Stock Analysis

3 Japanese Growth Stocks With Insider Ownership And Up To 79% Earnings Growth

TSE:6532
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Japan's stock markets have experienced a rise, with the Nikkei 225 Index gaining 2.45% and the broader TOPIX Index up 0.45%, supported by yen weakness which has boosted profit outlooks for exporters. In this context, growth companies with high insider ownership can be particularly appealing as they often align management interests with shareholders, potentially driving robust earnings growth in favorable market conditions.

Top 10 Growth Companies With High Insider Ownership In Japan

NameInsider OwnershipEarnings Growth
Micronics Japan (TSE:6871)15.3%31.5%
Hottolink (TSE:3680)26.1%61.5%
Kasumigaseki CapitalLtd (TSE:3498)34.7%40.2%
Medley (TSE:4480)34%30.4%
Inforich (TSE:9338)19.1%29.8%
Kanamic NetworkLTD (TSE:3939)25%28.3%
ExaWizards (TSE:4259)22%75.2%
Money Forward (TSE:3994)21.4%68.4%
Loadstar Capital K.K (TSE:3482)33.8%24.3%
freee K.K (TSE:4478)23.9%74.1%

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.

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 in Japan and internationally with a market cap of ¥2.07 trillion.

Operations: The company's revenue segments include Mobile at ¥382.95 million, Fin Tech at ¥772.29 million, and Internet Services at ¥1.24 billion.

Insider Ownership: 17.3%

Earnings Growth Forecast: 79.4% p.a.

Rakuten Group is trading significantly below its estimated fair value, presenting a potential opportunity for growth-focused investors. Despite high share price volatility, the company is forecast to achieve profitability within three years with earnings projected to grow substantially at 79.43% annually. Revenue growth of 7.5% per year outpaces the Japanese market average but remains moderate compared to other high-growth firms. Recent conference participation underscores its active engagement in strategic discussions and visibility enhancement efforts.

TSE:4755 Ownership Breakdown as at Oct 2024
TSE:4755 Ownership Breakdown as at Oct 2024

BayCurrent Consulting (TSE:6532)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: BayCurrent Consulting, Inc. offers consulting services in Japan and has a market capitalization of approximately ¥826.88 billion.

Operations: Revenue segments for BayCurrent Consulting, Inc. include consulting services in Japan.

Insider Ownership: 13.9%

Earnings Growth Forecast: 18.4% p.a.

BayCurrent Consulting is trading at a substantial discount to its estimated fair value, appealing to growth-oriented investors. The company's revenue and earnings are forecasted to grow faster than the Japanese market, at 17.8% and 18.4% per year respectively, though below significant growth thresholds. With a high expected return on equity of 35.4% in three years, BayCurrent demonstrates strong potential despite no recent insider trading activity reported in the past three months.

TSE:6532 Ownership Breakdown as at Oct 2024
TSE:6532 Ownership Breakdown as at Oct 2024

Financial Partners GroupLtd (TSE:7148)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Financial Partners Group Co., Ltd., along with its subsidiaries, offers a range of financial products and services in Japan and has a market capitalization of ¥208.23 billion.

Operations: Financial Partners Group Co., Ltd. generates its revenue through diverse financial products and services offered within Japan.

Insider Ownership: 31.3%

Earnings Growth Forecast: 17% p.a.

Financial Partners Group Ltd. offers growth potential with a favorable price-to-earnings ratio of 11.3x, below the Japanese market average. Its earnings are projected to grow at 16.95% annually, surpassing the market's rate, though revenue growth is slower at 15.4%. Despite high debt levels and recent share buybacks totaling ¥1.90 billion, insider trading remains inactive over three months. The company recently expanded operations and revised earnings guidance upwards significantly for FY2024.

TSE:7148 Earnings and Revenue Growth as at Oct 2024
TSE:7148 Earnings and Revenue Growth as at Oct 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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