Stock Analysis

High Insider Ownership Growth Companies On The Japanese Exchange In July 2024

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As of July 2024, the Japanese stock market has shown a retreat from its recent record highs, influenced by speculation around foreign exchange interventions aimed at supporting the yen. This shift highlights the intricate balance between domestic economic policies and global market dynamics. In this context, companies with high insider ownership can be particularly compelling, as such stakes often align leadership interests closely with company success, potentially offering a layer of stability amid broader market volatility.

Top 10 Growth Companies With High Insider Ownership In Japan

NameInsider OwnershipEarnings Growth
Hottolink (TSE:3680)27%59.7%
Kasumigaseki CapitalLtd (TSE:3498)34.8%42.9%
Medley (TSE:4480)34%28.7%
Micronics Japan (TSE:6871)15.3%39.8%
Kanamic NetworkLTD (TSE:3939)25%28.9%
SHIFT (TSE:3697)35.4%32.5%
ExaWizards (TSE:4259)21.9%91.1%
Money Forward (TSE:3994)21.4%66.9%
Astroscale Holdings (TSE:186A)20.9%90%
Soiken Holdings (TSE:2385)19.8%118.4%

Click here to see the full list of 96 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Plus Alpha ConsultingLtd (TSE:4071)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Plus Alpha Consulting Co., Ltd. specializes in providing marketing solutions and has a market capitalization of approximately ¥86.53 billion.

Operations: The firm focuses on delivering marketing solutions.

Insider Ownership: 39.5%

Earnings Growth Forecast: 21% p.a.

Plus Alpha ConsultingLtd, a growth-focused firm in Japan with high insider ownership, shows promising financial indicators despite some challenges. The company's revenue is expected to grow at 15.9% annually, outpacing the Japanese market average of 4.4%. Earnings are also forecast to increase significantly by 21% per year, well above the market's 9%. However, shareholder dilution has occurred over the past year and the stock price has been highly volatile recently. Despite these concerns, Plus Alpha is trading at a substantial 44.4% below its estimated fair value and boasts an impressive projected Return on Equity of 28.3% in three years' time.

TSE:4071 Earnings and Revenue Growth as at Jul 2024

JTOWER (TSE:4485)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: JTOWER Inc. specializes in infrastructure sharing services across Japan, with a market capitalization of approximately ¥43.19 billion.

Operations: The company's revenue is derived from infrastructure sharing services across Japan.

Insider Ownership: 26%

Earnings Growth Forecast: 64.1% p.a.

JTOWER Inc., a company in Japan with high insider ownership, is navigating mixed financial waters. Despite a challenging forecast that includes a net loss, the firm's revenue growth is expected to surpass the Japanese market average significantly at 16.8% annually. Recent strategic shifts include discontinuing a development project with Foxconn due to delays and shifting focus towards more immediate market needs in 5G technologies. These moves reflect JTOWER's responsive approach to evolving market dynamics and its commitment to long-term growth strategies.

TSE:4485 Ownership Breakdown as at Jul 2024

en-japan (TSE:4849)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: en-japan inc. operates in the human resources services sector both in Japan and globally, with a market capitalization of approximately ¥109.72 billion.

Operations: The company generates revenue from its human resources services both domestically and internationally.

Insider Ownership: 14.7%

Earnings Growth Forecast: 17% p.a.

en-japan inc., a Japanese firm with substantial insider ownership, shows a balanced growth outlook despite some challenges. The company's revenue is expected to grow at 8% annually, outpacing the national average of 4.4%. Although its earnings growth projection of 17% per year is robust, it falls short of being categorized as high. Additionally, the firm maintains consistent dividends but struggles with coverage from earnings and cash flows. Its Return on Equity is anticipated to be strong at 24.1% in three years, trading significantly below its estimated fair value by 43.8%, highlighting potential undervaluation concerns amidst steady financial performance.

TSE:4849 Earnings and Revenue Growth as at Jul 2024

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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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