Stock Analysis

3 Japanese Stocks With High Insider Ownership And Up To 25% Revenue Growth

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Japan's stock markets have recently experienced a downturn, with the Nikkei 225 and TOPIX indices posting significant losses. Despite this, certain growth companies with high insider ownership continue to attract investor interest due to their potential for robust revenue growth. In the current market environment, stocks with strong insider ownership can be particularly appealing as they often indicate confidence from those closest to the company's operations. This article explores three Japanese stocks that boast high insider ownership and up to 25% revenue growth, highlighting their potential resilience amid broader market fluctuations.

Top 10 Growth Companies With High Insider Ownership In Japan

NameInsider OwnershipEarnings Growth
Micronics Japan (TSE:6871)15.3%32.7%
Hottolink (TSE:3680)27%61.5%
Kasumigaseki CapitalLtd (TSE:3498)34.7%43.5%
Medley (TSE:4480)34%30.4%
Kanamic NetworkLTD (TSE:3939)25%28.3%
ExaWizards (TSE:4259)22%63%
Money Forward (TSE:3994)21.4%68.1%
Astroscale Holdings (TSE:186A)21.3%90%
AeroEdge (TSE:7409)10.7%25.3%
Soracom (TSE:147A)16.5%54.1%

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.

Loadstar Capital K.K (TSE:3482)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Loadstar Capital K.K. engages in real estate investment business in Japan and has a market cap of ¥37.15 billion.

Operations: The company's revenue segments include ¥29.40 billion from its Real Estate Related Business.

Insider Ownership: 33.8%

Revenue Growth Forecast: 21.9% p.a.

Loadstar Capital K.K. demonstrates significant growth potential with forecasted revenue growth of 21.9% per year and earnings expected to grow at 24.3% annually, outpacing the broader Japanese market. Despite a volatile share price and debt concerns, it trades at a substantial discount to its estimated fair value. Recent board decisions include issuing stock options to employees, indicating confidence in future performance and alignment with shareholder interests.

TSE:3482 Ownership Breakdown as at Sep 2024

Tri Chemical Laboratories (TSE:4369)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Tri Chemical Laboratories Inc. specializes in chemical products for semiconductors, coating, optical fibers, solar cells, and compound semiconductors with a market cap of ¥102.04 billion.

Operations: The High-Purity Chemical Compound Business for Manufacturing Semiconductors generates ¥13.60 billion in revenue.

Insider Ownership: 17.4%

Revenue Growth Forecast: 25.8% p.a.

Tri Chemical Laboratories is poised for substantial growth, with revenue expected to rise 25.8% annually, far surpassing the broader Japanese market. Earnings are forecasted to grow significantly at 36% per year. Despite a highly volatile share price recently, the stock trades at a notable discount to its estimated fair value. Recent corporate guidance anticipates net sales of ¥17 billion and an operating profit of ¥3.9 billion for FY2025, reinforcing strong growth prospects amidst high insider ownership.

TSE:4369 Earnings and Revenue Growth as at Sep 2024

BayCurrent Consulting (TSE:6532)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: BayCurrent Consulting, Inc. offers consulting services in Japan and has a market cap of ¥732.82 billion.

Operations: BayCurrent Consulting, Inc. generates revenue through its consulting services in Japan, with a market cap of ¥732.82 billion.

Insider Ownership: 13.9%

Revenue Growth Forecast: 18.6% p.a.

BayCurrent Consulting is forecast to grow its revenue at 18.6% annually, outpacing the broader Japanese market's 4.2%. Earnings are expected to increase by 18.77% per year, also surpassing market averages. The stock trades at a substantial discount to its estimated fair value and boasts high insider ownership, which can align management interests with shareholders. Despite no recent insider trading activity, the company’s robust growth prospects make it an intriguing consideration in this sector.

TSE:6532 Ownership Breakdown as at Sep 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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