Stock Analysis
3 Japanese Growth Companies With High Insider Ownership
Reviewed by Simply Wall St
Amid a challenging economic environment and significant market volatility, Japan's stock markets have experienced notable declines, with the Nikkei 225 Index falling 4.7% and the broader TOPIX Index down 6.0%. Despite these headwinds, growth companies with high insider ownership can present compelling investment opportunities due to their potential for strong performance driven by aligned management interests. In this article, we will explore three Japanese growth companies where high insider ownership could signal confidence in future prospects.
Top 10 Growth Companies With High Insider Ownership In Japan
| Name | Insider Ownership | Earnings Growth |
| Hottolink (TSE:3680) | 27% | 59.7% |
| Kasumigaseki CapitalLtd (TSE:3498) | 34.8% | 43.3% |
| Micronics Japan (TSE:6871) | 15.3% | 39.8% |
| Kanamic NetworkLTD (TSE:3939) | 25% | 28.9% |
| Medley (TSE:4480) | 34% | 28.7% |
| SHIFT (TSE:3697) | 35.4% | 32.8% |
| ExaWizards (TSE:4259) | 21.8% | 91.1% |
| Money Forward (TSE:3994) | 21.4% | 66.9% |
| Astroscale Holdings (TSE:186A) | 20.9% | 90% |
| freee K.K (TSE:4478) | 32.8% | 72.9% |
Let's dive into some prime choices out of the screener.
Avant Group (TSE:3836)
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Avant Group Corporation, with a market cap of ¥60.52 billion, operates through its subsidiaries to offer accounting, business intelligence, and outsourcing services.
Operations: Avant Group's revenue segments include accounting, business intelligence, and outsourcing services.
Insider Ownership: 33.9%
Return On Equity Forecast: 25% (2027 estimate)
Avant Group, a growth company with high insider ownership in Japan, is forecast to grow earnings at 18.9% annually, outpacing the JP market's 9%. Despite slower revenue growth of 16.9% per year compared to other high-growth firms, its return on equity is expected to reach 25% in three years. Recent developments include a dividend increase from ¥15.00 to ¥19.00 per share and a share buyback totaling ¥477.64 million for 364,100 shares.
- Unlock comprehensive insights into our analysis of Avant Group stock in this growth report.
- Our comprehensive valuation report raises the possibility that Avant Group is priced lower than what may be justified by its financials.
Visional (TSE:4194)
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Visional, Inc., along with its subsidiaries, offers human resources platform solutions in Japan and has a market cap of ¥308.34 billion.
Operations: Visional generates revenue from its human resources platform solutions in Japan.
Insider Ownership: 39.5%
Return On Equity Forecast: 25% (2027 estimate)
Visional's earnings grew 74.3% over the past year and are forecast to grow at 11.2% annually, outpacing the JP market's 9%. Revenue growth is expected at 12.5% per year, surpassing the market average of 4.3%. The stock trades at a significant discount to its estimated fair value and analysts agree on a potential price rise of 20.2%. Recent board meeting addressed revising consolidated earnings forecasts, indicating active financial management.
- Take a closer look at Visional's potential here in our earnings growth report.
- Upon reviewing our latest valuation report, Visional's share price might be too pessimistic.
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 ¥2.45 trillion.
Operations: Lasertec generates revenue from designing, manufacturing, and selling inspection and measurement equipment both domestically and internationally.
Insider Ownership: 12.1%
Return On Equity Forecast: 39% (2027 estimate)
Lasertec's recent board meeting on June 28, 2024, focused on executive officer appointments and title changes. The company's sales for the first three quarters of fiscal year ending June 2024 reached ¥157.20 billion, with the ACTIS Series contributing ¥76.56 billion—far exceeding its previous full-year total of ¥40.44 billion in June 2023. Earnings grew by 28% last year and are forecast to grow at 19.06% annually, outpacing the JP market's average growth rate of 9%. Despite high earnings quality and substantial insider ownership, Lasertec’s share price has been highly volatile over the past three months.
- Click to explore a detailed breakdown of our findings in Lasertec's earnings growth report.
- Our expertly prepared valuation report Lasertec implies its share price may be too high.
Seize The Opportunity
- Embark on your investment journey to our 99 Fast Growing Japanese Companies With High Insider Ownership selection here.
- Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
- Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.
Ready To Venture Into Other Investment Styles?
- 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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About TSE:3836
Avant Group
Through its subsidiaries, provides accounting, business intelligence, and outsourcing services.
