3 Japanese Growth Stocks With Significant Insider Ownership

Japan's stock markets have shown resilience, with the Nikkei 225 Index climbing 2.45% and the TOPIX Index rising 0.45%, supported by a weaker yen that enhances the profit outlook for exporters. Amid this favorable backdrop, growth companies with significant insider ownership can be particularly appealing as they often indicate strong confidence from those who understand the business best, potentially aligning well with current market conditions.

Top 10 Growth Companies With High Insider Ownership In Japan

Name	Insider Ownership	Earnings Growth
Micronics Japan (TSE:6871)	15.3%	31.5%
Hottolink (TSE:3680)	26.1%	61.5%
Kasumigaseki CapitalLtd (TSE:3498)	34.7%	40.2%
Medley (TSE:4480)	34%	30.4%
Inforich (TSE:9338)	19.1%	29.8%
Kanamic NetworkLTD (TSE:3939)	25%	28.3%
ExaWizards (TSE:4259)	22%	75.2%
Money Forward (TSE:3994)	21.4%	68.1%
Loadstar Capital K.K (TSE:3482)	33.8%	24.3%
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.

Eternal Hospitality GroupLtd (TSE:3193)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Eternal Hospitality Group Co., Ltd. operates restaurants in Japan and has a market cap of ¥47.84 billion.

Operations: The company generates revenue primarily from its Food and Beverage Business, amounting to ¥41.91 billion.

Insider Ownership: 35.5%

Eternal Hospitality Group Ltd. demonstrates strong growth potential with earnings expected to grow 14.3% annually, outpacing the Japanese market's 8.8%. Despite high share price volatility, the company trades at a significant discount to its estimated fair value. Recent guidance projects substantial revenue and profit increases for fiscal year 2025, supporting its growth narrative. Insider ownership remains stable without recent trading activity, suggesting confidence in future prospects despite slower revenue growth compared to earnings expansion forecasts.

• Delve into the full analysis future growth report here for a deeper understanding of Eternal Hospitality GroupLtd.
• Our valuation report here indicates Eternal Hospitality GroupLtd may be undervalued.

freee K.K (TSE:4478)

Simply Wall St Growth Rating: ★★★★★☆

Overview: freee K.K. provides cloud-based accounting and HR software solutions in Japan, with a market cap of ¥197.19 billion.

Operations: Revenue Segments (in millions of ¥): freee K.K. generates revenue through its cloud-based accounting and HR software solutions in Japan.

Insider Ownership: 23.9%

freee K.K. shows promising growth potential, with earnings forecasted to increase by 74.08% annually and revenue expected to grow at 18.2%, surpassing the Japanese market average. Despite share price volatility, it trades significantly below its estimated fair value. Recent changes in leadership and amendments to its articles of incorporation indicate strategic shifts aimed at business expansion. The company anticipates net sales of ¥33 billion for fiscal year ending June 2025, aligning with its growth trajectory.

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

Rakuten Group (TSE:4755)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Rakuten Group, Inc. operates in e-commerce, fintech, digital content, and communications sectors both in Japan and internationally, with a market cap of ¥20.40 billion.

Operations: The company's revenue segments include Internet Services at ¥1.24 billion, Fin Tech at ¥772.29 million, and Mobile at ¥382.95 million.

Insider Ownership: 17.3%

Rakuten Group is forecasted to achieve profitability within three years, with earnings expected to grow by 79.35% annually and revenue projected to increase at 7.5%, outpacing the Japanese market average of 4.3%. Despite its highly volatile share price recently, it trades significantly below its fair value estimate. The company maintains a low Return on Equity forecast of 9.7%, and recent presentations in New York highlight ongoing strategic initiatives in healthcare technology sectors.

• Take a closer look at Rakuten Group's potential here in our earnings growth report.
• Our expertly prepared valuation report Rakuten Group implies its share price may be lower than expected.

Summing It All Up

• Click here to access our complete index of 101 Fast Growing Japanese Companies With High Insider Ownership.
• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
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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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