Stock Analysis

### 3 Japanese Growth Stocks With Up To 33% Insider Ownership ###

TSE:3836
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Japan's stock markets have faced significant volatility recently, with the Nikkei 225 Index down 5.8% and the broader TOPIX Index losing 4.2%. Despite these challenges, growth companies with high insider ownership can offer stability and confidence to investors in uncertain times. In this article, we explore three Japanese growth stocks where insiders hold up to 33% ownership, providing a closer look at how strong internal commitment can signal potential resilience and long-term value.

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%61.5%
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%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%
Soracom (TSE:147A)16.5%54.1%

Click here to see the full list of 100 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

Let's take a closer look at a couple of our picks from the screened companies.

Avant Group (TSE:3836)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Avant Group Corporation, with a market cap of ¥71.55 billion, operates through its subsidiaries to provide accounting, business intelligence, and outsourcing services.

Operations: The company's revenue segments include the Management Solutions Business at ¥8.52 billion, Digital Transformation Promotion Business at ¥8.85 billion, and Consolidated Financial Statements Disclosure Business at ¥7.54 billion.

Insider Ownership: 34%

Avant Group demonstrates strong growth potential with earnings forecasted to grow 17.87% annually, outpacing the Japanese market's average. The company trades at 50.9% below estimated fair value, indicating potential undervaluation. Recent events include a dividend increase from ¥15.00 to ¥19.00 per share and a buyback of 364,100 shares for ¥477.64 million, reflecting confidence in its financial health and future prospects despite no significant insider trading activity recently observed.

TSE:3836 Ownership Breakdown as at Sep 2024
TSE:3836 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 ¥746.17 billion.

Operations: BayCurrent Consulting, Inc. generates revenue through consulting services in Japan.

Insider Ownership: 13.9%

BayCurrent Consulting showcases solid growth potential, with earnings forecasted to grow 18.71% annually, surpassing the Japanese market average of 8.6%. The stock trades at 42.9% below its estimated fair value, suggesting potential undervaluation. Despite no significant insider trading activity in the past three months, its high Return on Equity forecast of 34.7% in three years highlights strong financial performance prospects, supported by recent earnings growth of 16.8%.

TSE:6532 Ownership Breakdown as at Sep 2024
TSE:6532 Ownership Breakdown as at Sep 2024

Capcom (TSE:9697)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Capcom Co., Ltd. is a company that plans, develops, manufactures, sells, and distributes home video games, online games, mobile games, and arcade games both in Japan and internationally with a market cap of ¥1.36 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 is positioned for growth, with earnings forecasted to increase 14.5% annually, outpacing the Japanese market's 8.6%. Revenue is expected to grow at 9.5% per year, also above the market average of 4.2%. Despite a highly volatile share price recently and no significant insider trading activity in the past three months, Capcom's Return on Equity is projected to be strong at 20.4% in three years.

TSE:9697 Earnings and Revenue Growth as at Sep 2024
TSE:9697 Earnings and Revenue Growth as at Sep 2024

Taking Advantage

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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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