High Insider Ownership Growth Companies On The Japanese Exchange July 2024

Amidst a challenging week for Japanese markets, with the Nikkei 225 and TOPIX indices experiencing notable declines, investors are keenly observing shifts in market dynamics. This backdrop sets a compelling stage for examining growth companies with high insider ownership on the Japanese exchange, as such stocks may offer unique resilience and alignment of interests between shareholders and management in turbulent times.

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%
Money Forward (TSE:3994)	21.4%	66.9%
ExaWizards (TSE:4259)	21.9%	91.1%
Astroscale Holdings (TSE:186A)	20.9%	90%
AeroEdge (TSE:7409)	10.7%	28.5%

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

Here we highlight a subset of our preferred stocks from the screener.

Lifedrink Company (TSE:2585)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Lifedrink Company, Inc. is a Japanese beverage manufacturer with a market capitalization of ¥92.58 billion.

Operations: The company generates its revenue through the manufacture and sale of beverages in Japan.

Insider Ownership: 14.6%

Lifedrink Company, a growth-focused entity in Japan, shows promising financial dynamics with its Return on Equity forecasted at 23.1% in three years. While its annual earnings are expected to grow by 9.4%, slightly above the Japanese market average of 8.9%, revenue growth projections are modest at 6.3% per year, outpacing the market's 4.3%. Despite trading near fair value and possessing high non-cash earnings, concerns include substantial debt and a highly volatile share price recently.

• Click here and access our complete growth analysis report to understand the dynamics of Lifedrink Company.
• In light of our recent valuation report, it seems possible that Lifedrink Company is trading beyond its estimated value.

SHIFT (TSE:3697)

Simply Wall St Growth Rating: ★★★★★★

Overview: SHIFT Inc., operating in Japan, specializes in software quality assurance and testing solutions with a market capitalization of approximately ¥202.91 billion.

Operations: The firm focuses on delivering solutions for software quality assurance and testing.

Insider Ownership: 35.4%

SHIFT, a growth-oriented company in Japan, is poised for substantial financial expansion. With earnings projected to grow by 32.76% annually and revenue expected to increase at 21.2% per year, both metrics significantly outpace the broader Japanese market forecasts of 8.9% and 4.3%, respectively. Despite its high volatility in share price recently, SHIFT trades at a considerable discount of 44.7% below estimated fair value, enhancing its attractiveness amidst robust insider ownership that aligns management with shareholder interests.

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

Round One (TSE:4680)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Round One Corporation operates indoor leisure complex facilities and has a market capitalization of approximately ¥241.30 billion.

Operations: The company generates revenues primarily from its leisure facilities in Japan (¥97.99 billion) and the USA (¥59.58 billion).

Insider Ownership: 35.2%

Round One, a Japanese company with high insider ownership, is currently trading at 60.2% below its estimated fair value, suggesting potential undervaluation. Despite a highly volatile share price in recent months, the firm has demonstrated strong earnings growth of 60.9% over the past year. Looking ahead, Round One's revenue is expected to grow by 7.1% annually, outpacing the broader Japanese market forecast of 4.3%. However, its annual earnings growth projection of 11% per year is modest compared to more aggressive market leaders.

• Unlock comprehensive insights into our analysis of Round One stock in this growth report.
• Insights from our recent valuation report point to the potential undervaluation of Round One shares in the market.

Taking Advantage

• 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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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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