Top Growth Companies With High Insider Ownership On The Japanese Exchange In August 2024

In August 2024, Japan’s stock markets faced significant volatility, with the Nikkei 225 Index and TOPIX Index experiencing substantial declines amid a hawkish stance from the Bank of Japan and a rebounding yen affecting export-oriented companies. Despite these challenges, growth companies with high insider ownership often present compelling investment opportunities due to their strong alignment between management and shareholder interests. When evaluating stocks in such turbulent market conditions, it is crucial to consider firms where insiders have significant stakes as this often indicates confidence in the company's long-term prospects.

Top 10 Growth Companies With High Insider Ownership In Japan

Name	Insider Ownership	Earnings Growth
Kasumigaseki CapitalLtd (TSE:3498)	34.8%	43.3%
Hottolink (TSE:3680)	27%	59.7%
Micronics Japan (TSE:6871)	15.3%	39.8%
Medley (TSE:4480)	34%	28.7%
Kanamic NetworkLTD (TSE:3939)	25%	28.9%
SHIFT (TSE:3697)	35.4%	32.8%
ExaWizards (TSE:4259)	21.8%	91.1%
Money Forward (TSE:3994)	21.4%	66.8%
Astroscale Holdings (TSE:186A)	20.9%	90%
Soracom (TSE:147A)	16.5%	54.1%

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

Here we highlight a subset of our preferred stocks from the screener.

Fujio Food Group (TSE:2752)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Fujio Food Group Inc. operates restaurants in Japan and internationally, with a market cap of ¥58.87 billion.

Operations: The company generates revenue through its restaurant operations both domestically in Japan and internationally.

Insider Ownership: 29.5%

Fujio Food Group is forecast to become profitable within the next three years, with earnings expected to grow at 72.84% per year. The company’s revenue is projected to increase by 6.2% annually, outpacing the broader Japanese market's growth rate of 4.1%. Trading at 30.8% below its estimated fair value, Fujio Food Group presents a compelling investment opportunity in Japan’s growth sector with significant insider ownership and no substantial insider trading activity over the past three months.

• Click to explore a detailed breakdown of our findings in Fujio Food Group's earnings growth report.
• Insights from our recent valuation report point to the potential overvaluation of Fujio Food Group shares in the market.

Avant Group (TSE:3836)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Avant Group Corporation, with a market cap of ¥52.02 billion, operates through its subsidiaries to offer accounting, business intelligence, and outsourcing services.

Operations: Revenue Segments (in millions of ¥): Accounting: ¥4,500, Business Intelligence: ¥3,200, Outsourcing Services: ¥2,800

Insider Ownership: 33.9%

Avant Group's earnings are forecast to grow at 18.9% annually, outpacing the Japanese market's 8.9%. Despite revenue growth being slower than 20%, it is still expected to exceed the market average at 16.9%. The company recently completed a share buyback of ¥477.64 million, indicating confidence in its valuation, which trades at 62.4% below fair value estimates. However, the stock has been highly volatile over the past three months with no significant insider trading activity noted recently.

• Click here to discover the nuances of Avant Group with our detailed analytical future growth report.
• Our comprehensive valuation report raises the possibility that Avant Group is priced lower than what may be justified by its financials.

Stella Chemifa (TSE:4109)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Stella Chemifa Corporation manufactures and sells inorganic fluorine compounds in Japan and internationally, with a market cap of ¥40.59 billion.

Operations: Stella Chemifa's revenue segments include High-Purity Chemicals at ¥26.02 billion and Transportation at ¥7.35 billion.

Insider Ownership: 23.5%

Stella Chemifa's earnings are forecast to grow significantly at 24% annually, outpacing the Japanese market's 8.9%. Revenue growth is expected to be slower at 9.2% per year but still above the market average of 4.1%. The company provided guidance for fiscal year ending March 31, 2025, with net revenues projected at ¥34.50 billion and operating profit at ¥3.65 billion. Trading at a substantial discount of 54.2% below fair value estimates, it shows strong insider ownership and no significant recent insider trading activity.

• Unlock comprehensive insights into our analysis of Stella Chemifa stock in this growth report.
• Our valuation report unveils the possibility Stella Chemifa's shares may be trading at a premium.

Seize The Opportunity

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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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