Stock Analysis

Japan Material And Two More Top Growth Stocks With Significant Insider Ownership

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As Japan's stock markets face challenges, with the Nikkei 225 Index recently dropping by 2.7%, investors are closely monitoring shifts in market dynamics, particularly in sectors like technology which have been impacted by external trade policies. In such an environment, examining growth companies with high insider ownership might offer valuable insights, as these firms often demonstrate alignment between management’s interests and those of shareholders, potentially stabilizing performance amidst broader market volatility.

Top 10 Growth Companies With High Insider Ownership In Japan

NameInsider OwnershipEarnings Growth
Hottolink (TSE:3680)27%59.7%
Kasumigaseki CapitalLtd (TSE:3498)34.8%42.9%
Medley (TSE:4480)34%28.7%
Micronics Japan (TSE:6871)15.3%39.8%
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%
freee K.K (TSE:4478)23.9%72.9%

Click here to see the full list of 98 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

Underneath we present a selection of stocks filtered out by our screen.

JAPAN MATERIAL (TSE:6055)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: JAPAN MATERIAL Co., Ltd. specializes in the electronics and graphics sectors within Japan, with a market capitalization of approximately ¥208.56 billion.

Operations: The company generates revenue primarily from its electronics segment, which brought in ¥46.92 billion, and a smaller portion from its graphics solutions business, contributing ¥1.46 billion.

Insider Ownership: 34%

Earnings Growth Forecast: 24.3% p.a.

JAPAN MATERIAL, a growth company with high insider ownership in Japan, is navigating a complex landscape. Despite trading 14.7% below its estimated fair value and expectations of earnings growth at 24.27% annually—outpacing the Japanese market's average—its profit margins have declined from 17% to 11.7%. The firm’s share price has shown significant volatility recently, adding an element of risk. However, the company's robust revenue forecasts and stable dividend payments signal potential for resilient financial performance ahead.

TSE:6055 Ownership Breakdown as at Jul 2024

BayCurrent Consulting (TSE:6532)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: BayCurrent Consulting, Inc. offers consulting services across various sectors in Japan, with a market capitalization of approximately ¥694.28 billion.

Operations: The firm generates revenue by providing consulting services across diverse sectors in Japan.

Insider Ownership: 13.9%

Earnings Growth Forecast: 18.7% p.a.

BayCurrent Consulting, significantly undervalued at 39.8% below its fair value, is poised for robust growth with revenue and earnings forecasted to increase by 18.2% and 18.7% per year respectively, outperforming the Japanese market averages of 4.3% and 8.9%. Despite not reaching a 'significant' growth threshold and experiencing high share price volatility recently, the company maintains a strong return on equity projection at 34.7%. Recent activities include completing a share buyback for ¥3.6 billion, underscoring confidence in its financial health.

TSE:6532 Ownership Breakdown as at Jul 2024

SaizeriyaLtd (TSE:7581)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Saizeriya Co., Ltd. operates a chain of restaurants in Japan, Australia, and Asia, with a market capitalization of approximately ¥294.83 billion.

Operations: The company generates its revenue primarily through its restaurant operations across Japan, Australia, and Asia.

Insider Ownership: 30.2%

Earnings Growth Forecast: 26.1% p.a.

Saizeriya Co., Ltd., while trading 10.8% below its estimated fair value, shows promising financial prospects with earnings expected to grow by 26.1% annually, outpacing the Japanese market's average of 8.9%. Although its revenue growth at 7.1% per year is modest compared to high-growth benchmarks, it remains above the market trend of 4.3%. The company recently reported a very large earnings increase over the past year and maintains low insider trading activity, reflecting stable ownership which aligns with investor interests for transparency and long-term value creation.

TSE:7581 Ownership Breakdown as at Jul 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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