Stock Analysis

3 Japanese Growth Companies With Up To 17% Insider Ownership

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Japan's stock markets have shown resilience, with the Nikkei 225 Index gaining 0.7% and the broader TOPIX Index up 1.0%, recovering from a steep sell-off earlier in the month. This recovery comes amid renewed U.S. growth fears and a hawkish outlook on Japan's monetary policy. In this context, identifying growth companies with high insider ownership can be particularly compelling for investors seeking stability and potential upside in a volatile market environment. High insider ownership often indicates strong confidence from those closest to the company, aligning their interests with those of shareholders.

Top 10 Growth Companies With High Insider Ownership In Japan

NameInsider OwnershipEarnings Growth
Micronics Japan (TSE:6871)15.3%32.7%
Hottolink (TSE:3680)27%61.9%
Kasumigaseki CapitalLtd (TSE:3498)34.7%43.3%
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 100 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

Here's a peek at a few of the choices from the screener.

Rakuten Group (TSE:4755)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Rakuten Group, Inc. operates in e-commerce, fintech, digital content, and communications both in Japan and internationally with a market cap of ¥2.22 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 is forecast to become profitable over the next 3 years, with earnings expected to grow 83.28% annually, significantly above market average. Despite its highly volatile share price and slower revenue growth (7.6% per year) compared to high-growth benchmarks, the company's insider ownership remains strong with no substantial insider selling or buying in recent months. However, its return on equity is projected to be modest at 9.7%.

TSE:4755 Ownership Breakdown as at Sep 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 ¥708.39 billion.

Operations: BayCurrent Consulting's revenue segments include consulting services in Japan.

Insider Ownership: 13.9%

BayCurrent Consulting is forecast to achieve revenue growth of 18.5% annually, outpacing the broader Japanese market's 4.3%. Earnings are expected to increase by 18.6% per year, also exceeding market averages. The company trades at a significant discount to its estimated fair value and has a high projected return on equity of 34.7% within three years. Despite recent share price volatility, insider ownership remains strong with no substantial insider trading activity reported in the last three months.

TSE:6532 Ownership Breakdown as at Sep 2024

Capcom (TSE:9697)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Capcom Co., Ltd. is a global company involved in planning, developing, manufacturing, selling, and distributing home video games, online games, mobile games, and arcade games with a market cap of ¥1.33 trillion.

Operations: Capcom's revenue segments include Digital Content (¥103.38 billion), Amusement Facilities (¥20.09 billion), and Amusement Equipment (¥10.34 billion).

Insider Ownership: 11.5%

Capcom's earnings are forecast to grow 14.5% annually, surpassing the Japanese market's 8.6%. Revenue growth is projected at 9.5% per year, also outpacing the market average of 4.3%. The company has a high expected return on equity of 20.4% in three years and strong insider ownership with no significant insider trading activity reported recently. However, its share price has been highly volatile over the past three months.

TSE:9697 Earnings and Revenue Growth as at Sep 2024

Summing It All Up

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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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