3 Japanese Insider-Owned Growth Companies With 38% Earnings Potential

Japan's stock markets recently experienced volatility amid political changes, with the Nikkei 225 and TOPIX indices registering declines as investors reacted to new leadership and monetary policy signals. Despite these fluctuations, the Japanese market remains a fertile ground for growth companies, particularly those with high insider ownership, which can align management interests with shareholder value—a crucial factor in navigating uncertain economic landscapes.

Top 10 Growth Companies With High Insider Ownership In Japan

Name	Insider Ownership	Earnings Growth
Micronics Japan (TSE:6871)	15.3%	31.5%
Hottolink (TSE:3680)	26.1%	61.5%
Kasumigaseki CapitalLtd (TSE:3498)	34.7%	38.5%
Medley (TSE:4480)	34%	30.4%
Inforich (TSE:9338)	19.1%	29.5%
Kanamic NetworkLTD (TSE:3939)	25%	28.3%
ExaWizards (TSE:4259)	22%	75.2%
Money Forward (TSE:3994)	21.4%	68.1%
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.

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

Kasumigaseki CapitalLtd (TSE:3498)

Simply Wall St Growth Rating: ★★★★★★

Overview: Kasumigaseki Capital Co., Ltd. operates in the real estate consulting sector in Japan and has a market cap of ¥183.49 billion.

Operations: Kasumigaseki Capital Co., Ltd.'s revenue segments include real estate consulting services in Japan.

Insider Ownership: 34.7%

Earnings Growth Forecast: 38.5% p.a.

Kasumigaseki Capital Ltd. is poised for significant growth, with earnings forecasted to expand 38.54% annually, outpacing the Japanese market's average. Despite a volatile share price and past shareholder dilution, its revenue is projected to grow at 26.3% per year, exceeding market expectations. The company recently expanded its luxury hospitality segment with the opening of seven x seven Ishigaki, enhancing its growth potential through innovative guest experiences and personalized luxury offerings.

• Navigate through the intricacies of Kasumigaseki CapitalLtd with our comprehensive analyst estimates report here.
• The valuation report we've compiled suggests that Kasumigaseki CapitalLtd's current price could be inflated.

Avant Group (TSE:3836)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Avant Group Corporation, with a market cap of ¥80.68 billion, operates through its subsidiaries to offer accounting, business intelligence, and outsourcing services.

Operations: The company's revenue is derived from three main segments: Management Solutions Business at ¥8.52 billion, Digital Transformation Promotion Business at ¥8.85 billion, and Consolidated Financial Statements Disclosure Business at ¥7.54 billion.

Insider Ownership: 34%

Earnings Growth Forecast: 17.9% p.a.

Avant Group is positioned for growth, with earnings expected to increase by 17.87% annually, surpassing the Japanese market average. The company's revenue is forecasted to grow at 15.8% per year, outpacing the broader market's growth rate. Recent buybacks totaling ¥828.93 million highlight strong insider confidence without substantial insider trading activity in recent months. Trading significantly below estimated fair value suggests potential upside, supported by robust financial guidance for the fiscal year ending June 2025.

• Click to explore a detailed breakdown of our findings in Avant Group's earnings growth report.
• In light of our recent valuation report, it seems possible that Avant Group is trading beyond its estimated value.

GENDA (TSE:9166)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: GENDA Inc., with a market cap of ¥202.70 billion, operates amusement arcades primarily under the GiGO brand in Japan through its subsidiaries.

Operations: Revenue Segments (in millions of ¥): Amusement arcades: ¥87,400; Merchandise sales: ¥12,600; Online services: ¥4,800.

Insider Ownership: 19.3%

Earnings Growth Forecast: 20.9% p.a.

GENDA Inc. is poised for significant growth, with earnings projected to rise 20.89% annually, outpacing the Japanese market's average. Despite a recent follow-on equity offering of 6.18 million shares, insider ownership remains substantial, reflecting confidence in future prospects. Revenue growth of 13.4% per year exceeds market expectations; however, profit margins have declined from last year's levels and share price volatility persists. Shareholder dilution has occurred recently but aligns with strategic expansion efforts.

• Delve into the full analysis future growth report here for a deeper understanding of GENDA.
• According our valuation report, there's an indication that GENDA's share price might be on the expensive side.

Make It Happen

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Interested In Other Possibilities?

• 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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