Stock Analysis

High Insider Ownership Growth Companies On The Japanese Exchange June 2024

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As of June 2024, the Japanese stock market exhibits a mixed performance, with the Nikkei 225 showing modest gains while the broader TOPIX Index has slightly declined. This nuanced landscape underscores the importance of selecting stocks with solid fundamentals and strong insider ownership, which can signal confidence in a company's future growth prospects amidst varying market conditions.

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%39.7%
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%80.9%

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

We're going to check out a few of the best picks from our screener tool.

NEXTAGE (TSE:3186)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: NEXTAGE Co., Ltd. operates primarily in the automotive sector, focusing on the sale of new and used cars within Japan, with a market capitalization of approximately ¥193.49 billion.

Operations: The company generates its revenue primarily from the sale of new and used cars.

Insider Ownership: 38.4%

Earnings Growth Forecast: 17.4% p.a.

NEXTAGE, a Japanese company, exhibits a promising growth trajectory with its revenue expected to increase by 11.9% annually, outpacing the local market's 4.1%. Earnings are also set to rise at an impressive rate of 17.39% per year, significantly faster than Japan's average of 8.8%. Despite these strengths, the firm is burdened by high debt levels and has experienced substantial share price volatility recently. Additionally, there is no recent insider trading activity to report.

TSE:3186 Ownership Breakdown as at Jun 2024

PeptiDream (TSE:4587)

Simply Wall St Growth Rating: ★★★★★☆

Overview: PeptiDream Inc. is a biopharmaceutical company focused on developing constrained peptides, small molecules, and peptide-drug conjugate therapeutics, with a market capitalization of approximately ¥292.52 billion.

Operations: The company generates revenue through the development of various therapeutic peptides and small molecule drugs.

Insider Ownership: 26.1%

Earnings Growth Forecast: 22.3% p.a.

PeptiDream, a Japanese biotech firm, is poised for robust growth with projected annual earnings and revenue increases of 22.3% and 10.5%, respectively—both rates surpassing market averages. Despite trading below its estimated fair value and experiencing high share price volatility, the company's recent strategic expansion with Novartis could propel forward its peptide discovery endeavors. Additionally, PeptiDream's clinical study on a novel radiopharmaceutical marks significant progress in cancer diagnostics, enhancing its growth prospects amidst some operational challenges like fluctuating profit margins.

TSE:4587 Ownership Breakdown as at Jun 2024

Sato Holdings (TSE:6287)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Sato Holdings Corporation specializes in the manufacture and sale of labeling products, operating both in Japan and internationally, with a market capitalization of approximately ¥66.95 billion.

Operations: The company's revenue is derived from Auto-ID Solutions, generating ¥82.09 billion in Japan and ¥78.47 billion overseas.

Insider Ownership: 10.1%

Earnings Growth Forecast: 21.9% p.a.

Sato Holdings, a Japanese company with substantial insider ownership, is trading at 59.2% below its estimated fair value, presenting a potentially undervalued opportunity. Its earnings are expected to grow by 21.87% annually over the next three years, outpacing the Japanese market forecast of 8.8%. However, its return on equity is anticipated to remain low at 10.9%, and revenue growth is moderate at 4.4% per year—slightly above the market average of 4.1%. Recent enhancements in RFID technology could bolster its position in retail and healthcare sectors.

TSE:6287 Earnings and Revenue Growth as at Jun 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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