Stock Analysis

3 Japanese Growth Companies With High Insider Ownership Expecting Up To 19% Earnings Growth

Published

As Japan's stock markets recently experienced a decline, with the Nikkei 225 Index and the broader TOPIX Index both falling, investors are closely monitoring economic indicators such as easing inflation and currency fluctuations. In this environment, growth companies with high insider ownership can be particularly appealing, as they often demonstrate strong alignment between management and shareholder interests.

Top 10 Growth Companies With High Insider Ownership In Japan

NameInsider OwnershipEarnings Growth
Micronics Japan (TSE:6871)15.3%31.5%
Hottolink (TSE:3680)26.1%61.5%
Kasumigaseki CapitalLtd (TSE:3498)34.7%40.2%
Medley (TSE:4480)34%30.4%
Inforich (TSE:9338)19.1%29.8%
Kanamic NetworkLTD (TSE:3939)25%28.3%
ExaWizards (TSE:4259)22%75.2%
Money Forward (TSE:3994)21.4%71.3%
Loadstar Capital K.K (TSE:3482)33.8%24.3%
AeroEdge (TSE:7409)10.7%25.3%

Click here to see the full list of 102 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

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

en-japan (TSE:4849)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: en-japan inc. offers human resources services both in Japan and internationally, with a market cap of ¥98.84 billion.

Operations: Revenue segments for TSE:4849 include human resources services provided domestically and internationally.

Insider Ownership: 14.7%

Earnings Growth Forecast: 10.6% p.a.

en-japan demonstrates potential as a growth company with high insider ownership, with earnings expected to grow at 10.6% annually, outpacing the Japanese market's forecast. Despite trading at 62% below estimated fair value, revenue growth is modest at 5.6%, slightly above market expectations. Recent guidance projects net sales of ¥73 billion and profit of ¥9.33 billion for the fiscal year ending March 2025, though dividend sustainability remains a concern due to insufficient free cash flow coverage.

TSE:4849 Earnings and Revenue Growth as at Oct 2024

BayCurrent Consulting (TSE:6532)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: BayCurrent Consulting, Inc. offers consulting services in Japan and has a market cap of ¥806.10 billion.

Operations: BayCurrent Consulting, Inc. generates its revenue through consulting services provided within Japan.

Insider Ownership: 13.9%

Earnings Growth Forecast: 19% p.a.

BayCurrent Consulting is trading at 42.8% below its estimated fair value, with earnings forecast to grow at 19% annually, surpassing the Japanese market's growth rate. Revenue is expected to increase by 18.2% per year, also outpacing market averages but not exceeding 20%. Although there is no recent insider buying or selling activity, the company's return on equity is projected to be very high in three years.

TSE:6532 Ownership Breakdown as at Oct 2024

Capcom (TSE:9697)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Capcom Co., Ltd. is involved in the planning, development, manufacturing, sale, and distribution of home video games, online games, mobile games, and arcade games both in Japan and internationally with a market cap of ¥1.35 trillion.

Operations: The company's revenue segments include Digital Content at ¥103.38 billion, Amusement Equipment at ¥10.34 billion, and Amusement Facilities at ¥20.09 billion.

Insider Ownership: 11.5%

Earnings Growth Forecast: 14.6% p.a.

Capcom's earnings are projected to grow at 14.6% annually, outpacing the Japanese market's 8.7% growth rate, while revenue is expected to increase by 9.6%, also above market averages but under 20%. Despite high insider ownership, there has been no significant insider trading activity recently. The company's future return on equity is forecasted to be strong at 20.3%, suggesting potential robust financial performance in the coming years.

TSE:9697 Ownership Breakdown as at Oct 2024

Seize The Opportunity

Looking For Alternative Opportunities?

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.

New: Manage All Your Stock Portfolios in One Place

We've created the ultimate portfolio companion for stock investors, and it's free.

• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks

Try a Demo Portfolio for Free

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com