Exploring Growth Opportunities: 3 Japanese Stocks With At Least 10% Insider Ownership

Amidst a backdrop of recent declines in Japan's stock markets, influenced by uncertainties around the Bank of Japan's monetary policy and interest rate decisions, investors are keenly observing market dynamics. In such an environment, stocks with high insider ownership can be particularly appealing, as significant insider stakes often signal confidence in the company’s future prospects from those who know it best.

Top 10 Growth Companies With High Insider Ownership In Japan

Name	Insider Ownership	Earnings 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%
Soracom (TSE:147A)	17.2%	54.1%

Click here to see the full list of 99 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 globally with a market capitalization of approximately ¥1.82 trillion.

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

Insider Ownership: 17.3%

Rakuten Group, a notable entity in Japan's e-commerce landscape, demonstrates potential with its insider commitment and strategic financial maneuvers. Recently completing a substantial $1.99 billion fixed-income offering and projecting double-digit growth excluding its volatile securities business, Rakuten is gearing up for profitability within three years. However, its forecasted annual revenue growth of 7.4% trails the more aggressive expansions seen in some peers, and a relatively low expected return on equity at 9.1% tempers optimism slightly.

• Take a closer look at Rakuten Group's potential here in our earnings growth report.
• In light of our recent valuation report, it seems possible that Rakuten Group is trading behind its estimated value.

Shima Seiki Mfg.Ltd (TSE:6222)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Shima Seiki Mfg., Ltd. operates globally, developing, manufacturing, and selling a range of knitting and fabric cutting machinery, including computerized flat knitting machines and design systems, with a market capitalization of approximately ¥58.23 billion.

Operations: The company generates revenue primarily from its flat knitting machine segment at ¥25.88 billion, followed by design system related sales at ¥3.47 billion, and glove and sock knitting machine sales totaling ¥0.45 billion.

Insider Ownership: 10.3%

Shima Seiki Mfg., Ltd. is poised for significant growth with earnings expected to increase by 30.1% annually, outpacing the Japanese market's average. Despite its forecasted revenue growth of 10.5% per year exceeding the national rate, it remains below the high-growth benchmark of 20%. The company recently turned profitable and held its Annual General Meeting on June 26, 2024, discussing financial results and director appointments. However, its projected return on equity is relatively low at 2.9%, indicating potential challenges in maximizing shareholder value.

• Click here and access our complete growth analysis report to understand the dynamics of Shima Seiki Mfg.Ltd.
• Our comprehensive valuation report raises the possibility that Shima Seiki Mfg.Ltd is priced higher than what may be justified by its financials.

Japan Elevator Service HoldingsLtd (TSE:6544)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Japan Elevator Service Holdings Co., Ltd. specializes in the repair, maintenance, and modernization of elevators and escalators across Japan, with a market capitalization of approximately ¥235.20 billion.

Operations: The company generates ¥42.22 billion from its maintenance services for elevators and escalators.

Insider Ownership: 23.4%

Japan Elevator Service Holdings Co., Ltd. is navigating a steady growth trajectory with its earnings forecast to rise by 18.43% annually, surpassing the Japanese market's average growth rate of 8.9%. This performance is complemented by a revenue increase of 12% per year, also above the national market pace of 4.1%. Recent strategic expansions and leadership restructuring, including new service offices and board appointments, signal proactive management aiming to enhance service delivery and market presence. However, while insider ownership remains substantial, recent months have not seen significant buying or selling by insiders.

• Click to explore a detailed breakdown of our findings in Japan Elevator Service HoldingsLtd's earnings growth report.
• The analysis detailed in our Japan Elevator Service HoldingsLtd valuation report hints at an inflated share price compared to its estimated value.

Where To Now?

• Gain an insight into the universe of 99 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.
• Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets.

Ready To Venture Into Other Investment Styles?

• 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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