3 Japanese Growth Stocks With Up To 35% Insider Ownership

Japan’s stock markets have shown modest gains recently, with the Nikkei 225 Index rising 0.8% and the broader TOPIX Index up 0.2%, amid ongoing speculation about the Bank of Japan's monetary policy adjustments. With a stable economic outlook and supportive inflation data, investors are increasingly looking at growth companies with significant insider ownership as potential opportunities. In this context, stocks with high insider ownership can be particularly appealing, as they often indicate strong confidence from those closest to the company in its future performance.

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%	61.9%
Kasumigaseki CapitalLtd (TSE:3498)	34.7%	43.3%
Medley (TSE:4480)	34%	30.5%
SHIFT (TSE:3697)	35.4%	32.8%
ExaWizards (TSE:4259)	22%	63%
Money Forward (TSE:3994)	21.4%	66.9%
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 103 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

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

Lifedrink Company (TSE:2585)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Lifedrink Company, Inc. manufactures and sells beverages in Japan with a market cap of ¥97.59 billion.

Operations: Lifedrink's revenue comes from manufacturing and selling beverages in Japan.

Insider Ownership: 14.6%

Lifedrink Company, Inc. demonstrates promising growth potential with forecasted earnings growth of 10.2% annually, outpacing the Japanese market average of 8.5%. Despite its high debt levels, the company is trading at an 8.1% discount to its estimated fair value and has a strong return on equity forecast of 22.1% in three years. Recent earnings grew by 30.5%, and revenue is expected to grow at a steady rate of 5.9% per year.

• Take a closer look at Lifedrink Company's potential here in our earnings growth report.
• Our valuation report unveils the possibility Lifedrink Company's shares may be trading at a premium.

Round One (TSE:4680)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Round One Corporation operates indoor leisure complex facilities and has a market cap of ¥244.06 billion.

Operations: Round One Corporation's revenue segments include ¥59.58 billion from the USA and ¥97.99 billion from Japan.

Insider Ownership: 35.2%

Round One shows robust growth potential with earnings forecasted to rise 10.46% annually, outpacing the Japanese market's 8.5%. Despite a highly volatile share price, it trades at a substantial discount of 64.6% below estimated fair value and offers good relative value compared to peers. Recent unaudited sales results highlight solid performance, with year-to-date Japan sales reaching ¥30.96 billion and USA sales hitting ¥150.01 billion as of July 2024.

• Navigate through the intricacies of Round One with our comprehensive analyst estimates report here.
• According our valuation report, there's an indication that Round One's share price might be on the cheaper side.

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 ¥2.02 trillion.

Operations: Rakuten Group generates revenue from its services in e-commerce, fintech, digital content, and communications across Japan and internationally.

Insider Ownership: 17.3%

Rakuten Group is forecast to become profitable within three years, with earnings expected to grow 82.87% annually, significantly outpacing the Japanese market. Despite a highly volatile share price over the past three months, its revenue growth of 7.6% per year exceeds the market average of 4.3%. Recent Q2 2024 earnings call highlighted progress towards profitability and strategic initiatives to drive future growth. However, Return on Equity is projected at a modest 9.5%.

• Delve into the full analysis future growth report here for a deeper understanding of Rakuten Group.
• Our comprehensive valuation report raises the possibility that Rakuten Group is priced higher than what may be justified by its financials.

Turning Ideas Into Actions

• Embark on your investment journey to our 103 Fast Growing Japanese Companies With High Insider Ownership selection here.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
• Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all 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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