July 2024 Insight Into Japanese Growth Companies With High Insider Ownership

Amidst a backdrop of global economic recalibrations, Japan's stock markets have shown resilience, with significant gains in major indices like the Nikkei 225 and TOPIX. This positive momentum is particularly noteworthy given the broader context of cooling labor markets and fluctuating interest rates internationally. High insider ownership in growth companies within such a market suggests a strong alignment between management’s interests and those of shareholders, potentially offering stability and confidence in these enterprises' future strategies and performance.

Top 10 Growth Companies With High Insider Ownership In Japan

Name	Insider Ownership	Earnings Growth
SHIFT (TSE:3697)	35.4%	26.9%
Hottolink (TSE:3680)	27%	57.4%
Kasumigaseki CapitalLtd (TSE:3498)	34.8%	42.1%
Medley (TSE:4480)	34%	28.7%
Micronics Japan (TSE:6871)	15.3%	39.8%
Kanamic NetworkLTD (TSE:3939)	25%	28.9%
ExaWizards (TSE:4259)	21.9%	91.1%
AeroEdge (TSE:7409)	10.7%	28.5%
Soiken Holdings (TSE:2385)	19.8%	118.4%
Soracom (TSE:147A)	17.2%	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 uncover some gems from our specialized screener.

Mercari (TSE:4385)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Mercari, Inc. operates a marketplace application in Japan and the United States, with a market capitalization of approximately ¥401.96 billion.

Operations: The company's primary operations involve managing marketplace applications in both Japan and the U.S.

Insider Ownership: 36%

Mercari, a growth-oriented company in Japan with high insider ownership, demonstrates promising financial trends. Its revenue growth at 9.7% annually outpaces the Japanese market's 4.3%, and its earnings are expected to increase by 18.8% per year, surpassing the market average of 8.9%. Despite this robust growth forecast, Mercari's share price has been highly volatile over the past three months. The company recently projected revenues of JPY 190 billion and an operating profit of JPY 16.5 billion for the fiscal year ending June 2024.

• Navigate through the intricacies of Mercari with our comprehensive analyst estimates report here.
• According our valuation report, there's an indication that Mercari's share price might be on the expensive 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 ¥220.47 billion.

Operations: The company's primary operations involve managing indoor leisure complexes.

Insider Ownership: 35.2%

Round One Corporation, a growth company in Japan with significant insider ownership, is trading at 63% below its estimated fair value, indicating potential undervaluation. Its revenue and earnings are forecasted to grow by 7.1% and 11% annually, respectively—both rates exceeding the Japanese market averages. Recent sales results show strong performance in both Japan and the USA, with substantial year-to-date increases. Despite these positives, its revenue growth does not meet the high-growth threshold of 20%.

• Take a closer look at Round One's potential here in our earnings growth report.
• The valuation report we've compiled suggests that Round One's current price could be quite moderate.

Rakuten Group (TSE:4755)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Rakuten Group, Inc. operates in e-commerce, fintech, digital content, and communications sectors serving users globally, with a market capitalization of approximately ¥1.91 trillion.

Operations: The company generates revenue through its diverse operations in e-commerce, fintech, digital content, and communications globally.

Insider Ownership: 17.3%

Rakuten Group, positioned as a growth company in Japan with high insider ownership, is trading significantly below its fair value at 78.6%. While its revenue growth of 7.8% per year surpasses the Japanese market average, it does not reach the high-growth benchmark of 20% annually. The company is expected to become profitable within three years with earnings forecasted to grow by a substantial rate annually. Insider trading has been neutral over the past three months, indicating stable ownership during this period of anticipated profit growth and operational expansion as confirmed in their latest earnings guidance for 2024.

• Click here and access our complete growth analysis report to understand the dynamics of Rakuten Group.
• Our valuation report unveils the possibility Rakuten Group's shares may be trading at a discount.

Seize The Opportunity

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Looking For Alternative Opportunities?

• 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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