Stock Analysis

PeptiDream Leads Three Japanese Exchange Growth Companies With High Insider Ownership

TSE:4755
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Amidst a backdrop of modest declines in Japan's stock markets and heightened uncertainty around the Bank of Japan's monetary policy directions, investors continue to seek stable opportunities within this complex environment. Companies like PeptiDream, which exhibit high insider ownership, often reflect a commitment by those who know the company best, potentially aligning with investor interests during turbulent times.

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%39.8%
Kasumigaseki CapitalLtd (TSE:3498)34.8%44.6%
ExaWizards (TSE:4259)24.8%91.1%
Soiken Holdings (TSE:2385)19.8%118.4%
AeroEdge (TSE:7409)10.7%28.5%
freee K.K (TSE:4478)24%81%

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

Here we highlight a subset of our preferred stocks from the screener.

PeptiDream (TSE:4587)

Simply Wall St Growth Rating: ★★★★★☆

Overview: PeptiDream Inc. is a biopharmaceutical company focused on the discovery and development of constrained peptides, small molecules, and peptide-drug conjugate therapeutics, with a market capitalization of approximately ¥321.43 billion.

Operations: The firm primarily generates revenue through its biopharmaceutical projects focused on novel peptide therapies and small molecule drugs.

Insider Ownership: 26.1%

Earnings Growth Forecast: 22.3% p.a.

PeptiDream, a Japanese biotech firm, is experiencing robust growth with its revenue and earnings projected to expand at 10.5% and 22.3% per year respectively, outpacing the broader Japanese market. Despite a recent dip in profit margins from 25.9% to 8.7%, the company's strategic advancements, including a significant new collaboration with Novartis and promising early-stage clinical studies in cancer diagnostics, underscore its potential in both development pipelines and market expansion. These elements suggest a dynamic growth trajectory supported by high insider ownership which aligns leadership interests with shareholder value creation.

TSE:4587 Ownership Breakdown as at Jun 2024
TSE:4587 Ownership Breakdown as at Jun 2024

Rakuten Group (TSE:4755)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Rakuten Group, Inc. operates in e-commerce, fintech, digital content, and communications sectors serving customers globally with a market capitalization of approximately ¥1.83 trillion.

Operations: The company generates revenue through its diverse operations in e-commerce, fintech, digital content, and communications sectors.

Insider Ownership: 17.3%

Earnings Growth Forecast: 83.9% p.a.

Rakuten Group, a prominent Japanese e-commerce and internet company, is positioned for significant growth with its revenue expected to increase by 7.4% annually, surpassing the Japanese market's average. Despite challenges in achieving high return on equity, which is projected at a modest 9.1% in three years, the company has demonstrated strong financial maneuvers through recent activities such as securing $1.99 billion from a fixed-income offering. Furthermore, Rakuten anticipates double-digit growth in consolidated operating results for FY2024, excluding its securities business impacted by market fluctuations. This outlook is bolstered by insider confidence reflected in stable ownership rather than recent buying or selling.

TSE:4755 Earnings and Revenue Growth as at Jun 2024
TSE:4755 Earnings and Revenue Growth as at Jun 2024

BayCurrent Consulting (TSE:6532)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: BayCurrent Consulting, Inc. offers consulting services across various sectors in Japan and has a market capitalization of approximately ¥495.07 billion.

Operations: The firm operates in consulting across diverse sectors, generating revenues entirely from these services.

Insider Ownership: 13.9%

Earnings Growth Forecast: 18.4% p.a.

BayCurrent Consulting, a consultancy firm in Japan, is trading at 59.1% below its estimated fair value and has shown a solid performance with earnings growth of 17.2% last year. Expected to outpace the Japanese market, its forecasted annual revenue and profit growth are both above market averages at 18.3% and 18.4%, respectively. Despite high volatility in its share price recently, the company's commitment to shareholder returns is evident from a recent share buyback program totaling ¥3,600 million.

TSE:6532 Ownership Breakdown as at Jun 2024
TSE:6532 Ownership Breakdown as at Jun 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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