Stock Analysis

Top Growth Companies With High Insider Ownership On Japanese Exchange

TSE:2752
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Japan's stock markets have recently experienced significant declines, with the Nikkei 225 Index falling 4.7% and the broader TOPIX Index down 6.0%, amid a hawkish turn from the Bank of Japan and disappointing U.S. macroeconomic data. Despite these market challenges, growth companies with high insider ownership often present compelling investment opportunities due to their potential for strong performance driven by aligned management interests. In this article, we will explore three standout growth companies listed on Japanese exchanges that boast high insider ownership, highlighting what makes them attractive in today's volatile market environment.

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%43.3%
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%32.8%
ExaWizards (TSE:4259)21.8%91.1%
Money Forward (TSE:3994)21.4%66.8%
Astroscale Holdings (TSE:186A)20.9%90%
Soiken Holdings (TSE:2385)19.8%118.4%

Click here to see the full list of 99 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

Let's explore several standout options from the results in the screener.

Fujio Food Group (TSE:2752)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Fujio Food Group Inc., with a market cap of ¥61.46 billion, operates restaurants both in Japan and internationally.

Operations: Revenue Segments (in millions of ¥): - Restaurant Operations: ¥45,000 - Food Manufacturing: ¥12,500 - Food Sales: ¥8,750 Fujio Food Group generates revenue primarily from restaurant operations at ¥45 billion, food manufacturing at ¥12.50 billion, and food sales at ¥8.75 billion.

Insider Ownership: 29.5%

Fujio Food Group, with substantial insider ownership, is expected to become profitable within the next three years and shows an impressive forecasted earnings growth of 72.84% per year. Trading at 27.9% below its estimated fair value, the company’s revenue is projected to grow at 6.2% annually, outpacing the broader Japanese market's growth rate of 4.1%. Recent analysis indicates no significant insider trading activity over the past three months.

TSE:2752 Ownership Breakdown as at Aug 2024
TSE:2752 Ownership Breakdown as at Aug 2024

Sato Holdings (TSE:6287)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Sato Holdings Corporation manufactures and sells labeling products both in Japan and internationally, with a market cap of ¥62.88 billion.

Operations: The company generates revenue from Auto-ID Solutions in Japan (¥82.09 billion) and overseas (¥78.47 billion).

Insider Ownership: 10.1%

Sato Holdings, with high insider ownership, is leveraging its advanced RFID technology to drive growth across retail, healthcare, and industrial sectors. Recent collaborations, such as with EM Microelectronic for RAINFC labels, enhance its market position. Despite a modest revenue growth forecast of 4.1% annually—slightly above the JP market—its earnings are expected to grow significantly at 20.3% per year. The company also maintains a progressive dividend policy and trades at a substantial discount to fair value estimates.

TSE:6287 Ownership Breakdown as at Aug 2024
TSE:6287 Ownership Breakdown as at Aug 2024

Marvelous (TSE:7844)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Marvelous Inc. (TSE:7844) specializes in the planning, development, production, marketing, and sale of game software for home-use game machines and has a market cap of ¥37.62 billion.

Operations: Marvelous Inc. generates revenue primarily through the planning, development, production, marketing, and sale of game software for home-use game machines.

Insider Ownership: 24.1%

Marvelous Inc. showcases strong insider ownership and is forecasted to grow earnings by 64.51% annually, outpacing the JP market's average growth rate. The company is expected to become profitable within three years, aligning with above-average market growth expectations. Despite a dividend yield of 5.31%, it is not well covered by earnings or free cash flows, which could pose sustainability concerns. Recent Q1 2025 earnings call highlighted ongoing strategic initiatives aimed at bolstering future profitability.

TSE:7844 Ownership Breakdown as at Aug 2024
TSE:7844 Ownership Breakdown as at Aug 2024

Where To Now?

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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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