Stock Analysis

Japanese Growth Companies With High Insider Ownership For October 2024

TSE:3660
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Japan's stock markets have seen significant gains recently, with the Nikkei 225 Index rising 5.6% and the broader TOPIX Index up 3.7%, driven by optimism around China's stimulus measures and dovish commentary from the Bank of Japan. This favorable backdrop provides an excellent opportunity to explore growth companies with high insider ownership, as such stocks often indicate strong confidence from those closest to the business and can be particularly appealing in a bullish market environment.

Top 10 Growth Companies With High Insider Ownership In Japan

NameInsider OwnershipEarnings Growth
Micronics Japan (TSE:6871)15.3%31.5%
Hottolink (TSE:3680)27%61.5%
Kasumigaseki CapitalLtd (TSE:3498)34.7%43.5%
Medley (TSE:4480)34%30.4%
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%
Soracom (TSE:147A)16.5%54.1%

Click here to see the full list of 102 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

Below we spotlight a couple of our favorites from our exclusive screener.

istyle (TSE:3660)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: istyle Inc. operates the beauty portal site @cosme in Japan and internationally, with a market cap of ¥42.61 billion.

Operations: istyle Inc. generates revenue through its Retail segment (¥42.24 billion), Business segment (¥1.70 billion), Global Business segment (¥3.94 billion), and Marketing Solution segment (¥9.24 billion).

Insider Ownership: 18.3%

istyle Inc. demonstrates strong growth potential with significant insider ownership, evidenced by a 341.5% increase in earnings over the past year and forecasted annual profit growth of 20.6%, outpacing the Japanese market's 8.7%. Despite recent shareholder dilution, istyle's revenue grew to ¥56.09 billion from ¥42.89 billion last year, and net income rose to ¥1.21 billion from ¥275 million, indicating robust financial health amidst high volatility in share price movements.

TSE:3660 Ownership Breakdown as at Oct 2024
TSE:3660 Ownership Breakdown as at Oct 2024

Medley (TSE:4480)

Simply Wall St Growth Rating: ★★★★★★

Overview: Medley, Inc. operates platforms for recruitment and medical businesses in Japan and the United States, with a market cap of ¥124.25 billion.

Operations: Medley's revenue segments include ¥0.57 billion from New Services, ¥6.09 billion from its Medical Platform Business, and ¥17.87 billion from its Human Resource Platform Business.

Insider Ownership: 34%

Medley, Inc. exhibits strong growth potential with high insider ownership and significant revenue and earnings growth forecasts. The company's revenue is projected to grow 25% annually, outpacing the Japanese market's 4.3%, while earnings are expected to increase by 30.4% per year over the next three years. Despite recent share price volatility, Medley's fair value is estimated to be significantly higher than its current trading price. Recent expansions in the U.S., particularly through Jobley's phased rollout in healthcare hiring services, further bolster Medley's growth outlook.

TSE:4480 Earnings and Revenue Growth as at Oct 2024
TSE:4480 Earnings and Revenue Growth as at Oct 2024

BayCurrent Consulting (TSE:6532)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: BayCurrent Consulting, Inc. provides consulting services in Japan and has a market cap of ¥804.73 billion.

Operations: BayCurrent Consulting, Inc. generates revenue through its consulting services in Japan, with a market cap of ¥804.73 billion.

Insider Ownership: 13.9%

BayCurrent Consulting demonstrates strong growth potential with high insider ownership. The company's earnings grew by 16.8% over the past year and are forecast to grow at 18.42% annually, outpacing the Japanese market's 8.7%. Revenue is expected to increase by 18.4% per year, faster than the market's 4.3%. Trading at a significant discount of 44.2% below its estimated fair value, BayCurrent also boasts a high forecasted return on equity of 35.5%.

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