Stock Analysis

3 Japanese Growth Companies With Up To 34% Insider Ownership

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Japan's stock markets have recently experienced significant gains, bolstered by optimism surrounding China's stimulus measures and dovish commentary from the Bank of Japan. As the Nikkei 225 Index rose 5.6% and the TOPIX Index climbed 3.7%, investors are increasingly looking at growth companies with high insider ownership as potential opportunities. In this context, stocks with substantial insider ownership can be particularly attractive, as they often signal strong confidence from those closest to the company's operations and strategy. Here are three Japanese growth companies where insiders hold up to 34% of shares, reflecting a deep commitment to their long-term success.

Top 10 Growth Companies With High Insider Ownership In Japan

NameInsider OwnershipEarnings Growth
Micronics Japan (TSE:6871)15.3%31.5%
Hottolink (TSE:3680)27%61.5%
Kasumigaseki CapitalLtd (TSE:3498)34.7%43.5%
Medley (TSE:4480)34%30.4%
Kanamic NetworkLTD (TSE:3939)25%28.3%
ExaWizards (TSE:4259)22%75.2%
Money Forward (TSE:3994)21.4%68.1%
Loadstar Capital K.K (TSE:3482)33.8%24.3%
AeroEdge (TSE:7409)10.7%25.3%
Soracom (TSE:147A)16.5%54.1%

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.

Medley (TSE:4480)

Simply Wall St Growth Rating: ★★★★★★

Overview: Medley, Inc. operates platforms for recruitment and medical businesses in Japan and the United States, with a market cap of ¥124.25 billion.

Operations: Medley's revenue segments include ¥0.57 billion from New Services, ¥6.09 billion from the Medical Platform Business, and ¥17.87 billion from the Human Resource Platform Business.

Insider Ownership: 34%

Medley, Inc. demonstrates strong growth potential with its revenue forecasted to grow 25% annually, significantly outpacing the Japanese market's 4.3%. Earnings are expected to rise by 30.36% per year over the next three years, surpassing the market average of 8.7%. Despite recent volatility in its share price, Medley is trading at a substantial discount to its estimated fair value and recently expanded Jobley's services across the U.S., enhancing its growth prospects further.

TSE:4480 Ownership Breakdown as at Sep 2024

BayCurrent Consulting (TSE:6532)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: BayCurrent Consulting, Inc. is a Japanese firm offering consulting services with a market cap of ¥804.73 billion.

Operations: BayCurrent Consulting generates revenue primarily from consulting services in Japan.

Insider Ownership: 13.9%

BayCurrent Consulting shows solid growth potential with earnings forecasted to grow 18.42% annually, outpacing the Japanese market's 8.7%. Revenue is expected to increase by 18.4% per year, also higher than the market's 4.3%. Despite trading at a significant discount to its estimated fair value, BayCurrent has no recent insider trading activity and achieved a notable earnings growth of 16.8% over the past year.

TSE:6532 Earnings and Revenue Growth as at Sep 2024

Capcom (TSE:9697)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Capcom Co., Ltd. is a global developer, manufacturer, and distributor of home video games, online games, mobile games, and arcade games with a market cap of ¥1.39 trillion.

Operations: Capcom'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%

Capcom's earnings are forecast to grow at 14.54% annually, outpacing the Japanese market's 8.7%. Revenue is expected to increase by 9.6% per year, also higher than the market average of 4.3%. The company's Return on Equity is projected to be high at 20.3% in three years. Despite no recent insider trading activity and a volatile share price over the past three months, Capcom remains a strong growth prospect with substantial insider ownership.

TSE:9697 Earnings and Revenue Growth as at Sep 2024

Key Takeaways

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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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