Japanese Growth Companies With High Insider Ownership August 2024

In August 2024, Japan's stock markets experienced significant volatility, with the Nikkei 225 Index falling by 4.7% and the broader TOPIX Index down by 6.0%, partly due to disappointing U.S. macroeconomic data and a rebounding yen affecting export-oriented companies' earnings outlooks. Despite these challenges, growth companies with high insider ownership can offer unique investment opportunities as they often demonstrate strong commitment from their leadership and potential for long-term growth. Identifying such stocks in the current market requires careful consideration of factors like consistent performance, strategic positioning in growing industries, and robust financial health amidst economic uncertainties.

Top 10 Growth Companies With High Insider Ownership In Japan

Name	Insider Ownership	Earnings Growth
Hottolink (TSE:3680)	27%	59.7%
Kasumigaseki CapitalLtd (TSE:3498)	34.8%	43.3%
Micronics Japan (TSE:6871)	15.3%	39.8%
Medley (TSE:4480)	34%	28.7%
Kanamic NetworkLTD (TSE:3939)	25%	28.9%
SHIFT (TSE:3697)	35.4%	32.8%
ExaWizards (TSE:4259)	21.8%	91.1%
Money Forward (TSE:3994)	21.4%	66.8%
Astroscale Holdings (TSE:186A)	20.9%	90%
AeroEdge (TSE:7409)	10.7%	28.5%

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

Below we spotlight a couple of our favorites from our exclusive screener.

Fujio Food Group (TSE:2752)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Fujio Food Group Inc. operates restaurants in Japan and internationally, with a market cap of ¥61.50 billion.

Operations: The company generates revenue from its restaurant operations both domestically and internationally.

Insider Ownership: 29.5%

Return On Equity Forecast: N/A (2027 estimate)

Fujio Food Group is expected to become profitable within the next three years, with earnings forecasted to grow 72.84% annually. Despite this, its revenue growth of 6.2% per year is slower than the desired 20%, though it surpasses the Japanese market average of 4.2%. The stock trades at a significant discount, approximately 28.2% below its estimated fair value, and shows no substantial insider trading activity over the past three months.

• Take a closer look at Fujio Food Group's potential here in our earnings growth report.
• Insights from our recent valuation report point to the potential overvaluation of Fujio Food Group shares in the market.

Avant Group (TSE:3836)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Avant Group Corporation, with a market cap of ¥54.58 billion, operates through its subsidiaries to offer accounting, business intelligence, and outsourcing services.

Operations: The company generates revenue through its subsidiaries by offering services in accounting, business intelligence, and outsourcing.

Insider Ownership: 33.9%

Return On Equity Forecast: 25% (2027 estimate)

Avant Group is trading at 60.6% below its estimated fair value, indicating potential undervaluation. The company’s earnings are forecast to grow by 18.9% annually, outpacing the Japanese market average of 8.9%. Revenue is expected to increase by 16.9% per year, also above the market's growth rate of 4.2%. Recent buybacks totaling ¥477.64 million for 364,100 shares suggest confidence in future performance despite no significant insider trading activity recently noted.

• Click to explore a detailed breakdown of our findings in Avant Group's earnings growth report.
• In light of our recent valuation report, it seems possible that Avant Group is trading behind its estimated value.

Mercari (TSE:4385)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Mercari, Inc. plans, develops, and operates Mercari marketplace applications in Japan and the United States with a market cap of ¥327.78 billion.

Operations: Mercari generates revenue primarily from its marketplace applications in Japan and the United States.

Insider Ownership: 36%

Return On Equity Forecast: 23% (2027 estimate)

Mercari's earnings are forecast to grow at 18.82% annually, outpacing the Japanese market average of 8.9%. Revenue is expected to increase by 9.7% per year, faster than the market's growth rate of 4.2%. Despite high volatility in its share price recently, Mercari trades at a slight discount to its estimated fair value. Recent guidance projects revenue of ¥190 billion and operating profit of ¥16.5 billion for fiscal year ending June 2024.

• Get an in-depth perspective on Mercari's performance by reading our analyst estimates report here.
• The analysis detailed in our Mercari valuation report hints at an inflated share price compared to its estimated value.

Where To Now?

• Embark on your investment journey to our 99 Fast Growing Japanese Companies With High Insider Ownership selection here.
• 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.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

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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