Top Japanese Growth Companies With High Insider Ownership August 2024

Japan’s stock markets have experienced a robust rebound recently, with the Nikkei 225 Index gaining 8.7% and the broader TOPIX Index up 7.9%, driven by better-than-expected economic data and a weakening yen that has benefited exporters. Amid this positive backdrop, investors are increasingly focusing on growth companies with high insider ownership, as these stocks often indicate strong confidence from those closest to the business. In such an environment, companies that combine solid growth prospects with significant insider ownership can be particularly appealing to investors seeking both stability and potential upside.

Top 10 Growth Companies With High Insider Ownership In Japan

Name	Insider Ownership	Earnings Growth
Micronics Japan (TSE:6871)	15.3%	32.9%
Hottolink (TSE:3680)	27%	61.9%
Kasumigaseki CapitalLtd (TSE:3498)	34.7%	43.3%
Medley (TSE:4480)	34%	30.5%
SHIFT (TSE:3697)	35.4%	32.8%
ExaWizards (TSE:4259)	22%	63%
Money Forward (TSE:3994)	21.4%	66.9%
Astroscale Holdings (TSE:186A)	21.3%	90%
Loadstar Capital K.K (TSE:3482)	33.8%	24.3%
AeroEdge (TSE:7409)	10.7%	25.3%

Click here to see the full list of 104 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

Let's dive into some prime choices out of the screener.

Rakuten Group (TSE:4755)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Rakuten Group, Inc. operates in e-commerce, fintech, digital content, and communications sectors serving users both in Japan and internationally with a market cap of ¥2.04 trillion.

Operations: Rakuten Group's revenue segments include e-commerce, fintech, digital content, and communications services provided to users domestically and globally.

Insider Ownership: 17.3%

Rakuten Group, a growth company with high insider ownership in Japan, is expected to see revenue grow at 7.7% per year, outpacing the broader JP market's 4.3%. Despite a highly volatile share price over the past three months, earnings are forecast to grow significantly by 82.86% annually. The company is projected to become profitable within three years, although its return on equity is anticipated to be relatively low at 10.2%.

• Take a closer look at Rakuten Group's potential here in our earnings growth report.
• Upon reviewing our latest valuation report, Rakuten Group's share price might be too optimistic.

BayCurrent Consulting (TSE:6532)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: BayCurrent Consulting, Inc. provides consulting services in Japan and has a market cap of ¥672.58 billion.

Operations: BayCurrent Consulting, Inc. generates revenue through its consulting services in Japan.

Insider Ownership: 13.9%

BayCurrent Consulting is forecasted to see earnings grow at 18.5% annually, outpacing the broader Japanese market's 8.6%. The company trades at a significant discount of 48.5% below its estimated fair value and has a high projected return on equity of 34.7% in three years. Despite no recent insider trading activity, BayCurrent completed a share buyback worth ¥3.60 billion in May 2024, indicating strong confidence from management in the company's future prospects.

• Click here to discover the nuances of BayCurrent Consulting with our detailed analytical future growth report.
• In light of our recent valuation report, it seems possible that BayCurrent Consulting is trading behind its estimated value.

Lasertec (TSE:6920)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Lasertec Corporation designs, manufactures, and sells inspection and measurement equipment both in Japan and internationally, with a market cap of ¥2.59 trillion.

Operations: The company's revenue primarily comes from its inspection and measurement equipment segment, totaling ¥213.51 billion.

Insider Ownership: 11.8%

Lasertec's earnings are projected to grow at nearly 20% annually, outpacing the broader Japanese market. The company boasts high insider ownership, indicating strong internal confidence. Despite recent volatility in its share price, Lasertec's return on equity is forecasted to reach a very high level in three years. Recent board resignations and dividend increases underscore ongoing corporate changes and shareholder value focus. The company's revenue growth is expected to surpass the market average significantly.

• Dive into the specifics of Lasertec here with our thorough growth forecast report.
• According our valuation report, there's an indication that Lasertec's share price might be on the expensive side.

Summing It All Up

• Embark on your investment journey to our 104 Fast Growing Japanese Companies With High Insider Ownership selection here.
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Seeking Other Investments?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• Find companies with promising cash flow potential yet trading below their fair value.

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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