Discover 3 Japanese Growth Companies With Significant Insider Ownership

As Japan's stock markets show modest gains, driven by the Bank of Japan's commitment to monetary policy normalization, investors are increasingly looking for growth opportunities within the region. In this context, companies with significant insider ownership often stand out as they signal confidence from those who know the business best.

Top 10 Growth Companies With High Insider Ownership In Japan

Name	Insider Ownership	Earnings Growth
Micronics Japan (TSE:6871)	15.3%	32.7%
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%
AeroEdge (TSE:7409)	10.7%	25.3%
Soracom (TSE:147A)	16.5%	54.1%

Click here to see the full list of 103 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

Underneath we present a selection of stocks filtered out by our screen.

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 in Japan and internationally with a market cap of ¥2.03 trillion.

Operations: Revenue Segments (in millions of ¥): e-commerce, ¥1,68.54 billion; fintech, ¥7.44 billion; digital content, ¥2.12 billion; communications, ¥3.98 billion

Insider Ownership: 17.3%

Earnings Growth Forecast: 82.9% p.a.

Rakuten Group is forecasted to grow its revenue at 7.6% per year, outpacing the broader Japanese market's 4.3%. Despite high growth expectations, it remains highly volatile and has a low projected Return on Equity of 9.5% in three years. However, with earnings anticipated to grow by 82.87% annually and profitability expected within three years, Rakuten's substantial insider ownership aligns well with its promising growth trajectory despite recent volatility.

• Click here and access our complete growth analysis report to understand the dynamics of Rakuten Group.
• The valuation report we've compiled suggests that Rakuten Group's current price could be inflated.

Shima Seiki Mfg.Ltd (TSE:6222)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Shima Seiki Mfg., Ltd. develops, manufactures, sells, markets, and services computerized flat knitting machines, automatic fabric cutting machines, glove and sock knitting machines, and design systems globally with a market cap of ¥51.50 billion.

Operations: The company's revenue segments include computerized flat knitting machines, automatic fabric cutting machines, glove and sock knitting machines, and design systems in Japan, Europe, the Middle East, Asia, and internationally.

Insider Ownership: 10.4%

Earnings Growth Forecast: 56.9% p.a.

Shima Seiki Mfg. Ltd. is projected to grow its earnings by 56.92% annually, with revenue expected to increase at 13.9% per year, surpassing the broader Japanese market's growth rate of 4.3%. Despite this, the company’s Return on Equity is forecasted to be low at 2.4% in three years. The firm has demonstrated a consistent profit growth of 15.9% annually over the past five years and is anticipated to achieve profitability within three years without any substantial recent insider trading activity reported.

• Take a closer look at Shima Seiki Mfg.Ltd's potential here in our earnings growth report.
• Insights from our recent valuation report point to the potential overvaluation of Shima Seiki Mfg.Ltd shares in the market.

Japan Elevator Service HoldingsLtd (TSE:6544)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Japan Elevator Service Holdings Co., Ltd. (TSE:6544) offers repair, maintenance, and modernization services for elevators and escalators in Japan, with a market cap of ¥243.13 billion.

Operations: The company's revenue segments include a Maintenance Business generating ¥44.27 billion.

Insider Ownership: 23.1%

Earnings Growth Forecast: 18.5% p.a.

Japan Elevator Service Holdings Ltd. is forecast to grow its earnings by 18.49% annually, surpassing the Japanese market's growth rate of 8.5%. The company’s revenue is expected to increase at 11.8% per year, also outpacing the broader market's growth rate of 4.3%. Despite having a high level of debt, analysts agree that the stock price could rise by 20.9%. Recent expansions include new branches and service offices aimed at strengthening customer services across Japan.

• Unlock comprehensive insights into our analysis of Japan Elevator Service HoldingsLtd stock in this growth report.
• Our valuation report unveils the possibility Japan Elevator Service HoldingsLtd's shares may be trading at a premium.

Summing It All Up

• Unlock our comprehensive list of 103 Fast Growing Japanese Companies With High Insider Ownership by clicking here.
• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
• Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

Interested In Other Possibilities?

• 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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