3 Japanese Growth Stocks With High Insider Ownership

Japan’s stock markets have experienced significant volatility recently, driven by a rebounding yen and concerns over global growth. Despite this turbulence, the Nikkei 225 Index and TOPIX Index managed to recoup much of their losses by the end of the week. In such an unstable market environment, companies with high insider ownership can be particularly attractive. High insider ownership often indicates that those who know the company best have a strong belief in its future prospects, which can be a reassuring signal for investors seeking growth opportunities.

Top 10 Growth Companies With High Insider Ownership In Japan

Name	Insider Ownership	Earnings Growth
Hottolink (TSE:3680)	27%	59.7%
Kasumigaseki CapitalLtd (TSE:3498)	34.8%	43.3%
Micronics Japan (TSE:6871)	15.3%	39.8%
Kanamic NetworkLTD (TSE:3939)	25%	28.9%
Medley (TSE:4480)	34%	28.7%
SHIFT (TSE:3697)	35.4%	32.8%
ExaWizards (TSE:4259)	21.8%	91.1%
Money Forward (TSE:3994)	21.4%	66.9%
Astroscale Holdings (TSE:186A)	20.9%	90%
Soracom (TSE:147A)	16.5%	54.1%

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

Let's explore several standout options from the results in the screener.

Rakuten Group (TSE:4755)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Rakuten Group, Inc. offers e-commerce, fintech, digital content, and communications services to users in Japan and internationally with a market cap of ¥1.68 trillion.

Operations: The company'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%

Earnings Growth Forecast: 88.8% p.a.

Rakuten Group is expected to become profitable within the next three years, with earnings forecasted to grow at 88.76% per year. Despite a low return on equity forecast of 10%, its revenue growth rate of 7.9% annually outpaces the Japanese market average of 4.2%. Recent guidance indicates double-digit growth in consolidated operating results for fiscal year 2024, excluding its securities business.

• Click to explore a detailed breakdown of our findings in Rakuten Group's earnings growth report.
• The analysis detailed in our Rakuten Group valuation report hints at an inflated share price compared to its estimated value.

Lasertec (TSE:6920)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Lasertec Corporation designs, manufactures, and sells inspection and measurement equipment in Japan and internationally with a market cap of ¥2.43 trillion.

Operations: The company generates revenue of ¥213.51 billion from its inspection and measurement equipment segment.

Insider Ownership: 12.1%

Earnings Growth Forecast: 19.4% p.a.

Lasertec Corporation, with significant insider ownership, is experiencing robust growth. Its earnings grew by 28% over the past year and are forecasted to grow at 19.41% annually, outpacing the Japanese market average of 8.6%. Recent sales updates show substantial increases in its ACTIS Series revenues, reaching ¥76.56 billion for three quarters in fiscal 2024 compared to ¥40.44 billion for all of fiscal 2023. Despite high non-cash earnings and a volatile share price, Lasertec's return on equity is projected to reach an impressive 39.8% within three years.

• Delve into the full analysis future growth report here for a deeper understanding of Lasertec.
• Upon reviewing our latest valuation report, Lasertec's share price might be too optimistic.

Capcom (TSE:9697)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Capcom Co., Ltd. is involved in the planning, development, manufacturing, sales, and distribution of home video games, online games, mobile games, and arcade games both in Japan and internationally with a market cap of ¥1.21 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: 14.4% p.a.

Capcom, with significant insider ownership, is forecasted to grow its earnings at 14.44% annually, outpacing the Japanese market's 8.6%. Revenue is expected to increase by 9.5% per year, which is faster than the market average of 4.2%. Despite a highly volatile share price over the past three months and no recent substantial insider trading activity, Capcom's return on equity is projected to reach a strong 20.4% in three years.

• Unlock comprehensive insights into our analysis of Capcom stock in this growth report.
• Insights from our recent valuation report point to the potential overvaluation of Capcom shares in the market.

Make It Happen

• Explore the 101 names from our Fast Growing Japanese Companies With High Insider Ownership screener here.
• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
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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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