3 Japanese Growth Companies With High Insider Ownership Expecting 18% Earnings Growth

Japan's stock markets recently experienced a downturn, with the Nikkei 225 Index and TOPIX Index both registering significant losses. Despite this volatility, certain growth companies with high insider ownership are poised to benefit from expected earnings growth of 18%. In today's market conditions, stocks with strong insider ownership can be particularly appealing as they often indicate confidence in the company's future prospects by those who know it best. Here are three Japanese growth companies that fit this profile and are anticipating substantial earnings growth.

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)	22%	63%
Money Forward (TSE:3994)	21.4%	68.1%
Astroscale Holdings (TSE:186A)	21.3%	90%
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 100 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

Let's explore several standout options from the results in the screener.

Round One (TSE:4680)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Round One Corporation operates indoor leisure complex facilities and has a market cap of ¥256.48 billion.

Operations: Round One generates revenue from various segments, including amusement facilities, bowling alleys, karaoke rooms, and sports entertainment.

Insider Ownership: 35.2%

Earnings Growth Forecast: 10.4% p.a.

Round One's earnings are forecast to grow at 10.35% per year, with a high Return on Equity of 20.8% expected in three years. Despite recent share price volatility, the company has shown strong past performance with earnings growing by 57.7% over the past year. Trading at 62.5% below its estimated fair value, Round One is considered good relative value compared to peers and industry standards in Japan and the USA markets.

• Get an in-depth perspective on Round One's performance by reading our analyst estimates report here.
• The valuation report we've compiled suggests that Round One's current price could be quite moderate.

BayCurrent Consulting (TSE:6532)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: BayCurrent Consulting, Inc. offers consulting services in Japan and has a market cap of ¥738.28 billion.

Operations: BayCurrent Consulting, Inc. generates revenue through consulting services in Japan.

Insider Ownership: 13.9%

Earnings Growth Forecast: 18.7% p.a.

BayCurrent Consulting's revenue is forecast to grow at 18.6% per year, outpacing the JP market's 4.2%. Earnings are projected to increase by 18.7% annually, also exceeding the market average of 8.6%. Despite no recent insider trading activity, BayCurrent has demonstrated solid performance with a past earnings growth of 16.8%. Trading at a significant discount to its estimated fair value and with high expected Return on Equity (34.7%) in three years, it remains an attractive growth prospect in Japan.

• Navigate through the intricacies of BayCurrent Consulting with our comprehensive analyst estimates report here.
• In light of our recent valuation report, it seems possible that BayCurrent Consulting is trading beyond its estimated value.

LITALICO (TSE:7366)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: LITALICO Inc. operates schools for learning and preschool education in Japan, with a market cap of ¥44.13 billion.

Operations: The company's revenue comes from three main segments: Employment Support Business (¥11.08 billion), Child Welfare Business (¥9.39 billion), and Platform Business (¥4.05 billion).

Insider Ownership: 37.2%

Earnings Growth Forecast: 17.4% p.a.

LITALICO's revenue is forecast to grow at 13.8% annually, surpassing the JP market average of 4.2%, while earnings are expected to rise by 17.4% per year, outpacing the market's 8.6%. Despite high debt levels and a decline in profit margins from 10.6% to 7.4%, it trades at a significant discount to its estimated fair value and has substantial insider ownership, suggesting strong internal confidence in its growth trajectory. Recent private placements raised ¥26,572,650 for strategic investments.

• Dive into the specifics of LITALICO here with our thorough growth forecast report.
• In light of our recent valuation report, it seems possible that LITALICO is trading behind its estimated value.

Next Steps

• Click this link to deep-dive into the 100 companies within our Fast Growing Japanese Companies With High Insider Ownership screener.
• 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.
• Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

Want To Explore Some Alternatives?

• 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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