Top Japanese Growth Companies With High Insider Ownership In August 2024

In August 2024, Japan's stock markets have experienced significant turbulence, with the Nikkei 225 and TOPIX indices posting some of their steepest declines in recent history. Amidst this volatility, investors are increasingly focusing on growth companies with high insider ownership as a potential source of stability and long-term value. High insider ownership often signals strong management confidence in the company's future prospects and can align executive interests with those of shareholders. In this context, identifying such companies within Japan’s dynamic market landscape may offer insights into promising investment opportunities.

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.

Let's take a closer look at a couple of our picks from the screened companies.

Fujio Food Group (TSE:2752)

Simply Wall St Growth Rating: ★★★★☆☆

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

Operations: The company's revenue segments include its domestic restaurant operations generating ¥44.50 billion and international restaurant operations contributing ¥2.10 billion.

Insider Ownership: 29.5%

Fujio Food Group is expected to become profitable within the next 3 years, with earnings forecasted to grow by 72.84% annually. The company's revenue growth of 6.2% per year outpaces the Japanese market's average of 4.1%. Trading at 30.8% below its estimated fair value, Fujio Food Group presents a potential undervaluation opportunity for investors seeking growth companies with substantial insider ownership in Japan.

• Get an in-depth perspective on Fujio Food Group's performance by reading our analyst estimates report here.
• Upon reviewing our latest valuation report, Fujio Food Group's share price might be too optimistic.

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 services: ¥4,500; Business intelligence: ¥3,200; Outsourcing services: ¥2,800. Avant Group generates revenue through accounting services (¥4.50 billion), business intelligence (¥3.20 billion), and outsourcing services (¥2.80 billion).

Insider Ownership: 33.9%

Avant Group's revenue is forecast to grow at 16.9% per year, outpacing the Japanese market's average of 4.1%. Earnings are expected to increase by 18.92% annually, faster than the JP market's 8.9%. Despite high volatility in share price and trading at a significant discount to its estimated fair value, Avant Group has shown strong recent performance with earnings growing by 36.1% last year and completing a ¥477.64 million share buyback program in June 2024.

• Navigate through the intricacies of Avant Group with our comprehensive analyst estimates report here.
• Our expertly prepared valuation report Avant Group implies its share price may be lower than expected.

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 Transportation at ¥7.35 billion and High-Purity Chemical at ¥26.02 billion.

Insider Ownership: 23.5%

Stella Chemifa is trading at 54.2% below its estimated fair value, with revenue expected to grow 9.2% annually, surpassing the Japanese market's 4.1%. Earnings are forecasted to rise significantly by 24% per year, well above the market average of 8.9%. Despite a dividend yield of 5.04%, it's not well-covered by earnings or free cash flow. The company has provided guidance for FY2025 with net revenues of ¥34.50 billion and operating profit of ¥3.65 billion.

• Take a closer look at Stella Chemifa's potential here in our earnings growth report.
• The analysis detailed in our Stella Chemifa valuation report hints at an inflated share price compared to its estimated value.

Make It Happen

• Take a closer look at our Fast Growing Japanese Companies With High Insider Ownership list of 100 companies by clicking here.
• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
• Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

Ready For A Different Approach?

• 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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