3 Growth Stocks On Japanese Exchange With Insider Ownership Up To 24%

Japan's stock markets have shown resilience, with the Nikkei 225 and TOPIX Index recovering most of their losses from earlier in the month. Amid this backdrop, growth companies with high insider ownership can present compelling investment opportunities, as insider confidence often signals strong future potential. In today's market conditions, stocks that combine robust growth prospects with significant insider ownership are particularly noteworthy. These attributes suggest alignment between management and shareholder interests, which can be advantageous for long-term investors.

Top 10 Growth Companies With High Insider Ownership In Japan

Name	Insider Ownership	Earnings Growth
Micronics Japan (TSE:6871)	15.3%	32.7%
Hottolink (TSE:3680)	27%	61.9%
Kasumigaseki CapitalLtd (TSE:3498)	34.7%	43.8%
Medley (TSE:4480)	34%	30.5%
Kanamic NetworkLTD (TSE:3939)	25%	28.3%
SHIFT (TSE:3697)	35.4%	32.1%
ExaWizards (TSE:4259)	22%	63%
Money Forward (TSE:3994)	21.4%	68.1%
Astroscale Holdings (TSE:186A)	21.3%	90%
Loadstar Capital K.K (TSE:3482)	33.8%	24.3%

Click here to see the full list of 101 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

Let's review some notable picks from our screened stocks.

Rakuten Group (TSE:4755)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Rakuten Group, Inc. operates in e-commerce, fintech, digital content, and communications sectors serving users both in Japan and internationally with a market cap of ¥2.23 trillion.

Operations: Rakuten Group's revenue segments include Mobile at ¥382.95 million, Fin Tech at ¥772.29 million, and Internet Services at ¥1.24 billion.

Insider Ownership: 17.3%

Rakuten Group, Inc. is forecast to achieve revenue growth of 7.6% per year, outpacing the JP market's 4.3%. Earnings are expected to grow significantly at 83.28% annually, with profitability anticipated within three years. Despite a highly volatile share price recently and a forecasted low return on equity of 9.7%, Rakuten remains a key player in Japan's growth sector with substantial insider ownership and no recent insider trading activity reported over the past three months.

• Get an in-depth perspective on Rakuten Group's performance by reading our analyst estimates report here.
• In light of our recent valuation report, it seems possible that Rakuten Group is trading beyond its estimated value.

Marvelous (TSE:7844)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Marvelous Inc. (TSE:7844) is involved in the planning, development, production, marketing, and sale of game software for home-use game machines and has a market cap of ¥37.07 billion.

Operations: The company's revenue segments include the Amusement Business with ¥8.95 billion, Music Video Business generating ¥4.96 billion, and Digital Content Business contributing ¥14.50 billion.

Insider Ownership: 24.1%

Marvelous Inc. is forecasted to achieve revenue growth of 6.6% per year, surpassing the JP market's 4.3%. Earnings are expected to grow significantly at 64.51% annually, with profitability anticipated within three years. Despite a dividend yield of 5.39% that isn't well covered by earnings or free cash flows, Marvelous remains a growth company with high insider ownership and no recent insider trading activity reported over the past three months.

• Click to explore a detailed breakdown of our findings in Marvelous' earnings growth report.
• The valuation report we've compiled suggests that Marvelous' current price could be inflated.

Capcom (TSE:9697)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Capcom Co., Ltd. is a global company that plans, develops, manufactures, sells, and distributes home video games, online games, mobile games, and arcade games with a market cap of ¥1.34 trillion.

Operations: Capcom generates revenue from Digital Content (¥103.38 billion), Amusement Equipment (¥10.34 billion), and Amusement Facilities (¥20.09 billion).

Insider Ownership: 11.5%

Capcom is forecasted to achieve revenue growth of 9.5% per year, outpacing the JP market's 4.3%. Earnings are expected to grow at 14.45% annually, also faster than the market's 8.6%. Despite a highly volatile share price over the past three months and no recent insider trading activity, Capcom remains a significant growth stock with high insider ownership. The company will report Q1 2025 results on July 29, 2024.

• Click here to discover the nuances of Capcom with our detailed analytical future growth report.
• Our valuation report here indicates Capcom may be overvalued.

Turning Ideas Into Actions

• Click here to access our complete index of 101 Fast Growing Japanese Companies With High Insider Ownership.
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Interested In Other Possibilities?

• 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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