3 Japanese Growth Stocks With High Insider Ownership To Watch

Japan's stock markets have rebounded strongly, with the Nikkei 225 Index gaining 8.7% and the broader TOPIX Index up 7.9%, bolstered by better-than-expected U.S. economic data and a stronger-than-anticipated expansion in Japan's GDP for the second quarter of 2024. This positive momentum has created an opportune environment to examine growth stocks with high insider ownership, as these companies often exhibit strong alignment between management and shareholder interests, which can be particularly beneficial in a recovering market.

Top 10 Growth Companies With High Insider Ownership In Japan

Name	Insider Ownership	Earnings Growth
Micronics Japan (TSE:6871)	15.3%	32.9%
Hottolink (TSE:3680)	27%	61.9%
Kasumigaseki CapitalLtd (TSE:3498)	34.8%	43.3%
Medley (TSE:4480)	34%	30.5%
SHIFT (TSE:3697)	35.4%	32.8%
ExaWizards (TSE:4259)	22%	63%
Money Forward (TSE:3994)	21.4%	66.9%
Astroscale Holdings (TSE:186A)	21.3%	90%
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 104 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

Let's uncover some gems from our specialized screener.

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 in Japan and globally with a market cap of ¥1.89 trillion.

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

Insider Ownership: 17.3%

Earnings Growth Forecast: 82.9% p.a.

Rakuten Group is forecast to become profitable within the next three years, with earnings expected to grow at 82.86% per year, a rate considered above average market growth. However, its revenue growth of 7.7% per year is slower than the desired 20%. Despite high insider ownership, Rakuten's share price has been highly volatile over the past three months and its Return on Equity is projected to be low at 10.2% in three years.

• Take a closer look at Rakuten Group's potential here in our earnings growth report.
• Our comprehensive valuation report raises the possibility that Rakuten Group is priced higher than what may be justified by its financials.

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 ¥2.61 trillion.

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

Insider Ownership: 11.8%

Earnings Growth Forecast: 20% p.a.

Lasertec's earnings grew by 28% last year and are forecast to grow at 20% annually, outpacing the Japanese market. Revenue is expected to increase by 16.6% per year, also above market averages. However, the share price has been highly volatile recently. The company announced substantial earnings guidance for FY2025 with net sales projected at ¥240 billion and an operating income of ¥104 billion. Recent board changes include multiple resignations effective September 2024.

• Navigate through the intricacies of Lasertec with our comprehensive analyst estimates report here.
• The valuation report we've compiled suggests that Lasertec's current price could be inflated.

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 ¥1.31 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%

Earnings Growth Forecast: 14.4% p.a.

Capcom's earnings are forecast to grow 14.4% annually, outpacing the Japanese market's average growth of 8.5%. Revenue is expected to increase by 9.5% per year, also above the market average of 4.3%. Despite high insider ownership and a strong return on equity forecast at 20.4%, the share price has been highly volatile over the past three months, and no significant insider trading activity has been reported recently.

• Unlock comprehensive insights into our analysis of Capcom stock in this growth report.
• Our valuation report unveils the possibility Capcom's shares may be trading at a premium.

Turning Ideas Into Actions

• Access the full spectrum of 104 Fast Growing Japanese Companies With High Insider Ownership by clicking on this link.
• 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.
• Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.

Ready For A Different Approach?

• 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.

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