Stock Analysis

Rakuten And 2 Other High Growth Tech Stocks In Japan

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Japan's stock markets have made modest gains recently, with the Nikkei 225 Index rising 0.8% and the broader TOPIX Index up 0.2%, amid speculation that the Bank of Japan might continue to normalize its monetary policy. This article will explore three high-growth tech stocks in Japan, including Rakuten, which stand out due to their innovative approaches and potential for significant returns in a market showing cautious optimism.

Top 10 High Growth Tech Companies In Japan

NameRevenue GrowthEarnings GrowthGrowth Rating
Hottolink51.80%61.94%★★★★★★
Cyber Security Cloud20.71%25.73%★★★★★☆
f-code22.70%22.62%★★★★★☆
eWeLLLtd26.52%27.53%★★★★★★
Material Group17.82%28.74%★★★★★☆
SHIFT20.62%32.82%★★★★★★
Medley24.97%30.50%★★★★★★
Bengo4.comInc20.76%46.76%★★★★★★
ExaWizards22.69%62.99%★★★★★★
Money Forward20.51%66.90%★★★★★★

Click here to see the full list of 129 stocks from our Japanese High Growth Tech and AI Stocks screener.

We're going to check out a few of the best picks from our screener tool.

Kakaku.com (TSE:2371)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Kakaku.com, Inc., along with its subsidiaries, offers purchase support and restaurant review services in Japan and has a market cap of ¥467.23 billion.

Operations: The company generates revenue primarily through its purchase support and restaurant review services in Japan. Key revenue streams include advertising fees, affiliate commissions, and premium membership subscriptions. The net profit margin is 25%.

Kakaku.com has demonstrated robust earnings growth, with a notable 23.4% increase over the past year, outpacing the Interactive Media and Services industry’s 14.5%. The company forecasts an annual profit growth of 8.9%, which is slightly above Japan's market average of 8.6%. Despite a highly volatile share price in recent months, Kakaku.com continues to invest significantly in R&D to fuel innovation and maintain its competitive edge. The company's revenue is expected to grow at an annual rate of 8.7%, faster than Japan's market average of 4.3%.

TSE:2371 Earnings and Revenue Growth as at Aug 2024

Vector (TSE:6058)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Vector Inc. operates in public relations, advertising, press release distribution, video release distribution, direct marketing, media, investment, and human resources businesses across Japan, China, and internationally with a market cap of ¥43.53 billion.

Operations: Vector Inc. generates revenue from public relations, advertising, press release and video release distribution, direct marketing, media, investment, and human resources services across Japan, China, and internationally. The company has a market cap of ¥43.53 billion.

Vector's earnings surged by 47.5% over the past year, significantly outpacing the Media industry's 1.6%. The company's revenue is projected to grow at a rate of 6.9% annually, faster than Japan's market average of 4.3%, with expected earnings growth at a robust 10.7%. Vector’s commitment to innovation is evident from its substantial R&D expenditures, which have consistently driven advancements in their software solutions and AI technologies.

TSE:6058 Earnings and Revenue Growth as at Aug 2024

Marvelous (TSE:7844)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Marvelous Inc. engages in the planning, development, production, marketing, and sale of game software for home-use game machines and has a market cap of ¥37.19 billion.

Operations: The company generates revenue from three main segments: Digital Content Business (¥14.50 billion), Amusement Business (¥8.95 billion), and Music Video Business (¥4.96 billion).

Marvelous Inc., a notable player in Japan's tech scene, is forecasted to grow its revenue by 6.6% annually, surpassing the national market average of 4.3%. Despite being currently unprofitable, earnings are projected to surge by an impressive 64.5% per year over the next three years. The company's commitment to innovation is evident from its substantial R&D investments, which have consistently driven advancements in their software solutions and AI technologies.

TSE:7844 Earnings and Revenue Growth as at Aug 2024

Where To Now?

  • Gain an insight into the universe of 129 Japanese High Growth Tech and AI Stocks by clicking here.
  • Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
  • Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.

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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.

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