S Foods And 2 Other Top Growth Stocks With High Insider Ownership On The Japanese Exchange

Japan's stock markets have recently experienced significant volatility, driven by a rebounding yen and concerns over global growth. Despite this turbulence, the market has shown resilience, with indices like the Nikkei 225 and TOPIX managing to recoup much of their losses. In such an environment, identifying growth companies with high insider ownership can be particularly compelling. These stocks often benefit from strong internal confidence and alignment of interests between management and shareholders.

Top 10 Growth Companies With High Insider Ownership In Japan

Name	Insider Ownership	Earnings Growth
Hottolink (TSE:3680)	27%	62.8%
Micronics Japan (TSE:6871)	15.3%	32.9%
Kasumigaseki CapitalLtd (TSE:3498)	34.8%	43.3%
Medley (TSE:4480)	34%	28.7%
SHIFT (TSE:3697)	35.4%	32.8%
ExaWizards (TSE:4259)	21.8%	91.1%
Money Forward (TSE:3994)	21.4%	66.9%
Astroscale Holdings (TSE:186A)	20.9%	90%
Soracom (TSE:147A)	16.5%	54.1%
freee K.K (TSE:4478)	32.8%	72.9%

Click here to see the full list of 101 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

We're going to check out a few of the best picks from our screener tool.

S Foods (TSE:2292)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: S Foods Inc. is a Japanese meat company involved in the manufacture, wholesaling, retailing, and food servicing of meat-related products with a market cap of ¥80.89 billion.

Operations: The company's revenue segments include manufacturing, wholesaling, retailing, and food servicing of meat-related products in Japan.

Insider Ownership: 25.5%

Earnings Growth Forecast: 22.4% p.a.

S Foods, a growth company with high insider ownership in Japan, is forecast to see its revenue grow 7.8% per year, outpacing the JP market's 4.3%. However, profit margins have declined from 2.7% to 1.4% over the past year. Despite this, earnings are expected to grow significantly at 22.4% annually over the next three years, faster than the market's 8.6%. The stock trades at a substantial discount of approximately 40.5% below its estimated fair value but has a dividend yield of 3.48%, which is not well covered by free cash flows.

• Get an in-depth perspective on S Foods' performance by reading our analyst estimates report here.
• In light of our recent valuation report, it seems possible that S Foods is trading behind its estimated value.

Rakuten Group (TSE:4755)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Rakuten Group, Inc. operates in e-commerce, fintech, digital content, and communications both in Japan and internationally with a market cap of ¥1.83 trillion.

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

Insider Ownership: 17.3%

Earnings Growth Forecast: 84.8% p.a.

Rakuten Group is forecast to achieve double-digit growth in consolidated revenue for 2024, excluding its securities business. The company expects annual profit growth above market averages and aims to become profitable within three years. Despite high volatility in share price and a low return on equity forecast of 10.2%, earnings are projected to grow significantly at 84.77% per year, with revenue growth outpacing the JP market at 7.7% annually.

• Navigate through the intricacies of Rakuten Group with our comprehensive analyst estimates report here.
• Upon reviewing our latest valuation report, Rakuten Group's share price might be too optimistic.

Lasertec (TSE:6920)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Lasertec Corporation designs, manufactures, and sells inspection and measurement equipment both in Japan and internationally, with a market cap of ¥2.55 trillion.

Operations: Revenue from inspection and measurement equipment amounts to ¥213.51 billion.

Insider Ownership: 12.1%

Earnings Growth Forecast: 19.4% p.a.

Lasertec's earnings grew 28% over the past year and are forecast to grow at 19.4% annually, outpacing the JP market's 8.6%. Revenue is expected to increase by 15.7% per year, faster than the market average of 4.3%. Despite a highly volatile share price recently, Lasertec maintains high-quality earnings and a strong return on equity forecast of 39.8%. Recent sales figures show significant growth in their ACTIS Series, highlighting robust demand.

• Delve into the full analysis future growth report here for a deeper understanding of Lasertec.
• Insights from our recent valuation report point to the potential overvaluation of Lasertec shares in the market.

Summing It All Up

• Delve into our full catalog of 101 Fast Growing Japanese Companies With High Insider Ownership here.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Ready To Venture Into Other Investment Styles?

• 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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