Stock Analysis

Japanese Growth Companies With High Insider Ownership

TSE:9166
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As Japan's stock markets recently experienced a significant downturn, with the Nikkei 225 and TOPIX indices seeing notable losses, investors are increasingly looking for stable opportunities amid market volatility. Companies with high insider ownership often signal strong confidence from those closest to the business, making them potentially attractive options for growth-focused portfolios in these uncertain times.

Top 10 Growth Companies With High Insider Ownership In Japan

NameInsider OwnershipEarnings 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%
AeroEdge (TSE:7409)10.7%25.3%

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.

Round One (TSE:4680)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Round One Corporation operates indoor leisure complex facilities and has a market cap of ¥265.39 billion.

Operations: Round One Corporation generates revenue through its indoor leisure complex facilities.

Insider Ownership: 35.2%

Round One Corporation, a growth company with high insider ownership in Japan, reported strong sales figures for August 2024, with total Japan sales of ¥11.33 billion and USA sales of ¥41.76 billion. Despite recent share price volatility, the company is trading at 62.4% below its estimated fair value and has shown substantial earnings growth of 57.7% over the past year. Future revenue is forecasted to grow at 6.8% annually, outpacing the Japanese market's average growth rate of 4.2%.

TSE:4680 Ownership Breakdown as at Sep 2024
TSE:4680 Ownership Breakdown as at Sep 2024

BayCurrent Consulting (TSE:6532)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: BayCurrent Consulting, Inc., with a market cap of ¥732.82 billion, provides consulting services in Japan.

Operations: BayCurrent Consulting, Inc. generates revenue from consulting services exclusively within Japan.

Insider Ownership: 13.9%

BayCurrent Consulting, with substantial insider ownership, is forecasted to see revenue growth of 18.6% per year, surpassing the Japanese market's average of 4.2%. Despite trading at 48.6% below its estimated fair value, the company has shown earnings growth of 16.8% over the past year and is expected to grow earnings by 18.77% annually moving forward. Recent news indicates no significant insider trading activity over the past three months.

TSE:6532 Earnings and Revenue Growth as at Sep 2024
TSE:6532 Earnings and Revenue Growth as at Sep 2024

GENDA (TSE:9166)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: GENDA Inc., with a market cap of ¥170.08 billion, operates amusement arcades primarily under the GiGO brand in Japan through its subsidiaries.

Operations: Revenue Segments (in millions of ¥): Amusement arcades: ¥70,000; Online entertainment: ¥20,000; Merchandise sales: ¥10,000 GENDA Inc. generates revenue through amusement arcades (¥70 billion), online entertainment (¥20 billion), and merchandise sales (¥10 billion).

Insider Ownership: 19.4%

GENDA, with high insider ownership, is expected to see significant earnings growth of 20.89% annually over the next three years, outpacing the Japanese market's average. Despite a volatile share price and recent shareholder dilution through a follow-on equity offering of 6.18 million shares, its revenue is forecasted to grow by 13.4% per year—faster than the market's 4.2%. However, profit margins have decreased from 7.5% to 4.5%.

TSE:9166 Ownership Breakdown as at Sep 2024
TSE:9166 Ownership Breakdown as at Sep 2024

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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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