Stock Analysis

Top Japanese Growth Stocks With High Insider Ownership August 2024

TSE:7779
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Japan’s stock markets have rebounded strongly, with the Nikkei 225 Index gaining 8.7% and the broader TOPIX Index up 7.9%, driven by better-than-expected economic data and a weaker yen that has benefited exporters. This positive momentum in the Japanese market provides an opportune backdrop to explore growth companies with high insider ownership, which can be indicative of 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%32.9%
Hottolink (TSE:3680)27%61.9%
Kasumigaseki CapitalLtd (TSE:3498)34.8%43.3%
Medley (TSE:4480)34%30.2%
SHIFT (TSE:3697)35.4%32.8%
ExaWizards (TSE:4259)22%75.2%
Money Forward (TSE:3994)21.4%66.9%
Astroscale Holdings (TSE:186A)21.3%90%
AeroEdge (TSE:7409)10.7%28.5%
Soracom (TSE:147A)16.5%54.1%

Click here to see the full list of 104 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

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

Hoosiers Holdings (TSE:3284)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Hoosiers Holdings Co., Ltd., with a market cap of ¥36.94 billion, operates, manages, and sells real estate properties in Japan.

Operations: Revenue segments for Hoosiers Holdings Co., Ltd. include ¥11.47 billion from the CCRC Business, ¥15.93 billion from Real Estate Investment, ¥47.01 billion from Real Estate Development Business, and ¥8.13 billion from Real Estate Related Service Business.

Insider Ownership: 29.8%

Revenue Growth Forecast: 10.6% p.a.

Hoosiers Holdings is poised for significant earnings growth, forecasted at 21.07% annually over the next three years, outpacing the Japanese market average of 8.5%. Despite a dividend yield of 5.58%, it is not well covered by free cash flows. The company’s revenue growth rate of 10.6% per year surpasses the broader market's 4.3%. With a price-to-earnings ratio of 10.3x below the market average, Hoosiers appears undervalued relative to its peers in Japan.

TSE:3284 Earnings and Revenue Growth as at Aug 2024
TSE:3284 Earnings and Revenue Growth as at Aug 2024

WealthNavi (TSE:7342)

Simply Wall St Growth Rating: ★★★★★☆

Overview: WealthNavi Inc. develops and delivers an online asset management and risk management platform, with a market cap of ¥72.24 billion.

Operations: The company's revenue primarily comes from its Robo-Advisor segment, which generated ¥4.75 billion.

Insider Ownership: 18%

Revenue Growth Forecast: 28.4% p.a.

WealthNavi's earnings are forecast to grow significantly at 73.71% annually over the next three years, far exceeding Japan's market average of 8.5%. Revenue is expected to increase by 28.4% per year, also surpassing the market growth rate of 4.3%. Recent corporate guidance for fiscal year-end December 2024 projects operating revenue of ¥11.19 billion and an operating profit of ¥531 million, highlighting strong growth potential despite past shareholder dilution and a volatile share price.

TSE:7342 Ownership Breakdown as at Aug 2024
TSE:7342 Ownership Breakdown as at Aug 2024

CYBERDYNE (TSE:7779)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: CYBERDYNE Inc. researches, develops, produces, sells, leases, and maintains robotic equipment and systems for medical and welfare sectors across various regions including Japan, the United States, Europe, the Middle East, Africa, and Asia Pacific countries with a market cap of ¥43.28 billion.

Operations: The company generates revenue through the research, development, production, sales, leasing, and maintenance of robotic equipment and systems for medical and welfare sectors across Japan, the United States, Europe, the Middle East, Africa, and Asia Pacific regions.

Insider Ownership: 39%

Revenue Growth Forecast: 17.3% p.a.

CYBERDYNE is forecast to become profitable within the next three years, with earnings expected to grow 62.16% annually. Revenue growth is projected at 17.3% per year, outpacing the Japanese market average of 4.3%. However, its Return on Equity is forecast to be low at 2.2%. The company announced it will report Q1 2025 results on August 14, 2024, indicating transparency and potential for future updates on performance metrics.

TSE:7779 Ownership Breakdown as at Aug 2024
TSE:7779 Ownership Breakdown as at Aug 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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