Stock Analysis

3 Japanese Growth Companies With High Insider Ownership Growing Revenues Up To 15%

TSE:4384
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As Japan's stock markets experience a decline, with the Nikkei 225 and TOPIX indices both posting losses, investors are closely monitoring economic indicators such as easing domestic inflation and export trends. In this environment, companies with high insider ownership and robust revenue growth can be appealing to investors seeking stability and potential upside in uncertain times.

Top 10 Growth Companies With High Insider Ownership In Japan

NameInsider OwnershipEarnings Growth
Micronics Japan (TSE:6871)15.3%31.5%
Hottolink (TSE:3680)26.1%61.5%
Kasumigaseki CapitalLtd (TSE:3498)34.7%40.2%
Medley (TSE:4480)34%30.4%
Inforich (TSE:9338)19.1%29.8%
Kanamic NetworkLTD (TSE:3939)25%28.3%
ExaWizards (TSE:4259)22%75.2%
Money Forward (TSE:3994)21.4%71.3%
AeroEdge (TSE:7409)10.7%25.3%
freee K.K (TSE:4478)23.9%74.1%

Click here to see the full list of 102 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

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

Raksul (TSE:4384)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Raksul Inc. operates in Japan, offering printing services, with a market capitalization of ¥74.56 billion.

Operations: The company's revenue is primarily derived from its Raxul segment at ¥47.11 billion and Novacell segment at ¥2.50 billion.

Insider Ownership: 14.2%

Revenue Growth Forecast: 13.5% p.a.

Raksul, a Japanese growth company, shows promising potential with earnings forecasted to grow significantly at 20.5% annually, outpacing the Japanese market average. Despite past shareholder dilution and recent share price volatility, Raksul's revenue is expected to rise faster than the market at 13.5% per year. The company announced a dividend increase to ¥1.70 per share from zero last year, reflecting confidence in its financial health and future prospects amidst ongoing corporate governance changes.

TSE:4384 Earnings and Revenue Growth as at Oct 2024
TSE:4384 Earnings and Revenue Growth as at Oct 2024

Shima Seiki Mfg.Ltd (TSE:6222)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Shima Seiki Mfg., Ltd., with a market cap of ¥39.77 billion, develops, manufactures, sells, markets, and services computerized flat knitting machines, automatic fabric cutting machines, glove and sock knitting machines, and design systems across Japan and globally.

Operations: The company's revenue segments include the development, production, sales, marketing, and servicing of computerized flat knitting machines, automatic fabric cutting machines, glove and sock knitting machines, and design systems across various regions including Japan, Europe, the Middle East, Asia, and other international markets.

Insider Ownership: 10.4%

Revenue Growth Forecast: 15.9% p.a.

Shima Seiki Mfg. Ltd. demonstrates growth potential with earnings forecasted to grow significantly at 65.6% annually, surpassing the Japanese market average of 4.2%. The company is expected to become profitable within three years, which is above average for the market. Despite a low forecasted return on equity of 2.5%, insider ownership remains stable with no substantial selling or buying activity reported recently, indicating confidence in its long-term prospects amidst moderate revenue growth expectations.

TSE:6222 Earnings and Revenue Growth as at Oct 2024
TSE:6222 Earnings and Revenue Growth as at Oct 2024

Japan Elevator Service HoldingsLtd (TSE:6544)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Japan Elevator Service Holdings Co., Ltd. operates in Japan, offering repair, maintenance, and modernization services for elevators and escalators, with a market cap of ¥277.41 billion.

Operations: The company generates revenue primarily from its Maintenance Business, which accounts for ¥44.27 billion.

Insider Ownership: 22.4%

Revenue Growth Forecast: 11.8% p.a.

Japan Elevator Service Holdings Ltd. is poised for growth with earnings forecasted to increase by 18.5% annually, outpacing the Japanese market's average growth rate of 8.7%. Revenue is also expected to grow at 11.8% per year, above the market average of 4.2%. Despite not having significant insider trading activity recently, the company has expanded its domestic presence with new branches and service offices, enhancing its customer service capabilities and potentially supporting future growth initiatives.

TSE:6544 Ownership Breakdown as at Oct 2024
TSE:6544 Ownership Breakdown as at Oct 2024

Summing It All Up

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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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