ExaWizards (TSE:4259)24.8%91.1%
Soiken Holdings (TSE:2385)19.8%118.4%
Soracom (TSE:147A)17.2%54.1%
freee K.K (TSE:4478)24%81%

Click here to see the full list of 100 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

Here's a peek at a few of the choices from the screener.

UT GroupLtd (TSE:2146)

Simply Wall St Growth Rating: ★★★★★☆

Overview: UT Group Co., Ltd. operates in Japan, specializing in the dispatch and outsourcing of permanent employees across various sectors including manufacturing, design and development, and construction, with a market capitalization of approximately ¥119.30 billion.

Operations: UT Group's revenue is derived from its Area Business (¥63.52 billion), Foreign Operation (¥10.91 billion), Solution Business (¥17.89 billion), Engineering Business (¥9.30 billion), and Manufacturing Business excluding Solution Business (¥65.46 billion).

Insider Ownership: 22.8%

Earnings Growth Forecast: 23.9% p.a.

UT Group Ltd., trading at 13% below our estimate of its fair value, is poised for significant growth with earnings expected to increase by 23.94% per year. Despite a high insider ownership, the company's dividend sustainability is questionable as it is not well covered by cash flows. Recent initiatives like the launch of a new career support service through JOBPAL indicate proactive management in enhancing value and service offerings. However, revenue growth projections (14.8% per year) lag behind some market expectations, highlighting potential areas for improvement in scaling operations efficiently.

TSE:2146 Earnings and Revenue Growth as at Jun 2024

Enplas (TSE:6961)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Enplas Corporation, with a market cap of ¥69.75 billion, engages in the manufacturing and sale of semiconductor and automobile parts, optical communication devices, and life science related products across global markets.

Operations: The company generates revenue from the production and sale of semiconductor components, automobile parts, optical communication devices, and life science products.

Insider Ownership: 24.1%

Earnings Growth Forecast: 23.2% p.a.

Enplas, trading at 26.7% below our estimate of its fair value, shows promising growth prospects with earnings forecasted to increase by 23.21% per year. Despite a highly volatile share price over the past three months, its revenue is expected to grow at 9.2% annually, outpacing the Japanese market's average of 4.1%. However, it falls short of achieving high insider buying or selling in recent months and lacks substantial data on forecasted Return on Equity for the next three years.

TSE:6961 Ownership Breakdown as at Jun 2024

WealthNavi (TSE:7342)

Simply Wall St Growth Rating: ★★★★★☆

Overview: WealthNavi Inc. operates as a technology company in Japan, providing an online platform for asset and risk management with a market capitalization of approximately ¥81.80 billion.

Operations: The company generates its revenue primarily through an online platform offering asset and risk management services.

Insider Ownership: 18.1%

Earnings Growth Forecast: 68.4% p.a.

WealthNavi is poised for robust growth with its earnings expected to surge by 68.4% annually, significantly outpacing the Japanese market's average. Despite a forecast of low return on equity at 12.7% in three years, the company's revenue growth projection stands strong at 21.5% per year. Recent initiatives include launching an online insurance advisory service and expanding its robo-advisor offerings, enhancing its product suite for wealth management and insurance solutions tailored for working families.

TSE:7342 Ownership Breakdown as at Jun 2024

Where To Now?

Want To Explore Some Alternatives?

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.

Valuation is complex, but we're here to simplify it.

Discover if Enplas might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

Access Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com