3 Leading Japanese Growth Companies With Up To 35% Insider Ownership On Tokyo Stock Exchange

Amid a backdrop of mixed weekly returns and ongoing monetary policy adjustments, Japan's market landscape presents a complex yet intriguing environment for investors. High insider ownership in growth companies can signal strong confidence from those closest to the company, potentially making these stocks appealing in the current fluctuating market conditions.

Top 10 Growth Companies With High Insider Ownership In Japan

Name	Insider Ownership	Earnings Growth
SHIFT (TSE:3697)	35.4%	27.2%
Kanamic NetworkLTD (TSE:3939)	25%	28.9%
Hottolink (TSE:3680)	27%	57.3%
Medley (TSE:4480)	34%	28.8%
Micronics Japan (TSE:6871)	15.3%	39.7%
Kasumigaseki CapitalLtd (TSE:3498)	34.8%	44.6%
ExaWizards (TSE:4259)	24.8%	80.2%
Money Forward (TSE:3994)	21.4%	63.6%
Soiken Holdings (TSE:2385)	19.8%	118.4%
freee K.K (TSE:4478)	24%	82.6%

Click here to see the full list of 105 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

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

Mercari (TSE:4385)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Mercari, Inc. operates a marketplace application in Japan and the United States, focusing on planning and development, with a market capitalization of approximately ¥343.60 billion.

Operations: The company generates revenue through its marketplace applications active in Japan and the United States.

Insider Ownership: 36%

Mercari, a prominent Japanese growth company with significant insider ownership, is innovating its business model by eliminating selling fees, a move contrary to market trends. This strategy enhances its appeal in the competitive U.S. resale market and aligns with recent revenue guidance predicting JPY 190 billion for 2024. Despite its highly volatile share price, Mercari's earnings have surged by 222.8% over the past year and are expected to grow by 19.14% annually, outpacing the broader Japanese market's growth.

• Unlock comprehensive insights into our analysis of Mercari stock in this growth report.
• Upon reviewing our latest valuation report, Mercari's share price might be too optimistic.

Rakuten Group (TSE:4755)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Rakuten Group, Inc. operates in e-commerce, fintech, digital content, and communications sectors serving a diverse global audience with a market capitalization of approximately ¥1.78 trillion.

Operations: The company generates revenue through its operations in e-commerce, fintech, digital content, and communications sectors internationally.

Insider Ownership: 17.3%

Rakuten Group, a Japanese growth company with high insider ownership, is trading at 78.1% below its estimated fair value, indicating potential undervaluation. While its revenue growth of 7.4% per year is modest compared to the market's 20%, it outpaces the Japanese market average of 4%. The company forecasts double-digit operating income growth for FY2024 and expects significant profit increases, with earnings projected to grow by 84.64% annually. However, its forecasted return on equity remains low at 8.8%.

• Click here to discover the nuances of Rakuten Group with our detailed analytical future growth report.
• Upon reviewing our latest valuation report, Rakuten Group's share price might be too pessimistic.

Capcom (TSE:9697)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Capcom Co., Ltd. is a Japanese company that specializes in the planning, development, manufacturing, selling, and distribution of home video games, online games, mobile games, and arcade games globally with a market capitalization of approximately ¥1.28 trillion.

Operations: The company generates its revenue from the sale and distribution of home video games, online games, mobile games, and arcade games across various global markets.

Insider Ownership: 11.5%

Capcom, a Japanese growth company with substantial insider ownership, has shown moderate financial performance. Its earnings are expected to grow by 8.7% annually, slightly above the market average of 8.6%. Revenue forecasts also exceed market expectations with a projected increase of 5.8% per year compared to the market's 4%. Despite these positive trends, Capcom's revenue growth does not meet the high benchmark of 20% annual increase. Recent significant events include a stock split and presentations at GDC 2024, indicating active corporate developments.

• Delve into the full analysis future growth report here for a deeper understanding of Capcom.
• Our valuation report unveils the possibility Capcom's shares may be trading at a premium.

Key Takeaways

• Gain an insight into the universe of 105 Fast Growing Japanese Companies With High Insider Ownership by clicking here.
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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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