Stock Analysis

Top Japanese Growth Companies With High Insider Ownership In October 2024

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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%, buoyed by optimism surrounding China's new stimulus measures. This positive market sentiment provides a fertile backdrop for identifying growth companies with high insider ownership, which often signals strong confidence from those closest to the business.

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%
Soracom (TSE:147A)16.5%54.1%
freee K.K (TSE:4478)23.9%74.1%

Click here to see the full list of 100 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

Let's uncover some gems from our specialized screener.

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 ¥128.32 billion.

Operations: Medley's revenue segments consist of ¥5.73 billion from New Services, ¥6.09 billion from the Medical Platform Business, and ¥17.87 billion from the Human Resource Platform Business.

Insider Ownership: 34%

Medley, Inc. demonstrates strong growth potential with earnings anticipated to grow significantly over the next three years at 30.36% annually, outpacing the Japanese market's 8.7%. Recent earnings grew by 39.2%, and revenue is expected to increase by 25% per year, surpassing the market's 4.2%. Despite high share price volatility, Medley's board is considering acquiring Offshore Inc., and its subsidiary Jobley is expanding rapidly across the U.S., enhancing its healthcare hiring services footprint.

TSE:4480 Ownership Breakdown as at Oct 2024

Micronics Japan (TSE:6871)

Simply Wall St Growth Rating: ★★★★★★

Overview: Micronics Japan Co., Ltd. develops, manufactures, and sells testing and measurement equipment for semiconductors and LCD testing systems worldwide, with a market cap of ¥158.41 billion.

Operations: The company generates revenue from its TE Business segment amounting to ¥2.19 billion and its Probe Card Business segment amounting to ¥45.29 billion.

Insider Ownership: 15.3%

Micronics Japan is poised for significant growth with earnings expected to increase by 31.53% annually over the next three years, well above the Japanese market average of 8.7%. Revenue is forecasted to grow at 20.8% per year, also outpacing the market's 4.2%. Despite recent share price volatility, it trades at a substantial discount of 58.1% below estimated fair value and has no recent insider trading activity reported in the past three months.

TSE:6871 Earnings and Revenue Growth as at Oct 2024

GENDA (TSE:9166)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: GENDA Inc., with a market cap of ¥220.33 billion, operates amusement arcades primarily under the GiGO brand in Japan through its subsidiaries.

Operations: The company's revenue segments include amusement arcades generating ¥58,000 million, rental income contributing ¥5,000 million, and sales of merchandise adding ¥3,500 million.

Insider Ownership: 19.3%

GENDA Inc. is expected to see earnings grow significantly at 20.9% annually over the next three years, outpacing the Japanese market's 8.7%. Revenue growth is forecasted at 13.4% per year, also higher than the market average of 4.2%. Despite recent share price volatility and a decrease in profit margins from 7.5% to 4.5%, insider ownership remains high with no substantial insider trading reported recently, although shareholders experienced dilution last year due to a follow-on equity offering of common stock in July.

TSE:9166 Earnings and Revenue Growth as at Oct 2024

Summing It All Up

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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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