3 Japanese Growth Stocks With Insider Ownership Expecting Up To 32% Earnings Growth

Japan’s stock markets have shown mixed performance recently, with the Nikkei 225 Index gaining 0.5% while the broader TOPIX Index declined by 1.0%. Amid this backdrop, expectations of additional rate hikes by the Bank of Japan and a stronger yen are influencing market dynamics. In such an environment, growth companies with high insider ownership can be particularly appealing as they often indicate strong confidence from those closest to the business. Here are three Japanese growth stocks that not only boast significant insider ownership but are also expecting earnings growth of up to 32%.

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%	61.5%
Kasumigaseki CapitalLtd (TSE:3498)	34.7%	43.5%
Medley (TSE:4480)	34%	30.4%
Kanamic NetworkLTD (TSE:3939)	25%	28.3%
ExaWizards (TSE:4259)	14.7%	75.2%
Money Forward (TSE:3994)	21.4%	68.1%
Loadstar Capital K.K (TSE:3482)	33.8%	24.3%
AeroEdge (TSE:7409)	10.7%	25.3%
Soracom (TSE:147A)	16.5%	54.1%

Click here to see the full list of 101 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

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

Qol Holdings (TSE:3034)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Qol Holdings Co., Ltd., with a market cap of ¥52.06 billion, operates dispensing pharmacies and business process outsourcing contracting businesses in Japan.

Operations: The company's revenue segments include the Pharmacy Business, which generated ¥166.73 billion, and Segment Adjustment, amounting to ¥30.95 billion.

Insider Ownership: 11.5%

Earnings Growth Forecast: 32% p.a.

Qol Holdings, a growth company with high insider ownership in Japan, is expected to see earnings grow at 32% annually, significantly outpacing the market's 8.7%. While revenue growth is forecasted at 11.9%, slower than top-tier growth companies but still above the JP market average of 4.3%, it trades at good value compared to peers and industry benchmarks. Despite low anticipated return on equity (18.4%), it offers a reliable dividend yield of 2.44%.

• Take a closer look at Qol Holdings' potential here in our earnings growth report.
• The analysis detailed in our Qol Holdings valuation report hints at an deflated share price compared to its estimated value.

World (TSE:3612)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: World Co., Ltd. (TSE:3612) operates through its subsidiaries to plan, manufacture, retail, sell, and import/export apparel and fashion products both in Japan and internationally, with a market cap of ¥64.05 billion.

Operations: World Co., Ltd.'s revenue segments include planning, manufacturing, retailing, selling, and importing/exporting apparel and fashion products both domestically in Japan and internationally.

Insider Ownership: 14.7%

Earnings Growth Forecast: 23.6% p.a.

World's earnings are projected to grow significantly at 23.6% annually over the next three years, outpacing the Japanese market's 8.7%. Although revenue growth is forecasted at a modest 5.4%, it remains above the market average of 4.3%. The stock trades at a substantial discount, being valued at 81.5% below its estimated fair value, despite having a high level of debt and an unstable dividend track record.

• Navigate through the intricacies of World with our comprehensive analyst estimates report here.
• Our valuation report here indicates World may be undervalued.

Plus Alpha ConsultingLtd (TSE:4071)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Plus Alpha Consulting Co., Ltd. provides marketing solutions and has a market cap of ¥88.31 billion.

Operations: HR Solutions generated ¥9.27 billion in revenue for the company.

Insider Ownership: 39.5%

Earnings Growth Forecast: 21.3% p.a.

Plus Alpha Consulting Ltd. is expected to see its earnings grow significantly at 21.3% annually, outpacing the Japanese market's 8.7%. Despite recent shareholder dilution and a highly volatile share price over the past three months, it trades at nearly half of its estimated fair value. Revenue growth is projected at 16.1% per year, faster than the market average of 4.3%, with analysts forecasting a stock price increase of 53.3%.

• Click to explore a detailed breakdown of our findings in Plus Alpha ConsultingLtd's earnings growth report.
• According our valuation report, there's an indication that Plus Alpha ConsultingLtd's share price might be on the cheaper side.

Next Steps

• Click this link to deep-dive into the 101 companies within our Fast Growing Japanese Companies With High Insider Ownership screener.
• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
• Enhance your investing ability with the Simply Wall St app and enjoy free access to essential market intelligence spanning every continent.

Curious About Other Options?

• 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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